&Bloom's New Zealand Climate Standards Toolkit

6 May 2024

The New Zealand Climate Standards (NZCS) Toolkit, based on guidance from the External Reporting Board (XRB), supports entities in adopting climate-related disclosure standards. It provides a question directory, principles, and a glossary to facilitate compliance. Emphasising judgement over a checklist approach, it aims to prepare stakeholders for effective climate reporting.

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OVERVIEW

The New Zealand Climate Standards (NZCS) Toolkit was developed by &BLOOM using guidance from the External Reporting Board (XRB). It is designed to assist organisations in adopting and complying with the Aotearoa New Zealand Climate Standards (NZCS). These standards provide a framework for climate-related disclosures, helping entities align with regulatory requirements and improve transparency.

The toolkit is structured into three components: a question directory, principles, and a glossary. The directory translates disclosure requirements into practical questions to simplify the adoption process. The principles outline general requirements and emphasise fair presentation and clear reporting. The glossary defines key terms used within the NZCS, ensuring consistent understanding among users.

This resource is targeted at organisations, investors, and other stakeholders involved in climate-related reporting. Finance professionals, in particular, can benefit from the toolkit by using it to evaluate and enhance their organisation’s compliance with NZCS requirements. It provides clarity on necessary disclosures and supports the preparation of detailed, standard-aligned reports.

The NZCS Toolkit highlights the importance of applying professional judgement rather than treating the standards as a checklist. This approach enables entities to determine the relevance and adequacy of the information disclosed, ensuring alignment with the intended objectives of the NZCS.

The standards apply to annual reporting periods commencing on or after 1 January 2023. The requirement for assurance of greenhouse gas emissions disclosures will begin for reporting periods ending on or after 27 October 2024. The toolkit equips users with the insights needed to meet these deadlines effectively.

For finance professionals, the toolkit offers practical support in navigating complex climate reporting requirements. It aids in assessing compliance, fostering transparency, and enhancing stakeholder confidence in an organisation’s climate-related initiatives.