New Zealand introduces climate change law for financial firms in world first

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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 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 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.

“This law will bring climate risks and resilience into the heart of financial and business decision making.”

The New Zealand government has introduced several policies to lower emissions during its second term including promising to make its pubic sector carbon-neutral by 2025 and buy only zero-emissions public transport buses from the middle of this decade.

Prime Minister Jacinda Ardern, who returned to power last October delivering the biggest election victory for her centre-left Labour Party in half a century, had called climate change the “nuclear free moment of our generation.”