A recent article appearing in the Property Professional Magazine (Garner, G. O., & Kuczynska, P. Climate Change: A Challenge for Valuers? Autumn 2022 edition), highlights the swiftly emerging issues around climate change - being one most people would agree is increasingly commanding the attention of regulators, the media, environmentalists and the general public. Equally, it is an evolving matter demanding earnest consideration by New Zealand businesses.
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 amended the Financial Markets Conduct Act 2013 (FMC Act), the Financial Reporting Act 2013, and the Public Audit Act 2001. The new requires around 200 large financial institutions covered by the FMC Act to start making climate-related disclosures. Affected organisations are required to publish disclosures from financial years commencing on or after 1 January 2023, in accordance with climate standards published by the External Reporting Board (XRB). Environment.govt.nz/climate-change/mandatory-climate-related-financial-disclosures
New Zealand climate standards NZ CS 1, NZ CS 2 and NZ CS 3 are based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). XRB/standards/climate-related-disclosures
In June 2023, the International Sustainability Standards Board (ISSB) issued two IFRS® Sustainability Disclosure Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. IFRS/sustainability/knowledge-hub/
ISSB will take over the responsibility of the Task Force on Climate-related Financial Disclosures (TCFD) in July 2024.
Resources
We are compiling a list of valuable resources for property professionals as a start to help guide you through the minefield that involves climate change risk reporting.
Please note all information and resources provided here are subject to review and can be changed by guidance papers coming available through the Property & Valuation Standards Board.
Next review is due January 2025.
Useful Websites
The New Zealand Government is committed to making government office buildings energy efficient. Energy Efficient Buildings
NABERSNZ rating is compulsory for NZ Government Properties owned & leased (from 01/01/2021). Nabersnz
