Sustainable finance taxonomy for New Zealand

A sustainable finance taxonomy is a framework for classifying economic activities according to their environmental performance, and can help investors identify and invest in activities which are sustainable.

Developing a sustainable finance taxonomy for New Zealand will give investors and everyone interacting with the market clarity and confidence on which economic activities are 'green', 'transition' or sustainable. This can help us move to a low emissions economy.

In 2024, the Minister of Climate Change received non-binding advice and recommendations from the Independent Technical Advisory Group (ITAG) via Toitū Tahua - the Centre for Sustainable Finance. This advice detailed options for the design of a credible sustainable finance taxonomy that is fit for New Zealand's economy and financial market.

See the ITAG's advice. [Centre for Sustainable Finance website]

Based on these recommendations, the Minister of Climate Change agreed to continue developing the taxonomy and work with Toitū Tahua - the Centre for Sustainable Finance.

Work on New Zealand's taxonomy commenced with the development of climate mitigation, adaptation and resilience criteria for the agriculture and forestry sectors through an independent advisory function made up of a taxonomy Technical Expert Group and a forestry and agriculture Technical Advisory Group. This independent advisory function is coordinated by Toitū Tahua - the Centre for Sustainable Finance.

Over the next 12 months, the taxonomy will expand to develop climate mitigation, adaptation and resilience criteria for the energy and the building and construction sectors.  

As part of the independent function, Toitū Tahua - the Centre for Sustainable Finance will lead public consultation on criteria development as well as recruitment for the sector specific Technical Advisory Group.

See more about New Zealand's sustainable finance taxonomy including how to register for taxonomy updates. [Centre for Sustainable Finance website]