Reporting would be against a standard that would be issued by the External Reporting Board. The standard would be developed in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures (June 2017)
The TCFD recommendations are structured around four thematic areas that represent core elements of how organisations operate.
- risk management
- metrics and targets (see recommended disclosures section).
The recommendations are considered international best practice for climate-related financial reporting and are already being used in New Zealand and other countries on a voluntary basis.
The External Reporting Board (XRB) will prepare, consult on and issue new reporting standards for businesses required to disclose.
Elements of the disclosures relating to greenhouse gas emissions would be required to have independent assurance.
The Financial Markets Authority (FMA) would be responsible for independent monitoring, reporting and enforcement of the regime.