New Zealand will relax its climate disclosure requirements and raise the size threshold for companies required to report climate-related risks, as part of a wider effort to revitalise domestic capital markets, Commerce and Consumer Affairs Minister Scott Simpson announced on Wednesday.
Under the new measures, the market capitalisation threshold for mandatory climate reporting will rise from NZ$60 million to NZ$1 billion (US$573 million). Managed investment schemes will be removed from the regime, and liability settings for directors and companies will also be adjusted to reduce compliance pressures.
Simpson said compliance costs — which have reached up to NZ$2 million for some firms — may be discouraging companies from listing on the New Zealand Exchange (NZX). Since 2020, 34 companies have joined the exchange, including six through initial public offerings, while 37 have delisted.
The reforms build on June’s changes that made the inclusion of forward-looking financial information optional for NZX listings. “We’re making common-sense adjustments so the regime is fit for purpose,” Simpson said.
The proposals will be incorporated into the Financial Markets Conduct Amendment Bill, signalling a shift towards a more flexible approach that balances sustainability transparency with market competitiveness.
