Reserve Bank responds to climate consultations
To better understand and help mitigate financial risks of climate change, the Reserve Bank of New Zealand – Te Pūtea Matua has made submissions to two climate-related consultations. The External Reporting Board (XRB) is seeking feedback on the Governance and Risk Management sections of its proposed New Zealand Climate Standard 1 while the Ministry for the Environment (MfE) is seeking views on its Emissions Reduction Plan Discussion Document.
“We welcome the opportunity to provide feedback on these consultations and support New Zealand’s path to a low-carbon, climate-resilient economy,” Reserve Bank Governor Adrian Orr said.
“As we outlined in our Climate Changed report, our role as kaitiaki requires us to understand, mitigate, and manage climate-related risks to financial stability and our economy. We are one of over 100 central banks collaborating internationally on climate change through the Network for Greening the Financial System. We also recognise the primary role the Government has in leading emission reduction and adaptation as part of a collective response and aligned approach.”
The Reserve Bank is supportive of XRB’s work in implementing climate-related disclosures.
“We are pleased to be engaging closely with XRB and we will continue to do so. Regulators are important users of the climate disclosures, and our submission is driven by our desire to see alignment in climate-related risk reporting. Our goal is to see entities manage their own climate-related risks in a transparent manner that ensures these risks and opportunities are incorporated into business decisions.”
Meanwhile, the Reserve Bank’s submission to the MfE consultation focuses on climate finance and funding.
“Securing investment at an appropriate scale and pace is critical to shifting New Zealand’s Emission Reduction Plan beyond a policy framework to actual emission reduction,” Mr Orr said.
- RBNZ Submission on the External Reporting Board's Draft Standards on Governance and Risk Management Consultation Document (PDF 574KB)
- RBNZ Submission on the Ministry for the Environment’s Emissions Reduction Plan Discussion Document (PDF 921KB)
- Ministry for the Environment: Transitioning to a low-emissions and climate-resilient future: emissions reduction plan discussion document
- Climate Changed 2021 and Beyond Report
- Reserve Bank and Climate Change