FMA publishes updated scenario analysis information sheet for Climate Related Disclosures regime

FMA publishes updated scenario analysis information sheet for Climate Related Disclosures regime

Scenario analysis information sheet

As detailed in our July 2023 article the Financial Markets Authority (FMA) has issued a scenario analysis information sheet (information sheet) to help climate reporting entities (CREs) meet their obligations under the Climate-Related Disclosures (CRD) regime.

The FMA has updated this information sheet to address questions raised during explanatory webinars and engagement with climate reporting entities (CREs) and industry bodies in August and September 2023.
Significant updates include: 
  • additional details and clarification regarding quantification in the context of scenario analysis; and 
  • an illustrative diagram to explain the relationship and links between the Strategy disclosures in NZ CS 1 and how they may inform or support one another.  
As a reminder, the information sheet sets out:
  • how the FMA will apply the CRD framework relating to scenario analysis,
  • what the FMA will look for when determining compliance with those standards; and
  • other considerations that may help CREs ensure they meet the disclosure requirements.

The updated information sheet is available here.

Furthermore, the FMA has also published a series of recorded presentations that explain the key topics covered by the information sheet. These can be accessed here.

Climate Related Disclosures regime record keeping guidance

In addition, to the above information sheet, the FMA has published its final guidance for CREs on meeting their record keeping obligations.

The guidance sets out principles and the FMA’s expectations on CREs for creating, keeping, and maintaining proper records as evidence that climate statements comply with the Financial Markets Conduct Act (FMCA) and the Aotearoa New Zealand Climate Standards framework.

The guidance for keeping proper climate-related disclosure records can be accessed here.

Climate-related disclosures - proposed conditional exemption for listed issuers and registered banks

It should also be noted that the FMA has agreed in principle to grant an exemption (with conditions) for CREs who are listed issuers or registered banks from the requirement to include a copy of, or link to, their climate statements in their annual report for a period of two years.  the FMA aims to this notice in place to give effect to this decision before the end of 2023. 

For more on the above, please contact your local BDO Representative.