Aotearoa New Zealand Climate Disclosure Must Meet Global Best Practice: New Report
Reporting standards for New Zealand's landmark climate disclosure should match emerging global best practice, according to IGCC's latest report.
Matching leading climate disclosure practice will help ensure New Zealand's competitiveness in global capital markets.
Based on leading international practice, and the opportunity to attract international capital:
- New Zealand’s rules should require the reporting of emissions across the entire value chain, including Scope 3,
- Companies, banks and investors should expect increasing demands on assurance over reporting,
- New Zealand should require integration of climate risk and opportunity reporting into financial statements, and
- Firms should report their contribution to climate change in addition to their exposure to it (known as double materiality).
New Zealand's regulator, The External Reporting Board, is set to soon release their thinking on the complex and contested elements of the country's forthcoming reporting standards. This report will help our members in New Zealand and Australia understand global leading practice.
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand investors focused on the impact that climate change has on the financial value of investments and the opportunities created by the transition to net zero emissions. IGCC represents institutional investors with total funds under management of approximately $2.7 trillion in Australia and New Zealand and $33 trillion around the world, and others in the investment community interested in the impact of climate change. IGCC members cover over 7.5 million people in Australia and New Zealand.