Financial Markets Conduct (Climate-related Disclosures – Works Finance (NZ) Limited) Exemption Notice 2024

The Financial Markets Conduct (Climate-related Disclosures – Works Finance (NZ) Limited) Exemption Notice 2024 (Notice) exempts Works Finance (NZ) Limited (Works Finance) from its climate-related disclosure obligations under Part 7A of the Financial Markets Conduct Act 2013 (Act).

Works Finance operates as a sole purpose intra-group funding vehicle. It lends to Downer New Zealand Limited, the principal New Zealand operating company in the group. Its ultimate parent is Downer EDI Limited (Downer EDI).  Each of Works Finance and Downer EDI are climate reporting entities under the Act.  Downer EDI will be preparing climate statements for itself and its subsidiaries (including Works Finance) pursuant to section 461ZA of the Act. 

The Notice is subject to a number of conditions including requiring alternative reporting (i.e. the group climate statements), disclosure, and Works Finance continuing to operate as a sole purpose intra-group funding vehicle.

The key reasons for granting the exemption (as set out in full in the Statement of Reasons in the Notice) are that –

• Works Finance operates as a sole purpose Intra-group funding vehicle. The group climate statements of Downer EDI will therefore provide more meaningful disclosure than stand-alone Works Finance statements;
• Works Finance’s primary users would need to look to Downer EDI’s group climate statements to obtain a full picture of the climate-related matters relating to their investments. Having additional, stand-alone climate statements of Works Finance would therefore be confusing, unhelpful and artificial in these circumstances.

Download Financial Markets Conduct (Climate-related Disclosures – Works Finance (NZ) Limited) Exemption Notice 2024