The Economic Development, Science and Innovation Committee called for submissions on the Financial Sector (Climate-related disclosures and other matters) Amendment Bill.
Key points from our submission include:
- CA ANZ continues to be an advocate for, and supporter of, appropriate climate-related financial disclosures and reporting for decision-making. The accountancy profession is ready and able to play a key role in ensuring transparency and appropriate disclosure of climate related risks and opportunities, which will help to maintain financial stability and facilitate New Zealand’s transition to a more sustainable future.
- We support the External Reporting Board (XRB) taking on the role of developing climate reporting standards, particularly as this aligns with the work being undertaken by the International Financial Reporting Standards (IFRS) Foundation which is developing a climate-related financial disclosure standard.
- Independent professional assurance of external reporting is an integral part of an effective reporting framework. We emphasise the importance of the assurance engagement being conducted by appropriately skilled, independent and qualified practitioners who are part of a regulated profession, and the need for the assurance engagements to be carried out and reported on in accordance with an internationally accepted assurance framework. Both aspects are critical to achieving a level of assurance that provides integrity, is understandable by users of the reporting, and is comparable between entities.