Listed firms in NZ to see changes in mandatory climate reporting

"Common-sense adjustments" include increased reporting threshold.

"Mandatory climate reporting has imposed heavy costs on listed businesses."

Those were the words of New Zealand Commerce and Consumer Affairs Minister Scott Simpson when the Kiwi government announced upcoming changes to the country's climate-related disclosures regime.

The changes will be introduced via the Financial Markets Conduct Amendment Bill, which is expected to be passed in 2026.

Under the revised regime, the mandatory threshold for listed companies will jump from NZ$60m to NZ$1b market capitalisation, meaning smaller firms will no longer be required to report on their climate risks and opportunities.

Additionally, managed investment schemes will be removed whilst director and company liability settings will be adjusted.

Simpson noted: "Climate reporting was introduced by the previous government, and New Zealand was first in the world to require it. Whilst the intentions were solid, the rules proved too onerous and have become a deterrent for potential listers.

"It made sense to review these after the first year of reporting. We have listened to the feedback, examined how the regime operates in practice, and are now resetting the settings accordingly."

The minister's camp described the future changes as "common-sense adjustments" aimed at ensuring that the regime is fit for purpose.

"Some entities tell me they have spent up to NZ$2m on compliance, money they would rather invest in practical emissions reductions such as electric vehicles," shared Simpson, who pointed out that the regime shouldn't be making it harder for Kiwi firms to do business.