Dealing with climate change affects everyone – which is why the government is planning on requiring companies to disclose any of their climate change risks to shareholders.

Climate Change Minister James Shaw said that he plans to introduce legislation to Parliament that will require companies to make any climate change risks to their businesses known to their shareholders, including stranded assets.

“The ability for businesses to understand these risks and therefore act upon them will assist New Zealand’s long-term transition to a low-emissions country,” Shaw said, as reported by NZ Herald.

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Shaw is not alone in his concern over climate change risks, as the Insurance Council of New Zealand (ICNZ) is also calling for tighter climate change regulations.

Shaw believes that better provision of information can help financial markets effectively price in climate change risks and safeguard the country’s financial stability.

“New Zealand needs to be in step with these international trends to ensure we are best prepared for climate change, so we are leaving the most stable environment for our kids and grandkids possible,” he said.