Background to He Tauira

Why we’re developing this framework

In 5 September 2020, the Government extended the XRB’s mandate to include the development and issuance of mandatory Climate Related Financial Disclosures for specified entities, and the ability to develop non-binding (voluntary) guidance on non-financial reporting.  Additionally, there are growing calls from users of reporting information – such as investors, shareholders and customers – for entities to disclose information that extends what is included in traditional financial reporting frameworks. This broader information includes things like an entity's impact on communities and the environment.

Under our non-financial reporting extended mandate, we have decided to begin at the framework level, to ensure the work is connected and holistic.

What are the benefits of a voluntary non-financial reporting framework?

A non-financial reporting framework has the potential to create immense value for reporting entities and their shareholders. This includes:

• Increased trust and transparency
• Better information for decision-making and/or allocating resources 
• Attracting investment 
• Maintaining a social licence to operate 

Developing a voluntary reporting framework – our work to date

We initially partnered with PwC to scope and plan the work. During this phase of the work the project was given its name - Ngā pou o te kawa ora, which refers to the pillars that are the principles of life. 

Māori entities generally apply a holistic approach to their decision making and reporting, which reflects the interconnectedness of people, environment, and spirituality. For this reason, our work to develop a voluntary non- financial  reporting framework has initially focused on engaging with Māori to understand how a mātauranga Māori approach could benefit the development of this framework.  

Over the following 12 months we conducted a series of regional wānanga. This enabled us to identify core elements of the reporting framework relevant to Māori reporting entities, this process involved engagement with 50 Māori entities and over 80 individuals from July 2022 through to June 2023.

Following this, we were able to construct the core components of a draft framework, currently titled He Tauira.

The draft framework was then reviewed and tested by a select group of technical advisors representative of a range of Māori entities, whakapapa, corporate background, disciplines, and geographies. The feedback from the technical advisors was incorporated into He Tauira.