Supporting smarter international alignment in climate reporting

11 Jun 2025
2 mins

Chapter Zero New Zealand has responded to the External Reporting Board’s (XRB) request for information on the international alignment of Aotearoa New Zealand’s climate reporting standards.

Our submission supports measured alignment with international frameworks – such as the IFRS S2, issued by the International Sustainability Standards Board (ISSB), and Australia’s AASB S2 – while cautioning against any wholesale replacement of the Aotearoa New Zealand Climate Standards (NZ CS).

Instead, we advocate for incremental improvements that reflect both global developments and the domestic maturity of climate-reporting practice.

READ SUBMISSION

Key messages from the submission:

Trans-Tasman coordination is critical
Entities operating across Australia and New Zealand should not be burdened by duplicative reporting obligations. Mutual recognition and harmonised thresholds would reduce inefficiency, protect market confidence and support capital flows across the Tasman.

Phased, proportional reform is preferred
We recommend a pragmatic, staged approach that builds on the investments already made by reporting entities. This would ease compliance costs and allow time for systems and capabilities to adapt.

Broader alignment, not replication
While the ISSB and EU standards are influential, New Zealand should define its own clear objectives and chart an alignment pathway that best fits its context, supporting decision-useful, credible and comparable disclosures.

Voluntary and supply chain reporting pressures matter
Many entities face growing disclosure demands from customers, investors and global supply chains, beyond regulatory requirements. These should be factored into alignment decisions to ensure relevance and minimise duplication.

As global sustainability standards evolve, we encourage the XRB to prioritise interoperability, proportionality and mutual recognition, ensuring Aotearoa’s climate disclosure regime remains credible, efficient and fit for purpose.

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