Update on Parliamentary process

26 August 2021

Update on Parliamentary process

Select Committee has reported back on its recommendations for the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill. A number of key changes were recommended, including:

  • Small listed entities (either with a market capitalisation of less than $60 million, listed on growth markets, or with no quoted debt or equity securities) to be excluded.
  • GHG emissions no longer require immediate assurance — but requirements to come into force within three years of the Bill receiving Royal Assent.
  • The ‘disclose or explain’ provisions removed, so that all reporting entities will need to disclose unless any differential reporting requirements are specified in the XRB’s standard.
  • All discussion of immateriality removed from the Bill and deemed to be part of the XRB’s standard.

Climate reporting entities will also be required to prepare climate statements in respect of the first accounting period commencing on or after we issue the first climate standard.