Sustainability and climate reporting and assurance
Our work on sustainability and climate reporting and assurance has been a key area of focus for the XRB in recent weeks, with several local and international developments occurring during the period.
Recent conferences and events
In September our Chief Executive, Wendy Venter, spoke at the Responsible Investment Association Australasia (RIAA) conference about navigating the changing seas of climate reporting.
This month, Wendy participated in a panel discussion on the purpose of climate related disclosures, and the extent to which the intent is being realised, at the KangaNews-Westpac New Zealand Sustainable Finance Summit. We also provided updates on the He Tauira framework at Te Puna Tahua Toa, the Māori Accountants Network, conference (see more on He Tauira below).
Wendy Venter and Estelle Parker, Co-CEO of RIAA, on stage at the conference.
Photo courtesy of RIAA, taken by Abigail Dougherty.
Amendments to climate and assurance standards
During 2025, the XRB heard that the disclosure and assurance of scope 3 greenhouse gas (GHG) emissions was continuing to be a challenge for entities. We were also aware of international uncertainty regarding the disclosure of anticipated financial impacts (AFIs), and implementation challenges relating to AFI disclosure in the absence of comprehensive ‘how to’ guidance.
We received 102 responses to our recent consultation on potential time extensions to the requirements relating to scope 3 GHG emissions disclosure and assurance, and AFIs. Thank you to everyone who took the time to provide feedback. Most of the feedback supported further extensions, with the majority supporting the two-year extensions proposed by the XRB.
The XRB’s Sustainability Reporting Board and New Zealand Auditing and Assurance Standards Board both recently voted to provide an additional two reporting periods’ relief for these requirements.
This two-year extension acknowledges that scope 3 GHG emissions disclosure and assurance, and the disclosure of AFIs, are new requirements and entities need more time to develop their capability, methodology and data sets. The extension also aligns with international developments. Climate reporting entities that decide to make use of these extensions are strongly encouraged to continue to work internally so that they are prepared for mandatory disclosure and assurance.
The following standards will be formally gazetted and issued soon:
Amendments to Adoption of Aotearoa New Zealand Climate Standards 2025, which amends NZ CS 2 Adoption of Aotearoa New Zealand Climate Standards.
Amendment to Assurance Engagements over Greenhouse Gas Emissions Disclosures 2025, which amends NZ SAE 1 Assurance Engagements over Greenhouse Gas Emissions Disclosures.
Consultation on alignment with international standards for sustainability assurance, ethics and independence and using the work of an external expert
Our consultation on alignment with the new international assurance and ethics standards closed on 10 October. These international standards are designed to work together as a package and have been developed to be applicable to a wide range of sustainability reporting and for use by a broad range of assurance practitioners, including those from a non-financial background.
We sought views on:
ED ISSA (NZ) 5000, General Requirements for Sustainability Assurance Engagements
ED IESSA (NZ), International Ethics Standards for Sustainability Assurance (including International Independence Standards) (New Zealand)
ED Using the Work of An External Expert
We also sought views on possible amendments to the temporary assurance standard for GHG emissions disclosures.
Thank you to all who participated in our outreach events and wrote submissions. Thank you also to the local and international experts who shared their insights at our panel discussion.
Feedback has confirmed strong support for alignment with the new international standards. Responses highlighted the relevance of these standards for sustainability assurance engagements and the need for a global baseline.
We are currently working through the feedback and will communicate next steps soon.
