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