The Financial Markets Authority (FMA) has published its implementation approach for the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill, also known as the CRD bill.
The document sets out how the FMA will enforce and monitor the CRD regime over a roughly four-period, or up to 2025/26. It sets out the roles and responsibilities of the various government agencies, to help the industry understand which agency is responsible for what.
FMA developed this implementation approach in consultation with the Ministry of Business, Innovation and Employment, Ministry for the Environment and the External Reporting Board.
The new legislation, which received Royal Assent last month, will require certain entities, known as climate reporting entities, to produce annual climate statements that identify and report on the impact of climate change on their organisations and disclose their greenhouse gas emissions.
Around 200 financial organisations across New Zealand will be subject to the bill. These organisations are considered by the government to have “a higher level of public accountability” when it comes to combating climate change.
Among those that will be required to submit climate disclosures are large listed issuers of quoted equity securities or quoted debt securities; banks, credit unions, and building societies with total assets over $1 billion; insurers with total assets over $1 billion or annual gross premium revenue over $250 million; and managers of registered schemes with over $1 billion in total assets under management.