Commonsense changes to boost capital markets

Commerce and Consumer Affairs Minister Scott Simpson says mandatory climate reporting has imposed heavy costs on listed businesses.

He says the decisions follow consultation earlier this year on climate reporting changes and on proposals to encourage more KiwiSaver investment in unlisted assets.

Mr Simpson says, “Our first step was to make forward-looking financial information optional for NZX listings. That change took effect in June and reduces costs for companies considering a listing. Now we’re making common-sense adjustments to the climate reporting regime so it is fit for purpose.

The Government will:

• Lift the mandatory climate reporting threshold for listed issuers from $60 million market capitalisation to $1 billion, striking a better balance between the regime’s aims and maintaining a healthy, competitive market.

• Adjust director and company liability settings to reduce unnecessary risk and cost while preserving robust climate disclosures.

• Remove managed investment schemes from the climate reporting regime, reflecting feedback from fund managers and investors that these disclosures are not useful for investment decisions in those products.