New Zealand’s XRB issues guidance for climate-related financial disclosures
The New Zealand External Reporting Board (XRB) has addressed the need for coherence between climate reporting and financial statements. The newly published guidance is designed for Climate Reporting Entities, offering insights into how New Zealand’s accounting standards apply to climate-related matters in financial statements.
Mandatory climate-related disclosures in New Zealand primarily target large listed companies, banks, insurers, credit unions, building societies, and investment scheme managers. The guidance aims to assist these Climate Reporting Entities in providing transparent and comprehensive insights into the impact of climate-related matters within their financial statements.
The guidance aids entities in articulating how climate change matters can also be relevant to financial statements – namely, when climate-related information is material. This could, for example, include asset impairment caused by planned shifts to net-zero. Emphasising coherence between financial statements and climate disclosures, the publication underscores that they are complementary and should be cross-referenced where appropriate. While acknowledging areas of connection, it also outlines valid reasons for divergences, given the distinct purposes of the two reporting types.
Read the guidance here.
