Leadership group established to support climate related financial disclosures
26 August 2022
We are in a global climate emergency that requires all sectors of society to understand their obligations, and to act to ensure New Zealand can achieve the emission reductions to stay within 1.5-degrees of warming as required under the Paris Agreement.
As part of building an understanding of our emissions, and ensuring our organisations and businesses are playing their part, Te Kāwai Ārahi Pūrongo Mōwaho, the External Reporting Board (XRB), has been tasked by the Financial Markets Authority (FMA) to develop climate disclosure standards for the New Zealand market, build capability and influence compliance towards the first reporting deadline.
In December (once current consultation is complete) the XRB will have a mandate to issue climate standards and the framework for climate-related disclosure.
Once the XRB issues its first climate standard, climate-related disclosures will be mandatory for:
- large, listed companies with a market capitalisation of more than $60 million
- large, licensed insurers
- registered banks
- credit unions
- building societies
- managers of investment schemes with more than $1 billion in assets
- some Crown financial institutions (via letters of expectation)
These Climate Reporting Entities (CREs) will be required to make disclosures alongside wider year end reporting in 2023 at the earliest. The XRB is keen to develop consistency within sectors and is encouraging a number of industries to collaborate and analysis various on climate related scenarios.
Given Aotearoa's built environment accounts for approximately 20% of the country's emissions, there is a duty for asset holders, developers, and building stakeholders to reduce emissions and support.
As such, the NZGBC has established a leadership group to support the important work being done by XRB, and to provide guidance on climate scenarios for the construction and property sector.
The members of the leadership group are:
- Dr Alex Thompson - NIWA - General Manager - Research Strategy
- Amanda Whiting – IAG NZ - CEO
- Antonia Watson – ANZ - CEO
- Earl Gasparich – Metlifecare - CEO
- Hamish McBeath - Fletcher Building - Chief Executive of Building Products
- John Dakin – Goodman Property - CEO
- Peter Mence – Argosy Property Trust - CEO
- Phil Littlewood – Stride Property Group – CEO
- Richard Jefferies – Tanui Group Holdings Limited - CFO
Members of the leadership group, as well as other stakeholders, met for the first time on 23 August.
We'll have more to say on the group's work in the months to come