Climate-related Disclosures regime
Certain large entities are now 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 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.
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.
CREs are required to lodge climate statements or exemption notices 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 2023 will be the first to file their climate statements which are due by 30 April 2024.
Which entities are Climate Reporting Entities (CREs)
Around 200 entities in New Zealand will be required to prepare and lodge climate statements or exemption notices. CREs are a subset of FMC reporting entities, and include:
- Large registered banks, credit unions, and building societies
Those with total assets of more than $1 billion.
- Large managers of registered investment schemes (other than restricted schemes)
Those with greater than $1 billion in total assets under management.
- Large licensed insurers
Those with greater than $1 billion in total assets or annual gross premium income greater than $250 million.
- Large listed issuers of quoted equity securities or quoted debt securities
An equity issuer is large if the market price or fair value of all of its equity securities exceeds $60 million and a debt issuer is large if the face value of its quoted debt exceeds $60 million. Issuers listed on growth markets are excluded from the climate reporting entity definition.
The thresholds for each entity are calculated as at the balance date of their 2 preceding accounting periods. These thresholds will be amended from time to time to reflect the movements in the consumers price index.
Climate reporting standards
Each climate statement needs to follow the reporting standards that have been set by the External Reporting Board (XRB).
Lodging climate statements with the Companies Office
The Registrar and the Companies Office are responsible for maintaining an online register of climate statements – the Climate-related Disclosures Register – and collecting the related fees and levies. CREs will lodge their climate statements and exemption notices by uploading them to the register.
Independent monitoring and enforcment of the regime
The Financial Markets Authority (FMA) is the regulator - providing guidance about compliance expectations and reporting on monitoring activities and findings. For more information, including how to identify if your organisation is impacted by this new regime, please visit the FMA website.
More information is on our website
We have published guides to using the register on our website. Using these guides you can learn how to search the register and if you’re a climate reporting entity how to lodge climate statements and exemption notices.