With the second year of climate reporting nearly complete, speakers at this year’s Climate Change and Business Conference discussed how the disclosure regime is shaping business, governance and market expectations.

New Zealand led the way in climate reporting, being one of the first countries to mandate climate-related financial disclosures. As with any new regime, there have been early challenges.

Following the Government’s recent announcement to raise the mandatory climate reporting threshold from $60 million market capitalisation to $1 billion, and to remove managed investment schemes from the regime, it is timely to reflect on the climate reporting conversation in Aotearoa New Zealand.

Alignment and Resourcing Remain Key

A major theme at the conference was the rapid internationalisation of climate disclosure requirements. Over 80% of New Zealand’s exports go to markets that already use or plan to use robust climate reporting regimes. Panellists noted that aligning with international standards is now essential for market access.

While the first year of reporting was challenging and resource intensive, most agreed the second year was smoother and faster. The focus is shifting from compliance to opportunity.

Speakers encouraged organisations to build internal capability rather than rely on external consultants. Where entities have invested in in-house expertise and sector-level scenario analysis, these efforts are now delivering value at the governance level.

Enabling a Broader Perspective

Panellists observed that the regime is quickly becoming a driver of boardroom decision-making. As user perspectives evolve, disclosures are deepening understanding of climate-related risks across organisations. This shift is prompting consideration of opportunities, not just risk avoidance, and is increasing engagement at board and executive levels. While compliance prompted initial steps, climate disclosures are now supporting strategic transformation.

Challenges remain, including harmonising reporting standards, addressing scope 3 greenhouse gas emissions and aligning with overseas requirements such as those set by the AASB in Australia.

Investors at the conference made it clear that strong disclosure practices are now linked to better ESG ratings, which are important for attracting capital. One speaker described climate disclosures as “hygiene information”—essential, but only the starting point for real climate action and business innovation. Speakers stressed that reporting must go hand-in-hand with tangible action. As one panellist noted, “There’s not much point in climate action if you’re not reporting on it,” highlighting the close link between transparency and progress. The business community now expects credible reporting to drive meaningful reductions in GHG emissions and support business resilience.

With the second year of reporting almost complete, many climate reporting entities are considering how robust, transparent reporting can support business success. Despite recent changes, we hope this momentum continues.