Meridian Energy first to release climate change risk report
22 July 2019
Meridian Energy has released New Zealand’s first corporate report disclosing risks to its business resulting from climate change.
Prepared in accordance with guidance from the Taskforce on Climate-related Financial Disclosures (TCFD), the report lays out the physical risks Meridian faces from a rise in global temperature, as well as the impacts of transitioning to a low carbon future.
Chief Financial Officer Mike Roan says climate change has urgent implications for companies and investors, and the time has come for businesses to be open and honest about the risks they will face.
“Globally, markets and investors have woken up to climate risk. There’s a growing movement to reconsider investments in companies and sectors who are heavily exposed, whether that’s from sea level changes, industry disruption, the uptake of new technology or public policies and legislation.
“Being a strong corporate advocate for climate action means understanding and acknowledging our risks and encouraging others to do the same. It’s the ethical and responsible thing to do for our investors and all New Zealanders,” says Roan.
TCFD reporting also requires companies to report their governance oversight of climate risks, the expected impacts on their business strategy, and targets they use to manage the risks.
Meridian’s report comes ahead of the Embark event in Auckland this week celebrating the one-year anniversary of the Climate Leaders Coalition, where businesses come together to share ideas on how to take positive action to reduce emissions.
Roan says understanding and reporting climate risk will be an ongoing commitment from Meridian and is integral to the company’s work on reducing emissions, supporting accelerated action on renewables and decarbonisation, and engaging staff and suppliers to improve sustainability.
“Risk reporting is now a key part of our broader climate action programme and we’re ready to help others understand the very real risks climate change poses for businesses and organisations.
“The more New Zealand businesses understand the climate risks they face and report openly about them, the better equipped and capable investors are to make sound decisions,” Roan says.
Meridian’s full report can be found here.