New Zealand’s Financial Markets Authority (FMA) is currently seeking feedback on a proposal to exempt certain climate reporting entities (CREs) from the requirement to include a link to their climate statements in their annual report. If approved, this exemption would waive climate reporting entities’ requirements to include their climate statements in their annual reports, and instead file them separately within four months of their balance date. The country’s Financial Markets Conduct (FMC) Act currently requires CREs to lodge their climate statements within four months after their balance date. In October 2021, New Zealand became the first country globally to pass climate reporting legislation when the FMC was amended to introduce mandatory climate-related disclosures for certain organisations. However, due to other reporting obligations, some CREs are struggling to have their climate reports ready to be included in their annual reports as they have only three months instead of the intended four-month timeframe to meet the requirements. As a result, the FMA is considering granting exemptions to address this issue. The regulator has also proposed that this relief should be available for a two-year period, recognising that the exemption is a temporary measure outlined in the consultation paper. The regulator is currently accepting feedback on the exemption proposals until 7 August, and after considering submissions the FMA will finalise its policy proposals and plans to get the exemption in place as soon as possible.
If approved, the exemption would waive the requirement for climate reporting entities to include their climate statements in their annual reports, and instead file them separately within four months of their balance date. @FMAmedia https://t.co/oEhUdwsRjO
— Regulation Asia (@RegulationAsia) July 11, 2023