RBNZ Supports Proposals To Strengthen Climate-Related Disclosure

The Reserve Bank of New Zealand – Te Pūtea Matua continues to strongly support the External Reporting Board’s (XRB) plans to develop disclosure as a tool to understand and mitigate climate-related financial risks.

The XRB is the independent Crown Entity responsible for developing and implementing accounting, auditing and assurance, and climate standards for New Zealand.

“We welcomed the opportunity to make a submission on XRB’s Climate-Related Disclosure Consultation,” says Assistant Governor/General Manager Strategy, Governance and Sustainability Simone Robbers.

“We would like to congratulate XRB on their document – the framework reads as accessible, logical and balanced. It is also world leading in terms of moving our financial system participants to a mandatory climate-related disclosure regime.”

“As mandated in our legislation, protecting and promoting the stability of New Zealand’s financial system is one of our objectives. Climate-related risks will have a significant effect on New Zealand’s economy and financial system, therefore we are a strong supporter of XRB’s work in implementing climate-related disclosures.”

Cross-agency collaboration is crucial to address the challenge that climate change poses for the financial system. RBNZ is engaging closely with XRB and other financial regulators and will continue to do so. We recognise the importance of ensuring that any guidance or expectations we issue are aligned with what the XRB covers in their reporting standard and what New Zealand’s conduct regulator, the FMA, is charged with overseeing.

“We welcome the transitionary approach taken by XRB which will encourage all climate reporting entities to just get started,” says Ms Robbers. “Our goal is to see entities manage their own climate-related risks in a transparent manner that ensures these risks and opportunities are incorporated into business decisions and long-term strategies.”

ENDS

More information

• RBNZ Submission on the External Reporting Board's Draft Standards on Strategy and Metrics and Target
• Te Kāwai Ārahi Pūrongo Mōwaho – External Reporting Board
• Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1)
• Reserve Bank responds to climate consultations
• Climate Changed and Beyond 2021

Media contact:
Emily Laws
External Communications Adviser
DDI: +64 4 471 3926
Email: Emily.Laws@rbnz.govt.nz

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