15 December 2022
Landmark moment in New Zealand’s transition to a low-emissions future
Today, Michele Embling, Chair of the External Reporting Board (XRB), has announced that the Climate-related Disclosures standards have now been published.
Around 200 of New Zealand’s most economically significant entities will start reporting against the standards from 1 January 2023. Reporting on climate-related risks and opportunities is largely still in its infancy, but Ms Embling believes having formalised reporting standards will build momentum and catalyse change.
“By providing investors with the information they are increasingly demanding, such as a company’s greenhouse gas emissions, the reporting regime will help to drive capital towards activities that support the transition to a low-emissions future. It will also galvanise directors and management to start looking closely at their climate-related risks and opportunities and what strategies and plans they have in place to manage them.” Says Ms Embling
The reporting standards have been developed through three consultative iterations over the past 18 months according to the XRB’s Chief Executive, April Mackenzie.
“The level of active engagement on this work has been impressive. New Zealand organisations and individuals are clearly and rightfully very passionate about this topic. We are immensely grateful to everyone who got involved in this work and provided feedback—we couldn’t have done it without them.”
Ms Mackenzie says a number of changes to the draft standards have been made following the last round of consultation.
Find Aotearoa New Zealand Climate Standards here.
Media contact: Emily.marden@xrb.govt.nz 0274140340
Media statement - 21 October 2022
New Zealander appointed to the International Auditing and Assurance Standards Board
The Chief Executive of the External Reporting Board (XRB), April Mackenzie has today announced the appointment of Greg Schollum, Deputy Controller and Auditor-General to the International Auditing and Assurance Standards Board (IAASB) for a three-year term.
The IAASB is an independent standard-setting body that works to strengthen public confidence in the global auditing and assurance profession. Appointments to this Board are made through nominations to the Public Interest Oversight Board who announced successful nominations earlier today.
“We are delighted that Greg’s nomination has been successful. As well as contributing to the development of high-quality audit and assurance standards, Greg will bring a strong public interest focus to the work, emphasising the needs of users in the standard setting process and ultimately increase the trust and confidence of users of audited information.
With former Auditor-General Lyn Provost ending a six-year term from the Board, it’s pleasing to still have a New Zealand voice involved in the development of international auditing and assurance standards. Greg will be an asset to the IAASB with his decades of auditing and standard-setting experience”, said Ms Mackenzie.
Greg has been New Zealand’s Deputy Controller and Auditor-General since 2015 and has more than three decades’ experience in auditing and standard setting, with a particular focus on setting accounting and audit and assurance standards. Greg has previously been New Zealand's representative on the International Public Sector Accounting Standards Board, a member of the New Zealand Accounting Standards Board and the Financial Reporting Standards Board of the New Zealand Institute of Chartered Accountants.
Ends
Media contact: Emily.marden@xrb.govt.nz 0274140340
28 July 2022
Shedding sunlight on climate risks and opportunities
Today the External Reporting Board (XRB) has released their final consultation on the Climate related Disclosure standards which around 200 of New Zealand’s largest entities will need to report against from next year.
Development of the reporting regime followed the Government’s announcement of its intention to introduce a world-first mandatory climate reporting regime. Currently, New Zealand’s largest entities provide limited information on how climate change could impact their future operations.
XRB Chief Executive April Mackenzie says today’s release is a significant milestone towards ensuring the effects of climate change are actively and routinely considered in business, investment, and lending decisions.
“Climate disclosures bring climate-related risks and opportunities front and centre so that entities are prompted to think about their strategy and business model and assess whether they can continue to create value in the long term, or whether they need to adapt.”
Mackenzie stresses that investors and shareholders are increasingly demanding greater transparency through the disclosure of climate-related risks and opportunities.
“The disclosures are about transparency and trust. These sit at the heart of decision making—for investors and the entities themselves.
Ultimately, it’s about driving investment and capital away from high-emissions activities and towards low-emissions activities. We are confident the disclosure regime we’ve developed will support that transition.” says Mackenzie.
The XRB’s consultation closes 26 September 2022 – further information can be found here.
Media contact: Emily.marden@xrb.govt.nz 0274140340
5 April 2022
XRB appoints ESG specialist as Chair of Auditing and Assurance Standards Board
The Chair of the External Reporting Board (XRB), Michele Embling has today announced the appointment of Marje Russ as Chair of the XRB’s Auditing and Assurance Standards Board. Ms Russ will replace outgoing Chair Robert Buchanan who ends a 6-year tenure as Chair at the end of June.
“We’re extremely grateful for Robert’s years of dedication and the public interest focus he brought as Chair and are delighted to welcome Marje into the role,” says Ms Embling.
Ms Russ has been a member of the XRB’s Auditing and Assurance Standards Board since 2013 and previously represented the XRB as an advisory panel member on the International Auditing and Assurance Standards Board’s project to develop guidance on Extended External Reporting (EER), which was published in April 2021.
Ms Russ has a background in environmental and resource management with expertise in environmental planning/policy-setting, environmental certification and assurance, and risk management and governance.
Ms Russ stepped down from an 11-year Board Director position for Tonkin & Taylor Group Ltd in 2021 and continues in a consulting role as Technical Director Environment and Sustainable Business. She has recently been appointed to the board of Manaaki Whenua: Landcare Research.
For further information about the XRB and the Auditing and Assurance Standards Board, click here.
16 March 2022
New Zealand a step closer towards Climate reporting
Today, the External Reporting Board has released the second part of the Climate-related Disclosure standards for public consultation. This release focuses on Strategy, and Metrics and Targets which combined, outline how entities need to assess current and future climate risks and opportunities and report on corresponding financial implications.
“These are challenging but critical topics that will require reporting entities to think about developing and implementing new processes,” says XRB Board Chair Michele Embling.
The Strategy section looks at the impacts of climate risks and opportunities on an entity’s business model, strategy and financial planning over the short, medium, and long term, including actual and potential financial impacts.
“Entities will need to look at various possible future scenarios and test the resilience of their business model and strategy to form a realistic picture of potential future performance.
The proposed Targets and Metrics section details how entities will report on measuring and managing climate risks and opportunities.
“These disclosures will mean information users, such as investors, will have sight of an entity’s potential risk-adjusted returns, their ability to meet financial obligations, and have a good idea of how they are managing or adapting to climate risks and opportunities.” Added Ms Embling
The FMA, who are responsible for compliance and enforcement of the reporting regime, has signalled realistic expectations in its implementation approach.
“We recognise that reporting entities won’t achieve perfection on day one, so our compliance expectations will be focused on supporting entities to meet the new reporting requirements”, said FMA Acting Director of Capital Markets Paul Gregory.
Development of the climate reporting standards follows the announcement in 2020 to introduce a mandatory reporting regime for key New Zealand companies including large, listed issuers and financial sector entities.
Consultation closes 13 April.
See the consultation document here.
The launch slides are unavailable.
Media contact: Emily.marden@xrb.govt.nz 0274140340
Editor's note: The closing date for the consultation has subsequently been changed to 2 May 2022.
