Sustainability reporting update for Q1 2022

During the first quarter of 2022, significant progress has been made by standard setters, regulators, and some jurisdictions in developing and applying sustainability reporting standards.

Some of the key developments include:

  • New Zealand’s External Reporting Board (XRB) has issued consultation papers on:
    • Proposed Strategy and Metrics and Targets sections of NZ CS 1
    • Governance & Risk Management NZ CS 1

      The XRB has been mandated by the New Zealand Government to issue climate standards as part of a climate-related disclosures framework, and guidance on environmental, social and governance (ESG) matters.

      The XRB plans to issue its first climate standard in December 2022, meaning impacted entities would be required to make disclosures alongside wider year end reporting in 2023 at the earliest.

      The climate-related disclosures are mandatory for large listed companies with a market capitalisation of more than $60 million; large licensed insurers, registered banks, credit unions, building societies and managers of investment schemes with more than $1 billion in assets; and some Crown financial institutions (via letters of expectation).

      The XRB is seeking feedback by 2 May 2022 on the proposed Strategy and Metrics and Targets sections of NZ CS 1. Read more here.
  • Board appointments to the International Sustainability Standards Board (ISSB) and process for consolidating the Climate Disclosure Standards Board and the Value Reporting Foundation into the ISSB
  • ISSB publishes its first two exposure drafts on IFRS Sustainability Disclosure Standards
    • IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
    • IFRS S2 Climate-related Disclosures.

      The proposals have been developed in response to requests from G20 leaders, the International Organization of Securities Commissions (IOSCO) and others for enhanced information from organisations about sustainability-related risks and opportunities.

      They set out requirements for the disclosure of material information about an organisation’s significant sustainability-related risks and opportunities that are necessary for investors to assess an organisation’s enterprise value and are not limited only to climate-related matters. The deadline for comments on both proposals is 29 July 2022.

      A summary of the proposals may be accessed here.
  • Some jurisdictions setting time frames for mandatory sustainability (including in some instances for unlisted entities).

Please refer to our Q1 2022 sustainability reporting update for more information or contact BDO’s Sustainability Team for assistance.


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

This publication has been carefully prepared, but is general commentary only. This publication is not legal or financial advice and should not be relied upon as such. The information in this publication is subject to change at any time and therefore we give no assurance or warranty that the information is current when read. The publication cannot be relied upon to cover any specific situation and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact the BDO member firms in New Zealand to discuss these matters in the context of your particular circumstances.
BDO New Zealand and each BDO member firm in New Zealand, their partners and/or directors, employees and agents do not give any warranty as to the accuracy, reliability or completeness of information contained in this article nor do they accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it, except in so far as any liability under statute cannot be excluded. Read full Disclaimer.