New Zealand was the first country in the world to introduce laws around climate-related financial reporting and has now released its disclosure requirements. Industry experts explain what this means for your business.
What are the Aotearoa New Zealand Climate Standards?
Following Aotearoa New Zealand Climate Standards is a mandatory requirement for large organisations, or, Climate Reporting Entities (CREs). They must disclose climate-related risks and opportunities in their financial reporting.
The ultimate goal of the standards is to direct investment towards businesses that are enabling a low-emissions, climate-resilient future.
The External Recording Board (XRB) developed and published the standards, based on global climate-related disclosure requirements.
Who needs to report?
Climate Reporting Entities
Around 200 New Zealand CREs must follow the standards and report on their climate-related risks and opportunities.
CREs are large (market capitalisation of more than $60 million) publicly listed companies. Insurers, banks, non-bank deposit takers and investment managers must also report.
What about small businesses?
Small businesses are not required to meet the standards, but should understand them, particularly if they are exporting or working with CREs.
Dr. Amelia Sharman of XRB, Dr. Peter Longdill of Sanford and Rachel Depree of Zespri tell us what all New Zealand businesses need to know.
Read the full article here.