IFRS Foundation Trustees consider sustainability reporting
On 30 September 2020, the Trustees of the IFRS Foundation published a Consultation Paper on Sustainability Reporting (Paper). The paper sets out the view of the IFRS Foundation Trustees on how the IFRS Foundation may contribute to the development of consistent, global requirements for sustainability reporting, which would enhance the usefulness and comparability of information provided to stakeholders (e.g. investors, the corporate sector, central banks and market regulators).
BDO’s International Financial Reporting Bulletin (2020 13) summarises the current requirements for sustainability reporting, as well as the Trustees’ provisional approach, which is the creation of a Sustainability Standards Board to fall within the governance structure of the IFRS Foundation, alongside the International Accounting Standards Board.
In the New Zealand context, the above is particularly relevant as on 15 September 2020 the government announced the proposed climate-related financial disclosure regime that will be required to be applied from 2023 at the earliest. The regime will make New Zealand the first country in the world to require the financial sector to report on climate risks (please refer here for more detail).
The new climate reporting requirements will apply to:
- All registered banks, credit unions, and building societies with total assets of more than $1 billion;
- All managers of registered investment schemes with greater than $1b in total assets under management;
- All licensed insurers with greater than $1b in total assets under management or annual premium income greater than $250 million;
- All equity and debt issuers listed on the NZX; and
- Crown financial institutions with greater than $1b in total assets under management, such as ACC and the NZ Super Fund.
Organisations incorporated overseas will also be required to disclose in their New Zealand annual reporting.
Deadline for comments
The Consultation Paper is available for public comment until 31 December 2020.
For more on the above please contact your local BDO representative.