In a move that is believed to be the world’s first, New Zealand has introduced a law that mandates the financial sector to disclose the impacts of climate change on their business.
The Bill is expected to make climate-related disclosures unavoidable for around 200 organisations, including banks, insurers and managers of investment schemes.
Once passed, disclosures will be required for financial years starting from 2022 with the first disclosures expected to be made in 2023.
Climate Change Minister James Shaw said: “There are activities and assets that these businesses are involved in that will not hold their value in a low carbon world, simply because they emit too much climate pollution and contribute to the climate crisis.
“Similarly, there are technologies and activities that will cut emissions and become hugely valuable to the low carbon economy of the future.”