XRB Update On Climate-related Disclosures Mahi
Kei te rangatira, tēnā koe.
The External Reporting Board (XRB) is excited about the rewarding challenges ahead of us in 2022. We are beginning the year by publishing a summary of feedback received following our consultation on the Governance and Risk Management draft we released in October last year.
Our anticipated timeline for the climate-related disclosure framework is set out below. However, we are mindful of the challenges Covid-19 can present, as well as the fast-moving international landscape. In particular, we are anticipating the International Sustainability Standards Board (ISSB)’s draft climate standard in late March.
Sector-specific scenario construction
The strategy section of Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1) will require climate reporting entities (CREs) to disclose the scenarios used to test the resilience of their strategy. The XRB will not provide scenarios; however, we are recommending for efficiency and comparability across sectors, that CREs work with others in their industry or sector to construct sectoral climate scenarios. We are working with relevant bodies to determine who is interested in facilitating this work going forward, noting that the marine, tourism and insurance sectors are already working together to develop scenarios. We recommend that all CREs get involved with others in their sector to help to prepare themselves for the disclosure requirements. We are currently preparing a ‘getting started’ guide for scenario analysis at a sector level and are currently testing this with key stakeholders.
Consultation on Strategy, and Metrics and Targets
The XRB intends to publish the consultation document on the Strategy, and Metrics and Targets sections of NZ CS 1 on 16 March 2022. During the next consultation period, there will be several formal and informal opportunities for you to contribute to the development of the standards, including via participating in presentations and webinars. If your organisation is keen to facilitate a possible opportunity for us to present to a large group, please email us on climate@xrb.govt.nz.
