Sustainability Reporting: XRB proposes moving New Zealand to International Sustainability Standards
Sustainability Reporting: XRB proposes moving New Zealand to International Sustainability Standards
In June 2026 the XRB announced that it had issued consultation on a draft climate reporting roadmap.
The key outcome would be the issuing a new climate standard (NZ IFRS S2 Climate-related Disclosures (NZ IFRS S2)) that would be:
However not long after this in June 2023, the International Sustainability Standards Board (ISSB) issued its own IFRS sustainability standards, which were adopted by various other jurisdictions (including Australia).
Accordingly, if the proposed NZ IFRS S2 were to be ultimate adopted:
Figure 1 – per https://www.xrb.govt.nz/consultations/climate/draftclimatereportingroadmap2026/
The key outcome would be the issuing a new climate standard (NZ IFRS S2 Climate-related Disclosures (NZ IFRS S2)) that would be:
- Internationally aligned by adopting IFRS S2 Climate-related Disclosures (IFRS S2).
- Harmonised with Australia by considering what approach to take where there are differences between IFRS S2 and the climate reporting obligations in Australia under AASB S2 Climate-related Disclosures and the Australian Corporations Act 2001.
- Locally relevant by considering what modifications, if any, are needed to fit with New Zealand’s legislative and regulatory settings, reporting practice and market context.
Potential impact in practice
New Zealand was one of the first jurisdictions to issue climate reporting standards, when the Aotearoa New Zealand Climate Standards (NZ CS) were first issued on 14 December 2022.However not long after this in June 2023, the International Sustainability Standards Board (ISSB) issued its own IFRS sustainability standards, which were adopted by various other jurisdictions (including Australia).
Accordingly, if the proposed NZ IFRS S2 were to be ultimate adopted:
- Climate reporting in New Zealand would become more internationally comparable.
- Entities could reduce duplication when reporting across borders.
- Investors and other primary users could better understand and compare disclosures.
Proposed transition process
The roadmap proposes a long transition period, with mandatory adoption not until 2033:Figure 1 – per https://www.xrb.govt.nz/consultations/climate/draftclimatereportingroadmap2026/
Consultation period
The XRB has provided the following documents:- The draft climate reporting roadmap (that sets out the proposed strategic direction).
- The accompanying consultation document (that explains the proposals and includes the questions).