In July the External Reporting Board (XRB) released their final consultation document on the Climate-related Disclosures. XRB have released exposure drafts of the three proposed standards that will for the climate-related disclosure framework.
The three documents are:
- NZ CS 1 – Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures,
- NZ CS 2 – Aotearoa New Zealand Climate Standard 2: First-time Adoption of Aotearoa New Zealand Climate Standards and
- NZ CS 3 – Aotearoa New Zealand Climate Standard 3: General Requirements for Climate-related Disclosures.
Alongside the framework XRB have also released draft guidance documents which are intended to support users in their preparation of disclosures under the new framework and a comparison of the New Zealand framework with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations and the International Sustainability Standards Board’s draft climate standard.
Licensed insurers with more that $1 billion of assets or annual premium revenue in excess of $250 million will be required to prepare climate-related disclosures. Large banks, credit unions, building societies, investment managers and large listed companies will also be required to disclose.
The first disclosures are required for the financial reporting periods commencing on or after 1 January 2023.
XRB are seeking feedback on the exposure drafts by 26 September 2022 so that they can issue the drafts as final standards in December 2022. The Sustainability Interest Group are intending to respond to the consultation. If you have any specific comments on the consultation that you would like included in NZSA’s response please contact Darren Fleming.