The final guidance was finalised after a consultation
The Financial Markets Authority has released its final guidance on how the around 200 climate-reporting entities (CREs) can meet their record-keeping obligations under the climate-related disclosures (CRD) regime.
FMA, which is responsible for the independent monitoring and enforcement of the CRD regime, said the guidance outlined the principles as well as the regulator’s expectations on CREs for creating, keeping, and maintaining proper records as evidence that climate statements comply with the Financial Markets Conduct Act (FMCA) and the Aotearoa New Zealand Climate Standards framework.
The climate standards, as set out in the Financial Reporting Act, aimed to provide for, or promote, climate-related disclosures to:
- encourage entities to routinely consider the short-, medium-, and long-term risks and opportunities that climate change presents for the activities of the entity or the entity’s group
- enable entities to show how they are considering those risks and opportunities
- enable investors and other stakeholders to assess the merits of how entities are considering those risks and opportunities.
Providing investors and other stakeholders with publicly available climate statements will enable the market to make more informed decisions around where to allocate capital and contribute to the overall aim of the CRD regime, FMA said in a media release.
The guidance was finalised after the consultation earlier this year. During the formal consultation, 13 submissions were lodged to FMA from a range of stakeholders.
“Responses to the consultation was constructive with most submitters supporting the FMA’s overall approach to the guidance. The FMA has made several amendments to the guidance based on the feedback,” said Jenika Phipps (pictured above), FMA climate-related disclosures manager.
View guidance for keeping proper climate-related disclosure records.
View the summary of key consultation themes and individual submissions.
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