The impact of investments on the climate: New Zealand wants to commit banks to transparency
How financial transactions affect the climate needs to become more transparent in the future. Photo: Westend61 / Westend61
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The impact of investments on the climate: New Zealand wants to commit banks to transparency
Day-to-day business in the finance, real estate or investment sectors virtually affects the climate. New Zealand now wants to be the first country to require banks and insurance companies to disclose the environmental impacts of their investments. This aims to strengthen the fight against climate change.
Commerce Secretary David Clark justified the move by saying It is important that “every part of New Zealand’s economy helps us reduce emissions.” Regulation should ensure that financial institutions “do ultimately” against climate risks.
The first climate reports are expected in 2023
When the law is passed, it should Annual climate reports are mandatory for institutes from 2023 is being. Climate Change Minister James Shaw said investments linked to rising greenhouse gas emissions should become less attractive in the future. All banks with assets in excess of NZ $ 1 billion are said to be affected by the new regulation In addition to insurance companies that have more than the corresponding amount of assets under management and all issuers of stocks and bonds listed on the country’s stock exchange.
“We simply cannot become carbon neutral by 2050 if the financial sector does not know the impact of its investments on the climate.” The law will place climate risk and resilience issues at the “heart of the decision-making process”.
New Zealand Prime Minister Jacinda Ardern has set a goal of making the country climate neutral by 2050. By 2035, all energy production must come from renewable sources.
(sb / afp)
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