Tuesday, June 18, 2024

RBNZ backs proposals to strengthen climate-related disclosure

The Reserve Bank of New Zealand – Te Pūtea Matua says it 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 (pictured).

“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.”

Ms Robbers said cross-agency collaboration is crucial to address the challenge that climate change poses for the financial system.

She said 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.

“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,” says Ms Robbers.

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