New Zealand Equity Monthly September 2024

New Zealand Equity Monthly September 2024

By Mei Zi Ho, Research Analyst Nikko AM

Nikko AM NZ issues its first climate report under new disclosure regime in July

Nikko Asset Management New Zealand (Nikko AM NZ) released its first annual “climate statement” under New Zealand’s new climate-related disclosures regime in July. The framework requires approximately 200 organisations, including large publicly listed companies, to release reports on how their activities may impact the climate and the effect of the climate on their businesses. The first annual reporting periods for the disclosures began in January 2023. Covered entities, including Nikko AM NZ, are required to report based on standards issued by New Zealand’s External Reporting Board. As an asset manager, Nikko AM NZ primarily covers its asset management portfolios in its own climate statement. This means that explanations on how we assess climate risks and opportunities in our funds form a large part of our disclosure. It should be noted that we already do this in our investment process. Given the nature of our industry, climate-related opportunities and risks form part of our risk assessments alongside liquidity risk, management risk and other such considerations. The new regime, however, has made the process more formalised than before. In other words, we are now required to document a larger amount of information and release it in the form of a climate statement.

Scenario analysis in disclosure process seen providing new perspectives