New Zealand will require the financial sector to report on the environmental impact of its investments

New Zealand will require the financial sector to report on the environmental impact of its investments

New Zealand Prime Minister Jacinda Ardern during a televised debate in Auckland, New Zealand, on September 22, 2020. Fiona Goodall/Pool via Reuters

New Zealand became the first country to force the financial sector on Thursday to report the environmental impact of its investmentsAnd after approving a law proposed by the executive authority headed by the Prime Minister, Jacinda Ardern.

“We have an opportunity to pave the way for other countries to make climate impact disclosure mandatory. New Zealand is a world leader in this and the first country in the world to require the financial sector to report on itThe Minister of Climate Change said, James Shaw, it is a statement.

oceanic country It will also require banks, insurance companies and investment managers to explain how to manage risks and opportunities associated with impacts on the environment..

“Services and financial markets play an important role in New Zealand’s transition to a green, carbon-neutral future,” Commerce and Consumer Minister David Clark said in the same statement.

A branch of ANZ Bank in Wellington, New Zealand, July 23, 2020. Photo taken on July 23, 2020. REUTERS/Praveen Menon
A branch of ANZ Bank in Wellington, New Zealand, July 23, 2020. Photo taken on July 23, 2020. REUTERS/Praveen Menon

The law assumes that 200 entities in the country are reporting as of 2023 and will affect all registered banks, credit unions and mortgage credit associations, Beside Investment managers and insurance companies with total assets of over NZ$1 billion (717 million US dollars).

The new rules will also affect All issuers of equity and debt listed on the New Zealand Stock Exchange, NZX, plus Public companies worth over NZ$1 billion.

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The Ardern Labor government is committed to bringing New Zealand to Carbon Neutrality by 2050 More than half of the country’s cars will be electric by 2035. In December, it also declared a climate emergency in its territory.

(With information from EFE)

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