New Zealand will establish requirements for climate risk disclosure within the financial sector – the first country to do so in the world.
Over 200 of the largest organizations in the country will be required to make disclosures on governance arrangements, risk management and strategies for mitigating climate change.
Those that are unable to meet disclosure requirements must provide explanations.
«The changes I am announcing today will bring climate risks and resilience into the heart of financial and business decision making,» said James Shaw, New Zealand’s minister for climate change, said in a statement. «It will ensure the disclosure of climate risk is clear, comprehensive and mainstream.»
90 Percent Coverage
The new rules will cover banks and asset managers with over NZ$1 billion ($675 million) as well as crown financial institutions such as ACC (Accident Compensation Corporation) or the NZ Super Fund. Overseas incorporated organizations will also need to meet the disclosure requirements.
The NZ$1 billion threshold is expected to cover around 90 percent of assets under management in New Zealand.
«What gets measured gets managed – and if businesses know how climate change will impact them in the future they can change and adopt low carbon strategies,» Shaw said.
