We're excited to announce a significant addition to our diginexESG framework library—the integration of the Aotearoa New Zealand Climate Standards. This inclusion elevates our collection to a comprehensive selection of 15 frameworks, marking a milestone in our commitment to supporting sustainable practices.
Key Highlights of the Aotearoa New Zealand Climate Standards:
Specifically tailored for corporations and financial entities in New Zealand, encompassing banks, insurers, and investment firms. Directs efforts towards enhancing transparency and precision in reporting climate-related risks and impacts, crucial for informed decision-making.
Mandatory Requirements:
This standard is mandatory for certain entities from January 1, 2023, aligning with the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021. Over 200 of New Zealand's most significant economic entities fall under this regulatory scope.
Voluntary Adoption:
In addition to mandatory compliance, these standards extend a valuable framework for voluntary reporting on sustainability and climate-related risks. This extension applies to a broader range of companies, fostering a culture of responsible reporting beyond legal mandates.
Introduction to the Aotearoa New Zealand Climate Standards
The Aotearoa New Zealand Climate Standards are strategically designed to steer capital allocation toward activities aligning with a low-emission, climate-resilient future. These standards were instituted following New Zealand's government legislation mandating climate-related disclosures for specific entities.
Issued on December 14, 2022, by the External Reporting Board under section 12(aa) of the Financial Reporting Act 2013, the framework comprises three interconnected standards:
- NZ CS 1: Contains climate-related disclosure requirements across four thematic areas: Governance, Strategy, Risk Management, Metrics, and Targets, along with assurance requirements for greenhouse gas emissions disclosures.
- NZ CS 2: Offers optional adoption provisions for entities to consider.
- NZ CS 3: Encompasses principles, underlying concepts like materiality, and general requirements.
Our software seamlessly integrates the essential metric-based information from NZ CS 1 and provisional guidance from NZ CS 2. However, it's important to note that it does not encompass the optional principles and supplementary concepts of NZ CS 3, as these aren't exclusively metric-related.
Stay tuned for more insights and updates on the transformative impact of climate standards on corporate responsibility.
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