CPA Australia Warns Climate Disclosure Rollback Risks Leaving New Zealand Unprepared For Global Market Expectations

Auckland, New Zealand - 24 October 2025 - One of the world's largest accounting bodies has warned that the Government's decision to halve New Zealand's climate disclosure requirements could create systematic knowledge gaps and leave New Zealand professionals less prepared for international market expectations.

CPA Australia acknowledges the Government's October 22 announcement regarding adjustments to New Zealand's climate-related disclosure requirements, but as the professional body representing accountants who both prepare and assure sustainability information, has raised concerns about the unintended consequences of reducing the reporting universe from 164 to 76 entities.

"The first year of climate reporting has revealed legitimate implementation challenges and cost pressures for some entities, and CPA Australia recognises that proportionate requirements are important for maintaining New Zealand's capital markets competitiveness," said Patrick Viljoen FCPA, ACMA, CGMA, Sustainability Leader, CPA Australia.

"However, we must consider the long-term implications for professional capability development and policy infrastructure. The accounting and finance profession is building critical sustainability reporting and assurance capabilities that will be essential as global standards evolve.

"Limiting opportunities for practitioners to develop and refine these skills could leave New Zealand professionals, and the businesses they advise less prepared for international expectations."

Major trading partners including Australia, the EU, Singapore, and Japan are implementing similar requirements. New Zealand businesses will increasingly need sustainability reporting capabilities to compete in global markets and attract international investment, regardless of domestic regulatory requirements.

Mr Viljoen said effective climate and sustainability policy depends on comprehensive, consistent data to measure progress and assess impacts.

"Reducing the reporting universe by more than half risks creating systematic knowledge gaps that could hinder evidence-based policymaking over time," he said.

"As New Zealand works toward its climate commitments, policymakers need adequate data to track the economy's transition, identify emerging risks, and design targeted interventions. The current proposal may provide short-term cost relief but at the expense of long-term policy effectiveness."

CPA Australia remains committed to supporting high-quality sustainability reporting that serves both business competitiveness and the public interest, and stands ready to work with government, standard setters, and the business community to develop an approach that balances immediate cost concerns with long-term capability and data infrastructure needs.

"The accounting profession has a critical role to play in New Zealand's climate transition. We must ensure our approach today doesn't limit our capabilities tomorrow," Mr Viljoen said.

© Scoop Media