Climate change impact and the NZX50

Evaluating financial reports and responses to new climate-related disclosure requirements. An analysis of NZX50 December 2023 reporters.

In this latest report, we continue our investigation into NZX50 companies and their preparation to adopt the Aotearoa New Zealand Climate Standards (NZ CS). We revisit how NZX50 December 2023 reporters disclosed climate-related risks in their financial statements and how auditors considered climate-related impacts in key audit matters (KAMs). How do these latest statements compare to prior years?

Importantly, these reporters were the first to mandatorily prepare their climate-related disclosures (CRD) in compliance with the NZ CS issued by the External Reporting Board (XRB). What did they report and how did they go about it?

This report follows our earlier analysis of March, June and July to December 2022, and March and June to September 2023 reporters.

Overall key findings (compared to December 2022 NZX50 reporters)

6 (2022: 6) businesses on the NZX50 with December year ends have completed their financial reporting.

 

3 (2022: 2) reporters discussed the impact of climate-related risks in their financial statements.

4 businesses discussed the 2023 extreme weather events (2 in the financial statements and 2 outside of the financial statements in the annual report).

 

1 (2022: 1) businesses disclosed the use of green finance.

2 (2022: 1) audit reports mentioned climate change in KAMs.

3 businesses quantified the impacts of the 2023 extreme weather events (2 in the financial statements and 1 outside of the financial statements in the annual report).

Key findings from the first climate-related disclosures (CRD)

3 reporters published their first CRD in accordance with the Aotearoa New Zealand Climate Standards at the same time as their financial statements.

 

3 reporters published their CRD as a separate document, after publishing their annual report.

 

All of the reporters took the exemption of not quantifying the impact of risks and opportunities in their CRD statement.

3 reporters had a combination of reasonable or limited public assurance. 

 

 

Contact us

Karen Shires

Karen Shires

Chief Risk & Reputation Officer, PwC New Zealand

Tel: +64 21 501 043

Jonathan Skilton

Jonathan Skilton

Partner, Sustainability Reporting & Assurance Leader, PwC New Zealand

Tel: +64 21 355 879

Tiniya du Plessis

Tiniya du Plessis

Partner, PwC New Zealand

Tel: +64 21 495 856

Mariann Trieber

Mariann Trieber

Executive Director, PwC New Zealand

Tel: +64 21 062 1812

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