First in world! New Zealand introduces climate change law for financial firms

Wellington, Apr 14: New Zealand has become the first country to introduce a law that will require banks, insurers and investment managers to report the impacts of climate change on their business, Minister for Climate Change James Shaw said on Apr 13.

 

 

 

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 listed on the country’s stock exchange 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,” Shaw said in a statement.

 

 

 

 

 

 

The Minister for Climate Change said, “This law will bring climate risks and resilience into the heart of financial and business decision making.” (Courtesy: REUTERS) James Shaw shared through a tweet that, "We cannot address the climate crisis unless banks allocate money in a way that assists the transition to net-zero. NZ is the first in the world to introduce a law to make that happen. It will mean every financial decision takes climate change into account."