New Zealand has become the first country to introduce a law which will require banks and other investment managers to report impacts of climate change on their business. New Zealand’s Minister for Climate Change James Shaw announced the law on Tuesday. All banks with total assets of more than NZ$1 billion ($703 million), insurers with more than NZ$1 billion in total assets under management and all equity and debt issuers will have to make disclosures.
‘We simply cannot get to net-zero carbon emissions by 2050 unless the financial sector knows what impact their investments are having on the climate’ stated Shaw. Around 200 of the country’s biggest companies and several foreign firms meet NZ$1, meaning they will come under legislation and will have to explain how they would manage climate-related risks and opportunities.
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