CA ANZ supports the XRB’s proposed targeted amendments to NZ CS 1 Climate-related disclosures, which are intended to maintain the effectiveness of the New Zealand climate reporting framework ahead of the proposed transition to NZ IFRS S2. In its submission, CA ANZ supports the proposed exclusions from Category 15 (Investments) Scope 2 greenhouse gas emissions. The amendments align NZ CS 1 with recent changes to IFRS S2 and equivalent Australian Sustainability Reporting Standards, supporting comparability and reducing implementation complexity for entities reporting across New Zealand and Australia.

CA ANZ also supports the XRB’s proposal not to introduce the additional disclosure requirements in IFRS S2 paragraphs 29B and 29C, noting that existing NZ CS 1 requirements already capture information about material exclusions. The submission supports incorporating existing XRB staff guidance on excluding greenhouse gas emissions sources as mandatory application material within NZ CS 1. CA ANZ considers this will provide greater clarity and support consistency in application while preserving the principles-based nature of the standards and the exercise of professional judgement.

CA ANZ supports the proposed effective date of 1 January 2027, with early adoption permitted, and agrees that the benefits of the proposed amendments outweigh the implementation costs. CA ANZ encourages the XRB to continue maintaining alignment with international developments and supports the proposed targeted amendments before the transition to NZ IFRS S2.