20 October 2021
First ever Climate Change-related disclosure consultation begins
The External Reporting Board (XRB) today began consultation with business on the first part of the Government’s proposed climate-related disclosure standards.
“Ultimately, this will be about making sure the impacts of climate change are actively considered by boards and management so that smarter business and investment decisions can be made, and entities demonstrate accountability and foresight in relation to climate issues,” says Chief Executive April Mackenzie.
Development of these 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.
“These standards will put Aotearoa New Zealand up with the global best - building on the four areas developed by the international Task Force on Climate-related Financial Disclosures (TCFD).
“Together Governance, Risk Management, Strategy, and Metrics and Targets sections make up the Climate-related disclosure standards, and we’re kicking off the process with consultation on the Governance and Risk Management areas.”
The decision to focus first on Governance and Risk Management has been deliberate, says Mackenzie.
“For affected entities these areas should be straightforward to implement, whereas the Strategy, and Metrics and Targets sections are more complex areas that will require many entities to capture new information and implement new processes. We’re currently working through what that could look like before launching the next draft sections in March next year,” added Mackenzie.
Governance disclosures specify what entities need to disclose regarding board oversight and management assessment of climate-related risks and opportunities, while Risk Management disclosures are about the processes an entity uses to identify, assess, and manage climate-related risks, and how these are integrated into an entity’s overall risk management processes.
The current consultation closes 22 November.
17 June 2021
XRB appoints Climate Policy expert
Today Chief Executive of the External Reporting Board, April Mackenzie, has announced the appointment of Dr Amelia Sharman as Director of Climate Reporting. Dr Sharman will be responsible for managing the execution and co-ordination of the Climate-related Disclosure Standard(s) project.
“I am delighted that Amelia will be joining us at the XRB to lead this important work. She brings a wealth of climate expertise and experience to this role, and I look forward to welcoming her into our management team,” says Mackenzie.
“This is a priority project for the XRB, and we’re proud to be part of taking New Zealand a step closer towards a low carbon future.
I’d also like to thank the many high-calibre candidates who expressed an interest in this role”, says Mackenzie.
Dr Sharman has an extensive background in climate and sustainability policy areas, most recently as Head of Policy at Ara Ake, the entity responsible for accelerating energy innovation to support New Zealand's transition to a low-emissions energy future. Previously, Dr Sharman worked for the New Zealand Productivity Commission contributing to climate and sustainability reports on New Zealand’s transition to a low-emissions economy. Most notably, Dr Sharman was at the forefront of the Commission’s analysis into climate-related financial disclosures, and subsequently developed the Commission’s final recommendation on the disclosure regime for New Zealand.
Dr Sharman will join the XRB on 28 June 2021.
XRB’s Climate reporting work