Climate related financial disclosures are here to stay. Other countries are moving to taxonomies and disclosures in the competition for markets. If New Zealand stands still, we will fall behind. We need to make it easy for potential foreign direct investment to engage, and our exporters need to be fit for the markets they are targeting.
The Centre for Sustainable Finance: Toitu Tahua took the opportunity to comment on the External Reporting Board’s (XRB) consultation on the governance and risk management section of the Climate-Related Disclosures (CRD).
Key points from the submission:
- Recommended that XRB guidance includes ensuring preparation of disclosures that are easily understood and accessible by secondary users, alongside primary users.
- Suggestion to broaden the objective of the disclosures to include enabling primary users to understand the process to engage stakeholders in planning for a net-zero transition, alongside role an entity’s board plays in overseeing climate-related issues and the role of management in assessing and managing those issues.
