Objective

The three standards establish a mandatory framework for climate-related disclosures in New Zealand, enabling primary users to assess entities’ climate risks and opportunities and supporting capital allocation to a low-emissions, climate-resilient economy.

Scope

The framework applies to entities captured under the Financial Markets Conduct Act 2013, covering listed issuers, large financial institutions, and managed investment schemes. Voluntary adoption is encouraged for others. Interim periods are excluded.

Governance

Entities must disclose which governance body oversees climate-related risks and opportunities, how it ensures necessary competencies, and how climate factors are integrated into strategy, metrics, and remuneration. Management responsibilities, organisational structures, and engagement with governance must also be explained.

Strategy

Disclosures cover current and anticipated impacts, scenario analysis with at least three scenarios (including 1.5°C and 3°C or greater), identified risks and opportunities, financial impacts, and transition planning. Entities must explain how these factors influence strategy, capital deployment, and positioning for a low-emissions transition.

Risk management

Entities must describe processes for identifying, assessing, and managing both physical and transition risks, including methods, tools, time horizons, exclusions, and integration into overall risk management systems.

Metrics and targets

Mandatory metrics include scope 1–3 GHG emissions, intensity, risk exposures, capital allocation, internal carbon pricing, and climate-linked remuneration. Entities must disclose targets, interim milestones, base years, progress, and reliance on offsets. Scope 3 disclosure can be phased in, with exemptions for early reporting periods.

Assurance

All GHG disclosures must undergo assurance. Limited assurance is the minimum requirement, with scope 3 assurance mandatory from accounting periods ending on or after 31 December 2025.

Principles and materiality

Fair presentation requires disclosures to be balanced, accurate, and complete without immaterial detail. Principles guiding information include relevance, accuracy, verifiability, comparability, consistency, and timeliness. Presentation principles emphasise understandability and coherence. Materiality applies across all requirements, defined as information that could reasonably influence user decisions.

Comparatives and methods

Entities must disclose comparatives for two prior periods, explain methodological changes, and restate errors. Transparent disclosure of methods, assumptions, uncertainties, and limitations is required for both scenario analysis and GHG calculations.

Adoption provisions

NZ CS 2 provides phased exemptions, including delayed disclosure of current and anticipated financial impacts, transition planning, scope 3 emissions, comparatives, and trend analysis. These provisions apply mainly to the first two to four reporting periods, recognising the capability-building period required.

Statement of compliance

Entities must include an explicit statement of compliance with Aotearoa New Zealand Climate Standards, even when adoption provisions are applied.