A new law will require banks, insurers and investment managers to report the climate impacts of their businesses and explain how they will manage risks. James Shaw, minister for climate change, introduced the bill to parliament last week.
All banks with total assets of more than NZ$1 billion ($703 million), insurers with more than NZ$1 billion in total assets under management, and all equity and debt issuers listed on the country’s stock exchange will have to make disclosures.
“We simply cannot get to net-zero carbon emissions by 2050 unless the financial sector knows what impact their investments are having on the climate,” Shaw said in a statement. “This law will bring climate risks and resilience into the heart of financial and business decision making.”
The law will affect around 200 of the country’s biggest companies and several foreign firms that meet the NZ$1 billion threshold. Once the law is passed the first reports will be made by companies in 2023.