New Zealand, the first country in the world to force banks to disclose the climate impact of their investments

The country wants to achieve carbon neutrality by 2050 and to do so it ensures that the financial sector will have to do its part.

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The ocean country wants to achieve carbon neutrality by 2050 and to do so it ensures that the financial sector will have to do its part.

New Zealand will force banks, insurance companies and investment firms to disclose the impact of their investments on climate change, and will thus become the first country in the world to introduce a law requiring the financial sector to be transparent on the issues. environmental.

"Becoming the first country in the world to introduce a law like this means having the opportunity to show true leadership and pave the way for other countries to make climate-related financial reporting mandatory," said David Clark, Minister of Commerce. of New Zealand.

The law will force some 200 of the country's largest companies with assets of over NZ $ 1 billion (€ 596 million) to disclose not only their investments but also the companies they lend money to in terms of environmental impact.

“Although some companies have started publishing reports on how climate change can affect their business, their strategies and their financial position, there is still a long way to go,” added Clark.

For New Zealand, mandatory reporting of climate-related information by the financial sector would help meet its international obligations and achieve the zero-carbon target by 2050. It would also help address the risks associated with climate change by making the most resilient country's financial system.

“We simply cannot achieve net zero carbon emissions by 2050 unless the financial sector knows what impact their investments are having on the climate. This law will bring climate risks and resilience to the heart of financial and business decision making, ”said James Shaw, Minister of Climate Change.

The information will be requested starting with the exercises starting in 2022; which means that the first communications will be made in 2023. There is no doubt that it is a truly admirable law that pushes the country towards a more sustainable economy, and which we hope will soon be replicated in the rest of the world.

Fonte: New Zealand Government