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Media statement - 21 October 2022

New Zealander appointed to the International Auditing and Assurance Standards Board

The Chief Executive of the External Reporting Board (XRB), April Mackenzie has today announced the appointment of Greg Schollum, Deputy Controller and Auditor-General to the International Auditing and Assurance Standards Board (IAASB) for a three-year term.

The IAASB is an independent standard-setting body that works to strengthen public confidence in the global auditing and assurance profession. Appointments to this Board are made through nominations to the Public Interest Oversight Board who announced  successful nominations earlier today. 

“We are delighted that Greg’s nomination has been successful. As well as contributing to the development of high-quality audit and assurance standards, Greg will bring a strong public interest focus to the work, emphasising the needs of users in the standard setting process and ultimately increase the trust and confidence of users of audited information.

With former Auditor-General Lyn Provost ending a six-year term from the Board, it’s pleasing to still have a New Zealand voice involved in the development of international auditing and assurance standards. Greg will be an asset to the IAASB with his decades of auditing and standard-setting experience”, said Ms Mackenzie.

Greg has been New Zealand’s Deputy Controller and Auditor-General since 2015 and has more than three decades’ experience in auditing and standard setting, with a particular focus on setting accounting and audit and assurance standards. Greg has previously been New Zealand's representative on the International Public Sector Accounting Standards Board, a member of the New Zealand Accounting Standards Board and the Financial Reporting Standards Board of the New Zealand Institute of Chartered Accountants.

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Media contact: Emily.marden@xrb.govt.nz  0274140340

Previous Media Releases

28 July 2022

Shedding sunlight on climate risks and opportunities

Today the External Reporting Board (XRB) has released their final consultation on the Climate related Disclosure standards which around 200 of New Zealand’s largest entities will need to report against from next year.

Development of the reporting regime followed the Government’s announcement of its intention to introduce a world-first mandatory climate reporting regime. Currently, New Zealand’s largest entities provide limited information on how climate change could impact their future operations.

XRB Chief Executive April Mackenzie says today’s release is a significant milestone towards ensuring the effects of climate change are actively and routinely considered in business, investment, and lending decisions.

“Climate disclosures bring climate-related risks and opportunities front and centre so that entities are prompted to think about their strategy and business model and assess whether they can continue to create value in the long term, or whether they need to adapt.”

Mackenzie stresses that investors and shareholders are increasingly demanding greater transparency through the disclosure of climate-related risks and opportunities.

“The disclosures are about transparency and trust. These sit at the heart of decision making—for investors and the entities themselves.

Ultimately, it’s about driving investment and capital away from high-emissions activities and towards low-emissions activities. We are confident the disclosure regime we’ve developed will support that transition.” says Mackenzie.

The XRB’s consultation closes 26 September 2022 – further information can be found here.

Media contact: Emily.marden@xrb.govt.nz 0274140340

 

 

5 April 2022

XRB appoints ESG specialist as Chair of Auditing and Assurance Standards Board  

The Chair of the External Reporting Board (XRB), Michele Embling has today announced the appointment of Marje Russ as Chair of the XRB’s Auditing and Assurance Standards Board.  Ms Russ will replace outgoing Chair Robert Buchanan who ends a 6-year tenure as Chair at the end of June.   

“We’re extremely grateful for Robert’s years of dedication and the public interest focus he brought as Chair and are delighted to welcome Marje into the role,” says Ms Embling.

Ms Russ has been a member of the XRB’s Auditing and Assurance Standards Board since 2013 and previously represented the XRB as an advisory panel member on the International Auditing and Assurance Standards Board’s project to develop guidance on Extended External Reporting (EER), which was published in April  2021.

Ms Russ has a background in environmental and resource management with expertise in environmental planning/policy-setting, environmental certification and assurance, and risk management and governance.

Ms Russ stepped down from an 11-year Board Director position for Tonkin & Taylor Group Ltd in 2021 and continues in a consulting role as Technical Director Environment and Sustainable Business.  She has recently been appointed to the board of Manaaki Whenua: Landcare Research. 

For further information about the XRB and the Auditing and Assurance Standards Board, click here.

 

 

16 March 2022

New Zealand a step closer towards Climate reporting 

Today, the External Reporting Board has released the second part of the Climate-related Disclosure standards for public consultation. This release focuses on Strategy, and Metrics and Targets which combined, outline how entities need to assess current and future climate risks and opportunities and report on corresponding financial implications. 

“These are challenging but critical topics that will require reporting entities to think about developing and implementing new processes,” says XRB Board Chair Michele Embling. 

The Strategy section looks at the impacts of climate risks and opportunities on an entity’s business model, strategy and financial planning over the short, medium, and long term, including actual and potential financial impacts.  

“Entities will need to look at various possible future scenarios and test the resilience of their business model and strategy to form a realistic picture of potential future performance.  

The proposed Targets and Metrics section details how entities will report on measuring and managing climate risks and opportunities.  

“These disclosures will mean information users, such as investors, will have sight of an entity’s potential risk-adjusted returns, their ability to meet financial obligations, and have a good idea of how they are managing or adapting to climate risks and opportunities.” Added Ms Embling 

The FMA, who are responsible for compliance and enforcement of the reporting regime, has signalled realistic expectations in its implementation approach. 

“We recognise that reporting entities won’t achieve perfection on day one, so our compliance expectations will be focused on supporting entities to meet the new reporting requirements”, said FMA Acting Director of Capital Markets Paul Gregory.  

Development of the climate reporting standards follows the announcement in 2020 to introduce a mandatory reporting regime for key New Zealand companies including large, listed issuers and financial sector entities.  

 

Consultation closes 13 April.

See the consultation document here. 

View the launch slides here.

Media contact: Emily.marden@xrb.govt.nz  0274140340 

Editor's note: The closing date for the consultation has subsequently been changed to 2 May 2022. 

20 October 2021 

First ever Climate Change-related disclosure consultation begins

The External Reporting Board (XRB) today began consultation with business on the first part of the Government’s proposed climate-related disclosure standards.

“Ultimately, this will be about making sure the impacts of climate change are actively considered by boards and management so that smarter business and investment decisions can be made, and entities demonstrate accountability and foresight in relation to climate issues,” says Chief Executive April Mackenzie.

Development of these standards follows the announcement in 2020 to introduce a mandatory reporting regime for key New Zealand companies including large, listed issuers and financial sector entities.

“These standards will put Aotearoa New Zealand up with the global best - building on the four areas developed by the international Task Force on Climate-related Financial Disclosures (TCFD).

“Together Governance, Risk Management, Strategy, and Metrics and Targets sections make up the Climate-related disclosure standards, and we’re kicking off the process with consultation on the Governance and Risk Management areas.”

The decision to focus first on Governance and Risk Management has been deliberate, says Mackenzie.

“For affected entities these areas should be straightforward to implement, whereas the Strategy, and Metrics and Targets sections are more complex areas that will require many entities to capture new information and implement new processes. We’re currently working through what that could look like before launching the next draft sections in March next year,” added Mackenzie.

Governance disclosures specify what entities need to disclose regarding board oversight and management assessment of climate-related risks and opportunities, while Risk Management disclosures are about the processes an entity uses to identify, assess, and manage climate-related risks, and how these are integrated into an entity’s overall risk management processes.

The current consultation closes 22 November.

 

 

17 June 2021

XRB appoints Climate Policy expert

Media Release

Today Chief Executive of the External Reporting Board, April Mackenzie, has announced the appointment of Dr Amelia Sharman as Director of Climate Reporting.  Dr Sharman will be responsible for managing the execution and co-ordination of the Climate-related Disclosure Standard(s) project.

“I am delighted that Amelia will be joining us at the XRB to lead this important work. She brings a wealth of climate expertise and experience to this role, and I look forward to welcoming her into our management team,” says Mackenzie.

“This is a priority project for the XRB, and we’re proud to be part of taking New Zealand a step closer towards a low carbon future.

I’d also like to thank the many high-calibre candidates who expressed an interest in this role”, says Mackenzie.

Dr Sharman has an extensive background in climate and sustainability policy areas, most recently as Head of Policy at Ara Ake, the entity responsible for accelerating energy innovation to support New Zealand's transition to a low-emissions energy future. Previously, Dr Sharman worked for the New Zealand Productivity Commission contributing to climate and sustainability reports on New Zealand’s transition to a low-emissions economy. Most notably, Dr Sharman was at the forefront of the Commission’s analysis into climate-related financial disclosures, and subsequently developed the Commission’s final recommendation on the disclosure regime for New Zealand.

Dr Sharman will join the XRB on 28 June 2021.

XRB’s Climate reporting work