New Zealand introduces world’s first climate change law for financial firms

Current GK ( Master) International Affairs

New Zealand has become the first country in the world to introduce a first-of-its-kind legislation that will require the financial sector, including banks, insurers and investment managers, to report the effects of climate change on their business.
Under the law, the financial firms of the country will have to disclose how they would manage climate-related risks and opportunities.
Once the law is passed, disclosures will be required for financial years beginning 2022, which means that the first reports will be made by companies in 2023, and those unable to disclose would have to explain their reasons.
The financial firms liable for disclosure under the law will include all banks with total assets of more than 1 billion New Zealand dollars ($703m), insurers with more than 1 billion New Zealand dollars ($703m) in total assets under management, and all equity and debt issuers listed on the country’s stock exchange.
This initiative is in line with the effort to achieve net-zero carbon emissions by 2050.