Gearing up for climate reporting in 2024
From early in 2024 certain large organisations will be required to prepare annual climate statements and lodge them with the Companies Office.
In recognition of the ongoing impact that climate change has on New Zealand the Government has introduced a requirement for large entities to prepare and lodge annual climate-related disclosures (climate statements). These entities are called Climate Reporting Entities (CREs) under the Financial Markets Conduct Act 2013.
CREs will be required to lodge climate statements with the Registrar of Financial Service Providers within 4 months after the balance date of the entity. CREs with a balance date of 31 December will be the first to file their climate statements.
Which organisations are Climate Reporting Entities (CREs)
An entity will be considered a CRE in respect of an accounting period if it meets an asset- or revenue-based threshold for each of their 2 preceding accounting periods. The thresholds are:
- Listed issuers that have equity or debt securities exceeding $60 million
- Registered banks, credit unions and building societies that have total assets exceeding $1 billion
- Licensed insurers that have total assets exceeding $1 billion or total premium revenue exceeding $250 million
- Managers of investments schemes that have total assets (in respect of all the schemes) exceeding $1 billion.
About 200 entities are expected to meet these thresholds at this stage.
Aotearoa New Zealand Climate Standards
The External Reporting Board (XRB) has published the Aotearoa New Zealand Climate Standards to support the new reporting regime . The aim of requiring CREs to consider and report on climate-related risks and opportunities is to encourage a transition to a low-emissions future.
Lodging climate statements with the Companies Office
We are preparing to accept, and make publicly viewable, climate statements from early 2024. These climate statements will show that CREs have engaged with their climate-related reporting obligations and allow customers and investors to make informed decisions as New Zealand transitions to a sustainable low-emissions economy.
Independent monitoring and enforcment of the regime
The Financial Markets Authority (FMA) is the regulator and will provide guidance, monitoring and enforcement. For more information, including how to identify if your organisation is impacted by this new regime, please visit the FMA website.