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The External Reporting Board (XRB) has opened a request for information (RFI) on the benefits and costs of aligning New Zealand climate reporting with international standards.
The RFI is part of a promised post-Implementation review of the New Zealand Climate Standards, now in their second year under the climate-related disclosures (CRD) regime.
Responses are due by 13 June 2025.
Scope
The re-election of the Albanese Government makes it highly likely that the Australian CRD regime will continue as enacted, with Group 1 Australian reporters now in their first reporting year. For New Zealand climate reporting entities (CREs) - especially dual-listed issuers – this creates an incentive to streamline reporting processes trans-Tasman.
The RFI asks which international standards will be most relevant for CREs to be aligned with, as between the international IFRS climate standards (IFRS S1 and S2), the Australian climate standards (AASB S1 and S2, and the existing GRI Standards.
The RFI also seeks views on compliance costs and the potential for mutual recognition with other jurisdictions.
XRB has signalled that it is open to revising the NZ Climate Standards if reporting entities prefer closer international alignment but wants to ensure that this is achieved as effectively and efficiently as possible. It has published a tool allowing comparison between the Australian and New Zealand requirements.
Feedback will also be sought on the differential reporting proposal that XRB put into the public arena in December 2024 after the Government has decided the reporting thresholds under the regime - decisions that are expected by the end of Q2 2025 and which may reduce the reporting requirements for smaller entities and different classes of entities.
Meanwhile, changes to reporting thresholds for fund managers are also still expected in the Government’s decisions by end Q2 2025, see our recent Funds update here.
Class exemption confirmed for scope 3 assurance
The FMA granted a class exemption on 22 April allowing CREs to defer seeking assurance over scope 3 emissions disclosures for FY25. It was issued to complement the XRB’s new Adoption Provision 8, part of a suite of changes published in November 2024.
The exemption applies only to accounting periods ending before 31 December 2025 and supports the XRB’s publication of Adoption Provision 8 (see below). Entities relying on the exemption are required to lodge a notice confirming that reliance.
If you’d like more information, please contact our experts.
