Finding value in a shifting climate reporting landscape

Shaping the right climate reporting regulation hasn’t been easy on businesses, but it has been highly effective at bringing the impact of climate to the board table. 

As organisations reflect on the latest changes in New Zealand¹ and the mandatory rules of disclosure that fall away, we see an opportunity for businesses to rebalance the value equation in favour of reporting that truly matters to them and their investors. They are no longer thinking only of compliance, and instead, are freed to focus on reporting for value.

Whether affected by these changes or not many organisations are asking, what next? With significant time and resources invested in reporting, how can they ensure they continue to gain value from their efforts?

Regulatory change prompts a moment for businesses to take stock, assess progress, and make strategic choices which better fit their needs.

For companies that are no longer part of the regime and were preparing to report Scope 3 emissions and climate-related financial impacts in 2026, a pause in data gathering or reporting may be tempting – but the consequences are often underestimated when businesses want to reignite reporting practices. It can make financial sense to stay the course for a number of reasons:

• Much of the groundwork was done in the first years of reporting and assurance. With systems now in place, the cost of preparing reporting on a voluntary basis is not as high as it was before. Businesses can expect to build efficiency gains and expedite return on investment with improving data quality, automation, and alignment with financial reporting cycles.
• Reporting entities that have growth in mind should consider whether they may meet the revised market capitalisation thresholds in future. Climate reporting is part and parcel of being a top tier listed NZX company and businesses in this bracket, with ambition for growth in share value, might do well to maintain the disciplines of the climate reporting regime.
• Methodologies for measuring emissions and assessing climate impacts will continue to evolve quickly. Taking a break could mean a steeper learning curve later to revisit measurement standards and approaches, rebuild assumptions and update systems that no longer meet expectations. Staff who built and supported processes may also move on, taking knowledge with them.

Using the additional regulatory relief means businesses can progress voluntarily and at a pace that works for them. A proportionate approach that maintains the core benefits of reporting with appropriate levels of investment is likely to result in fewer remediation surprises and less disruption in the long term.

Those not captured by regulation may still find value in exploring where climate information could support decision-making and steer business operations aligned with their definition of value. More broadly, all organisations – whether currently, previously, or never captured by regulation – are increasingly looking beyond climate topics to consider how wider sustainability information can support strategy, performance and long-term value creation.

In response to regulation companies have developed new systems and processes to better understand how climate impacts their operations. They can now use that information to mitigate risk and uncover opportunities that protect and grow business value.

Alongside this they have developed external reporting capability that expresses that value outside of the business, translating internal insights into information that stakeholders can understand, trust, and act on.  This is the sweet spot where the value in climate reporting lies.

PwC’s Global Sustainability Reporting Survey 2025 found that most companies are seeing value from sustainability reporting that is above and beyond compliance. In fact, 70% of respondents cite that the data and insights are of moderate to significant value to their company. These insights remain highly relevant to New Zealand businesses, even as domestic requirements change.

What can NZ businesses learn from global reporting entities about extracting value from sustainability reporting?

Climate, and broader sustainability reporting have the potential to deliver value beyond regulatory compliance.  

Each company must explore what reporting activities, data points and analysis enable better business outcomes, and minimise what detracts. 

In New Zealand, all companies are able to voluntarily report additional climate and sustainability information, whether they are subject to regulatory requirements or not. Reporting on a voluntary basis gives organisations the opportunity to take a more selective and proportionate approach to suit individual business needs, while also anticipating future stakeholder or regulatory expectations.

It's an approach we are seeing globally too. Among companies affected by the CSRD 'Omnibus' delay¹ and threshold changes, around half (51%) still plan to report on the same timeline but in a way that suits them. Some will continue with the CSRD (27%), others will use another framework (13%) or will report without aligning to a specific framework (11%).

Voluntary reporting sits outside of a regulatory regime so it will be important to maintain confidence in the information that is shared. For some organisations, this may mean identifying information where independent assurance could add value, particularly where decisions, investment, or stakeholder trust depend on it.

A renewed focus on what matters

It is our view that the trajectory for climate reporting in NZ businesses remains compelling: climate reporting is so much broader than compliance and the value case exists for businesses to produce information that supports strategy and strengthens decision making.

What comes next won’t look the same for everyone.

We trust the reduction in regulation will help some businesses, that are struggling to balance the value equation, land an approach that feels workable for the business and that reflects its definition of value.

Climate, and broader sustainability reporting has evolved quickly, and in moving from the abstract to the practical, has become a value-adding tool for many New Zealand businesses. Staying engaged and invested in reporting, at a proportionate level, will leave businesses better placed to protect, and even increase, corporate value through climate change.