Page last updated: 04 October 2023

Climate Reporting Entities (CRE's)

The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 amended the Financial Markets Conduct Act 2013 (FMC Act), the Financial Reporting Act 2013, and the Public Audit Act 2001. The new law will require around 200 large financial institutions covered by the FMC Act to start making climate-related disclosures. Affected organisations are required to publish disclosures from financial years commencing on or after 1 January 2023, in accordance with climate standards published by the External Reporting Board (XRB). The organisations are known as Climate Reporting Entities.

Sign up for climate-related disclosure news and updates by selecting Climate Reporting Entity (CRE) information from the subscription checklist.

Ethical finance supported by the FMA

What you need to know 

October 2023: FMA launches Final record keeping guidance

View the guidance for keeping proper climate-related disclosure records

Consultation update September 2023: Climate-related disclosures timing challenge

Following Consultation: 'Climate-related disclosures timing challenge', the FMA has agreed in principle to grant an exemption (with conditions) for climate reporting entities who are listed issuers or registered banks from the requirement to include a copy of, or link to, their climate statements in their annual report for a period of two years.  

View the Consultation: Climate-related disclosures timing challenge (closed)

Climate-related Disclosures Monitoring Plan 2023-2026 published

View the monitoring plan, PDF

​Climate-related disclosures regime and the use of third-party providers​ information sheet published

View the third-party providers information sheet

Want to know more about the legislation?

Read the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021

 

  • All registered banks, credit unions, and building societies with total assets of more than $1 billion.
  • All managers of registered investment schemes (other than restricted schemes) with greater than $1 billion in total assets under management.
  • All licensed insurers with greater than $1 billion in total assets or annual premium income greater than $250 million.
  • Listed issuers of quoted equity securities with a combined market price exceeding $60 million.
  • Listed issuers of quoted debt securities with a combined face value of quoted debt exceeding $60 million.
  • Authorised Bodies, who are managers of registered schemes and operate under the licence of another manager, where the total assets under that licensee (including assets of all authorised bodies) exceeds $1 billion.

Use these flowcharts to help determine if your organisation is a Climate Reporting Entity:

These charts are only for guidance. They should not be considered to be, or relied on as, legal advice.
Please ensure you undertake your own due diligence.

For more technical questions determining whether your organisation is a CRE, download the "Am I a Climate Reporting Entity?" fact sheet

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. 

XRB has released its final Climate Standards. View the Climate Standards from XRB.

They are:

  • Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1)
  • Aotearoa New Zealand Climate Standard 2: Adoption of Aotearoa New Zealand Climate Standards (NZ CS 2)
  • Aotearoa New Zealand Climate Standard 3 – General Requirements for Climate-related Disclosures (NZ CS 3)

The Aotearoa New Zealand Climate Standards apply to reporting periods beginning on or after 1 January 2023.

First climate statements will be published in 2024.

  • Prepare an annual climate statement that discloses information about the effects of climate change on their business or any fund they manage.
  • Prepare climate statements in accordance with climate standards issued by the XRB.
  • Obtain independent assurance about the part of the climate statements that relates to the disclosure of greenhouse gas (GHG) emissions for reporting years beginning on or after 27 October 2024.
  • Make the climate statement available to the public.
  • Comply with record-keeping requirements.

 

We’ve published our initial monitoring approach to climate-related record keeping - to inform and support new climate reporting entities to meet their statutory reporting requirements.

Download the Climate-related disclosure record keeping: our initial approach PDF

This plan provides a summary of our approach to monitoring the compliance of CREs with the legislative requirements under the FMC Act and reporting obligations under the CRD framework. It is primarily intended for CREs, their directors and other authorised bodies.

Download the Climate-related Disclosures Monitoring Plan 2023-2026 

The Financial Markets Authority (Levies) Regulations 2012 set out the levies payable by industry. The levies are set by Regulation on the recommendation of the Minister of Commerce and Consumer Affairs. This recommendation is based on advice from the Ministry of Business, Innovation, and Employment.

This document outlines the levies related to the new Climate Related Disclosures regime.

The regulations relate to a climate reporting entities obligations under the Financial Markets Conduct Act 2013 (as amended by the CRD Act), and prescribes –  

  1. the manner in which climate-related disclosure records are to be kept;
  2. how climate-related disclosure records are to be made available for inspection; and
  3. sets infringement fees for non-compliance.

Please note, these regulations come into force on 2 October 2023.

Read the Financial Market Conduct (Climate-related Disclosures) Amendment Regulations 2023 (SL 2023/222)

Latest

Climate-related Disclosures – Scenario analysis information sheet
This information sheet details compliance expectations of the FMA for scenario analysis disclosures made under the climate-related disclosures (CRD) r ...
Consultation: Proposed guidance and expectations for keeping proper climate-related disclosure records
The FMA has now published the final guidance for keeping proper climate-related disclosure records, along with a summary of key themes and compilation ...
Guidance for keeping proper climate-related disclosure records
This guidance note is intended to help climate reporting entities (CREs) meet their statutory requirement to keep proper climate-related disclosure re ...
Consultation: Climate-related disclosures timing challenge
The FMA is consulting on a proposed exemption to exempt certain climate reporting entities from the requirement to include a link to their climate sta ...
Monitoring Climate Disclosures: Paving the way for transparency and accountability
Jenika Phipps, Manager Climate Related Disclosures talks about monitoring climate disclosures towards transparency and accountability in this opinion ...
Climate-related disclosures regime and the use of third-party providers
Guidance to assist climate reporting entities in understanding what they should consider before engaging a third-party provider to deliver services fo ...
Climate-related Disclosures Monitoring Plan 2023-2026
The FMA’s approach to monitoring the compliance of climate reporting entities with their legislative requirements and reporting obligations for the ...
Consultation: Proposed exemptions for CREs in liquidation, receivership, or voluntary administration
The FMA is considering a class exemption to provide relief from climate reporting duties for CREs that are in liquidation, receivership, or voluntary ...