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New Zealand bill requiring financial companies to report on climate change

If the bill is passed, reporting will be required for the following entities after 2023. All insurers with over $ 1 billion in assets under management, all banks with over $ 1 billion in total assets, and all equity and debt issuers listed on NZX.

“Unless the financial sector knows how investment is affecting the climate, carbon dioxide emissions cannot be reduced to net zero by 2050,” said James Shaw, Minister of Climate Change. I will. “This law brings climate risk and resilience to the heart of financial and business decision making.”

The reporting standards are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, which is widely recognized as an international best practice.

“Many companies face significant physical and transitional risks associated with climate change. Some companies report on how climate change affects their business, strategy and financial position. We’re starting to publish, but we still have a long way to go, “says David Clark. Minister of Commerce and Consumer Affairs and Minister of State-owned Enterprises.

Financial Markets Bureau (FMA) Is responsible for overseeing and implementing compliance with reporting standards, and the External Reporting Committee (XRB) publishes guidance material on a wider range of environmental, social and governance reports and other non-financial reporting. I will.

New Zealand bill requiring financial companies to report on climate change

Source link New Zealand bill requiring financial companies to report on climate change

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