The New Zealand government has introduced a new regime making climate-related disclosures mandatory for some organisations. Organisations covered (known as Climate Related Entities or CREs) will have to make annual disclosures covering governance arrangements, risk management, strategies and metrics and targets for mitigating and adapting to climate change impacts. The requirement applies to the larger publicly listed companies, big insurers, banks, non-bank deposit takers and investment managers.
The FMA is responsible for independent monitoring and enforcement of the regime, providing guidance about compliance expectations, and reporting on monitoring activities and findings.
The FMA is taking a broadly educative and constructive approach to the new regime, issuing high level guidance on compliance expectations, then moving to a proactive regulatory role as the regime becomes more established.
July 2022 - XRB releases exposure draft of Climate Standards
September 2022 - FMA publishes Initial Monitoring Approach
October 2022 - MBIE publishes Exposure Draft of record keeping regulations
December 2022 - XRB releases final Climate Standard
January 2023 - First annual reporting periods for climate statements begin
March 2023 - New record keeping regulations enacted
April 2023 - New record keeping regulations in force
April/May 2023 - FMA publishes detailed record keeping guidance
April 2024 - First climate statements published
The climate-related disclosures legislation gives the External Reporting Board (XRB) a mandate to develop and issue climate standards as part of a climate-related disclosures framework. The XRB intends to issue the following:
On the 28th of July, the XRB released an ‘exposure draft’ of the new Climate Standards.
XRB will release its final Climate Standards at the end of 2022. The FMA will then begin regulating and monitoring the new CRD rules.
First annual reporting periods begin on January 1, 2023 for those Climate Reporting Entities with a January 1 balance date. All others begin from the start date of their next reporting period.
First climate statements will be published in 2024.
Read more about XRB’s approach to Climate Related Disclosures on their website
Check the “What are Climate Reporting Entities (CREs)?” list above. For more technical questions determining whether your organisation is a CRE download the "Am I a Climate Reporting Entity?" fact sheet.
We suggest seeking legal advice on whether your organisation is included. If you have further questions then contact us
FMA's implementation approach to the CRD regime
This document briefly explains the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (the CRD legislation) and outlines the Financial Markets Authority’s (FMA) implementation approach for the CRD regime over a period of approximately 4 years, through to