Feedback is sought on:
- Aotearoa New Zealand Climate Standard 1 (NZ CS 1): Climate-related disclosures
- Aotearoa New Zealand Climate Standard 2 (NZ CS 2): First-time Adoption of Aotearoa New Zealand Climate Standards
- Aotearoa New Zealand Climate Standard 3 (NZ CS 3): General Requirements for Climate-related disclosures
- draft staff guidance for all sectors, and
- draft staff guidance for Managed Investment Scheme managers.
XRB has also released an accompanying discussion document and comparison tables showing the main similarities and differences with the Taskforce on Climate-related Financial Disclosure (TCFD) and the International Sustainability Standards Board (ISSB) draft climate standard. All can be accessed here.
Key areas where XRB has moved position include:
- reporting entities will now be required to report against three scenarios: 1.5 degrees, at least 3 degrees (up from 2 degrees), and one further scenario of the entity’s choosing
- additional disclosure requirements regarding the use of offsets in achieving GHG emissions targets
- removal of the requirement for a separate GHG emissions inventory report
- an exemption from reporting on scope 3 GHG emissions for the first year
- one year exemptions for reporting on current financial impacts, disclosing anticipated financial impacts and disclosing transition plan aspects of strategy
- a staggered introduction of comparative information requirements over the first few reporting years under CS 3, and
- an updated materiality section (in response to extensive feedback).
The timetable from here involves both XRB and the Financial Markets Authority (FMA).
- XRB hosts deep dive webinars covering particular aspects of the proposed system.
- FMA writes to each of the entities it considers will be required to report.
- FMA publishes advice on its expectations of entities’ record-keeping.
- XRB releases the finalised climate standard and guidance in December.
If you have any questions, or would like assistance with a submission, please get in touch.
We are reviewing these documents in detail and will publish a further note.