On April 13, 2021, the Government of New Zealand announced the introduction of legislation that would make climate-related disclosures aligned with the Recommendations of the Task-Force on Climate-related Financial Disclosures (TCFD) mandatory for certain financial services organizations, as well as all equity and debt issuers listed on the NZX. This mandatory reporting regime is both robust and broad – the first of its kind – and other countries around the world may soon follow suit.
The Government views the proposed law as a significant step toward realizing New Zealand’s ambitious climate agenda. According to Climate Change Minister James Shaw, “We simply cannot get to net-zero carbon emissions by 2050 unless the financial sector knows what impact their investments are having on the climate. This law will bring climate risks and resilience into the heart of financial and business decision making.”
We summarize key aspects of the proposed law in this Blog Post.