{"id":92886,"date":"2025-10-21T21:21:08","date_gmt":"2025-10-21T21:21:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/92886\/"},"modified":"2025-10-21T21:21:08","modified_gmt":"2025-10-21T21:21:08","slug":"government-halves-pool-of-companies-that-need-to-make-climate-related-disclosures","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/92886\/","title":{"rendered":"Government halves pool of companies that need to make climate-related disclosures"},"content":{"rendered":"
The rules applicable to banks, credit unions, building societies and insurers will remain the same.<\/p>\n
Altogether, the number of entities expected to be required to make climate-related disclosures is expected to fall from 164 to 76.<\/p>\n
The point of mandatory reporting is to prompt businesses to consider the effects of climate change in their operations \u2013 including their investment decisions.<\/p>\n
Commerce and Consumer Affairs Minister Scott Simpson said that while the regime\u2019s intentions were solid, the rules were too onerous and may be deterring companies from listing on the NZX.<\/p>\n
He also wants to loosen the regime, so directors will no longer be personally liable if their companies break the rules. <\/p>\n
Under the proposed changes, reporting companies will not have to show the same level of evidence for climate disclosures as they do for financial disclosures. <\/p>\n
\u201cThis recognises that climate reporting involves future-focused and uncertain information, unlike financial reporting, which draws on historical information,\u201d Simpson said.<\/p>\n
The changes will be included in the Financial Markets Conduct Amendment Bill, which is expected to be passed next year.<\/p>\n
Rules around investments in unlisted assets strengthened<\/p>\n
Separately, Simpson said he would require fund managers, including KiwiSaver providers, to be more transparent about the investments they made.<\/p>\n
They would have to disclose whether investments were in listed or unlisted assets, and New Zealand or offshore assets. <\/p>\n
\u201cThe current lack of visibility makes it hard for investors to see how and where their savings are invested,\u201d Simpson said. <\/p>\n
\u201cGreater transparency is an important step towards increased private asset investment. Globally, more capital is moving into unlisted assets, and we are seeing the same trend here. Better information will help investors understand these opportunities.\u201d<\/p>\n
Jen\u00e9e Tibshraeny is the Herald\u2019s Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.<\/p>\n