17 April 2021

New Zealand Introduces Mandatory Climate Disclosure Law

Mayer Brown


Mayer Brown is a distinctively global law firm, uniquely positioned to advise the world’s leading companies and financial institutions on their most complex deals and disputes. We have deep experience in high-stakes litigation and complex transactions across industry sectors, including our signature strength, the global financial services industry.
On April 13, 2021, the Government of New Zealand announced the introduction of legislation that would make climate-related disclosures aligned with the Recommendations of the Task-Force...
New Zealand Finance and Banking
To print this article, all you need is to be registered or login on

On April 13, 2021, the Government of New Zealand announced the introduction of legislation that would make climate-related disclosures aligned with the Recommendations of the Task-Force on Climate-related Financial Disclosures (TCFD) mandatory for certain financial services organizations, as well as all equity and debt issuers listed on the NZX. This mandatory reporting regime is both robust and broad – the first of its kind – and other countries around the world may soon follow suit.

The Government views the proposed law as a significant step toward realizing New Zealand's ambitious climate agenda. According to Climate Change Minister James Shaw, "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. This law will bring climate risks and resilience into the heart of financial and business decision making."

We summarize key aspects of the proposed law in this Blog Post.

Covered Entities

The law would require approximately 200 entities in New Zealand to disclose climate-related information, including:

  • All registered banks, credit unions, and building societies with total assets of more than NZ$1 billion;
  • All managers of registered investment schemes with greater than NZ$1 billion in total assets under management;
  • All licensed insurers with greater than NZ$1 billion in total assets under management or annual premium income greater than NZ$250 million; and
  • All equity and debt issuers listed on the NZX.

Reporting Requirements

New Zealand's External Reporting Board (XRB) will issue disclosure standards in line with the TCFD Recommendations. The TCFD Recommendations require climate-related disclosures in four principal areas:

  • governance;
  • strategy;
  • risk management; and
  • metrics and targets.

The XRB will consult on specific reporting standards, while New Zealand's Financial Markets Authority will be responsible for independent monitoring, reporting and enforcement of the new regime.

Implementation Timeline

The proposed law will be introduced through an amendment to the Financial Markets Conduct Act (2013). If approved by Parliament, financial entities could be required to make climate-related disclosures with respect to the 2022 financial year in 2023, at the earliest. The proposed law will receive its first reading in Parliament this week.

Visit us at

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More