Climate statement

The Climate statement is currently available for New Zealand and is mandatory for:

Listed issuer with total market value of equity securities or total face value of quoted debt securities exceeding NZD $60 million
Registered banks, credit unions and building societies with total assets exceeding NZD $1 billion
Licensed insurers with total assets exceeding NZD $1 billion or annual gross premium revenue exceeding NZD $250 million
Managers of registered investment schemes with total assets under management exceeding NZD $1 billion
Specified Crown Financial Institutions by Enduring Letter of Expectations from the Minister of Finance and Minister of ACC with greater than NZD $1 billion in total assets under management

An example Climate statement is included in the Pinnacle Listed IFRS NZ Limited Example Financial Statement (download the example).

The four key areas of disclosure are as follows:

Governance

Identity of the governance body and a description of its oversight of climate-related risks and opportunities
A description of management’s role in assessing and managing climate-related risks and opportunities

Current climate-related impacts: These are the effects that the organisation has already experienced during the current reporting period. It refers to things that were previously seen as risks or opportunities but have now actually happened, creating issues or incidents
Scenario analysis undertaken, including at a minimum a 1.5 degrees Celsius scenario, a 3+ degrees Celsius scenario and a third scenario
Climate-related risks and opportunities over the short, medium and long term
Anticipated impacts of climate-related risks and opportunities: These are climate-related risks and opportunities that could affect the organisation's future financial performance, financial position, and cash flows. It includes a description of the time frames within which these impacts could reasonably be expected to occur. Entities are required to describe the impact in words and provide specific numbers (quantification) if possible
Transition planning: A description of how the entity will position itself as the global and domestic economy transitions towards a low-emissions, climate-resilient future state

A description of the entity’s processes for identifying, assessing and managing climate-related risks
A description of how these processes are integrated into the entity’s overall risk management processes

Metrics for greenhouse gas (GHG) emissions for scope 1, 2 and 3 emissions that are relevant for all entities
Metrics that are relevant to the entity’s industry or business model used to measure and manage climate-related risks and opportunities
Any other key performance indicators
The targets used to manage climate-related risks and opportunities and performance against those targets
GHG emissions standard and consolidation approach used (equity share, financial control or operational control) and the data source of the emission factors and the global warming potential (GWP) rates used
A summary of specific exclusions of sources, including facilities, operations or assets with a justification for their exclusion

To change the orientation of the statement: