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.
Final record keeping guidance will be published on 4 October 2023
(following record keeping regulations in force on 2 October 2023.
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.
Climate-related Disclosures Monitoring Plan 2023-2026 published
Climate-related disclosures regime and the use of third-party providers information sheet published
Want to know more about the legislation?
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.
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.
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.
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.
The Financial Markets Authority (Levies) Regulations 2012, as amended in 2020 and 2022, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).
The regulations relate to a climate reporting entities obligations under the Financial Markets Conduct Act 2013 (as amended by the CRD Act), and prescribes –
Please note, these regulations come into force on 2 October 2023.