New climate reports will give investors a different perspective

The Financial Markets Authority (FMA) has published a “What You Need to Know” guide aimed at investors, lenders and other creditors, financial advisers and others who use or communicate climate-related information.

It covers what information climate statements will include, key considerations and context about that information, legislative requirements, and whether the CRD regime will help reduce greenwashing.

The External Reporting Board (XRB) has put out “Navigating Climate Statements”, a more detailed explanation of climate statements highlighting topics such as uncertainty, comparability and context when evaluating and judging the information they contain.

FMA head of auditing, financial reporting and CRD, Jacco Moison, says climate statements will contain information about climate reporting entities' (CREs’) climate risks and opportunities not necessarily covered in financial statements. They will provide a different perspective and tell a type of story to help investors assess the impact climate change could have on a CRE’s business.