New Zealand a step closer towards Climate reporting

28 July 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. 

The launch slides are unavailable.

Media contact:  0274140340 

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