Governance Briefing — December 14, 2022
New Zealand's Financial Markets Authority issued final guidance on climate-related disclosures, clarifying board and assurance expectations for Climate Reporting Entities.
Executive briefing: On 14 December 2022 the Financial Markets Authority (FMA) of New Zealand published final guidance for Climate Reporting Entities (CREs) implementing mandatory climate-related disclosures under the Financial Markets Conduct Act. The guidance details board responsibilities, scenario analysis expectations, and assurance pathways.
Key governance signals
- Board accountability. Boards must oversee climate governance, ensure climate expertise is available, and approve disclosures that explain oversight structures.
- Scenario analysis and risk management. CREs should document scenario methodologies, resilience insights, and integration with enterprise risk management.
- Assurance planning. The FMA encourages boards to plan for assurance over greenhouse gas emissions and climate metrics, aligning with XRB standards.
Action checklist
- Map board and committee responsibilities for climate oversight, including skills, training, and reporting cadences.
- Enhance scenario analysis documentation and integrate findings into risk appetite statements and strategy reviews.
- Engage assurance providers early, define scope, and build evidence repositories for climate metrics.
Sources
- FMA media release on final climate-related disclosure guidance
- FMA guidance for Climate Reporting Entities (December 2022)
Zeph Tech works with New Zealand boards to operationalise climate governance, scenario analysis, and assurance programmes aligned to FMA guidance.