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March 24, 2022

Regulatory round-up

By Victor Smart

New Zealand is proposing its forthcoming corporate climate disclosure rules will require only that firms set out the risk to firms from climate change rather than the companies’ impact on the environment as well. Adopting this so-called ‘enterprise value’ approach rather than the tougher ‘double materiality’ criteria is set out in the latest consultation by the External Reporting Board (XRB) standard setter.

In alignment. The XRB said some have urged it to opt for the double materiality ‘lens’ more prevalent in EU and UK environmental policy. But it countered that enterprise value aligns it better with the widely used Task Force on Climate-related Financial Disclosures framework and the work of the new International Sustainability Standard Board, due to publish its first proposals shortly.

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