New Zealand has passed a law requiring banks, insurance companies, and investment firms to disclose the global warming record of their portfolios from next year. Prime Minister Jacinda Ardern also described it as the first step towards making the environmental record more transparent in the financial sector. As a result, New Zealand became the first country to enact this law.
James Shaw, New Zealand’s Minister for Climate Change, said: “Banks, insurance companies and investment companies must disclose the global warming record of their portfolios from next year.” Spoke. Shaw is expected to attend the United Nations Climate Change Conference in Glasgow later this month.
At the same time, he said, the announcement could in some way emphasize to the world that the investment sector can convey real-world developments.
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He added that it would encourage companies to become more sustainable by incorporating short-, medium- and long-term effects of climate change into their business decisions. He said New Zealand, the world’s leading economy, was the first country in the world to introduce mandatory weather reporting for the economy.
Around 200 of New Zealand’s largest companies, as well as a number of foreign firms with a market capitalization of more than NZ$1 billion, will be subject to the legislation.
Once the law is passed, companies will be required to make disclosures for financial years beginning next year, which means the first reports will be filed in 2023.
During its second term, the New Zealand government announced a number of policies aimed at reducing emissions, including a commitment to make the public sector carbon-neutral by 2025 and to purchase only zero-emission public transportation buses by the middle of this decade.
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