The External Reporting Board (XRB) is proud to have played its part in addressing climate change through the establishment of a climate-related disclosures framework for Aotearoa New Zealand and we have now published the final standards.
Previous consultation documents, exposure drafts and supporting documents can be found on our consultation page.
Throughout the development of the disclosure standards, we committed to taking a collaborative, open and transparent approach. We received 189 formal submissions plus informal feedback through direct engagement. This input has provided us with valuable insights into the needs and concerns of climate related reporting entities (CREs). The deep dive sessions we ran has also informed the development of the standards, FAQs and staff guidance.
Click here for past presentations and documents related to our previous consultation rounds.
In September 2020, the Government announced its intention to implement mandatory reporting on climate risks and tasked the XRB with developing reporting standards to support the new reporting regime.
In October 2021, the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill was passed and received Royal Assent. As a result, the XRB had a mandate to issue climate standards as part of a climate-related disclosures framework, and guidance on non-financial matters.
Task Force on Climate-related Disclosures (TCFD)
The TCFD was created in 2015 by the Financial Stability Board to develop consistent climate-related financial risk disclosures for use by companies, banks, and investors in providing information to stakeholders.
The TCFD produced recommendations in 2017 that outline a framework for reporting climate-related information. To date, this has been the leading guidance on climate reporting and has received widespread support globally. Multiple countries are considering its recommendations, including Australia, Canada, the EU, and the United Kingdom.
The TCFD recommendations incorporate four key themes: governance, strategy, risk management, and metrics and targets. Under each theme, 11 disclosures
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The TCFD has also produced general and sector-specific guidance on implementing its recommendations and will continue to develop further guidance.