Climate change
All large listed companies are required to produce climate-related disclosures as part of sustainability reporting. Companies are required to assess their climate risks using scenarios so investors can make informed investment decisions based on how well these companies are managing climate risks.
The External Reporting Board (XRB) sets standards for how companies must disclosures their climate risks - the Aotearoa New Zealand Climate Standards. The XRB allows sectors to develop climate scenarios that all companies in those sectors can use to assess risks. This helps companies to minimise the costs of the climate risk assessment activities.
13 key sectors developed sectoral climate scenarios reports to meet this obligation, with 12 out of 13 reports being publicly available. This reporting has created a wealth of information and insights on the climate opportunities and risks ahead for New Zealand.
The Parliamentary Commissioner for the Environment (PCE) commissioned the Policy Hub to advise on the implications for New Zealand as a whole, based on the publicly available sectoral climate scenarios.
Key findings include:
- On the basis of the scenarios provided, there is no future where New Zealand achieves zero gross emissions by 2050.
- National cross sectoral planning and stability of regulation is needed to support a fair transition that minimises waste and social disruption.
- Fiscal challenges will grow, sectors should not assume that there will be additional taxpayers funding for their transition.
- We should create a national spatial plan to reduce the risks of stranded assets, unnecessary costs and social disruption as a result of climate change.
- We need to explore opportunities to safeguard New Zealand’s long term food security.
- We should consider the implications of climate change for our approach to resilience of supply chains and immigration policy.
You can read the full report on the PCE’s website.