Climate Change Minister James Shaw said that New Zealand intends to be the first country to enact a law that will require banks, insurance companies and investment managers to report on the impact of their investments on climate change.
All banks with total assets of more than 1 billion New Zealand dollars (US$700 million), insurance companies with total assets under management of more than 1 billion New Zealand dollars, and all listed issuers must disclose this information.
Xiao said: “If the financial sector does not know what impact their investment will have on the climate, we will not be able to achieve net zero carbon emissions by 2050.”
He added: “This law will bring climate risk and resilience to the core of financial and business decision-making.”
The bill has been announced in Parliament and is expected to be read first this week. The bill requires financial companies to explain how to manage climate risks and opportunities.
Approximately 200 of the country’s largest companies and several foreign companies will be bound by law.
Data will need to be released in the next fiscal year after the law is promulgated, which means that the company’s first report will be submitted in 2023.
The New Zealand government announced in September last year that it would release a financial sector report on climate risk, and those who did not do so would have to explain why.
The government has introduced several policies to reduce greenhouse gas emissions during its second term, including a pledge to make the public sector carbon neutral by 2025 and to purchase only zero-emission buses from the middle of this century.
Prime Minister Jacinda Ardern (Jacinda Ardern) came to power in October last year. Prior to this, she received the most convincing lunch in the elections for the center-left Labor Party in half a century. She has taken climate change and its countermeasures as an example. The center of its policy.