The XRB has proposed to amend NZ CS 2 Adoption of Aotearoa New Zealand Climate Standards by extending the adoption provisions.

Our submission acknowledged the significant effort that has gone into the first year of mandatory reporting by climate reporting entities (CREs). We shared with the XRB that we had heard mixed views from members on delaying some of the certain climate-related disclosures, with some members raising concerns that there may be unintended consequences, such as the de-prioritisation of the establishment of the relevant internal systems and data collection processes.

Members also noted that the rationale provided by the XRB as the basis for extending the transition periods are unlikely to be resolved in 12 months’ time.

If the XRB chooses to adopt the proposals, we encouraged them to use the time to produce the necessary guidance while encouraging early implementation.

While acknowledging that this is outside of the scope of the XRB’s mandate, we encouraged the XRB to advocate to the Government for a safe harbour provision for directors in relation to the key disclosures within the CRD regime.