Climate-related disclosures Bill passes third reading

Published: 21 October 2021

The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill, which passed its third reading today, will ensure large financial organisations disclose and ultimately act on climate-related risks and opportunities.

The Bill will require around 200 of the largest financial market participants in New Zealand to disclose clear, comparable and consistent information about the risks, and opportunities, climate change presents to their business.

Once passed, disclosures will be required for each financial year beginning in 2023, subject to the publication of climate standards from New Zealand’s independent accounting standard setter, the External Reporting Board (XRB).

The XRB released its first consultation document focussing on Governance and Risk Management for the proposed climate-related disclosure reporting standards on 20 October 2021. Consultation on the Strategy, and Metrics and Targets sections of the proposed standards will follow.

Climate-related Disclosures: Governance and Risk Management Consultation Document(external link) – XRB website

The Financial Markets Authority will be responsible for the independent monitoring and enforcement of the relevant reporting entities’ compliance with the new reporting standards.

Read the NZ passes world-first climate reporting legislation media release(external link) – beehive.govt.nz

Read more about the mandatory climate-related disclosures

MBIE media contact

Email: media@mbie.govt.nz