Submission on XRB strategy and metrics consultation document

On Monday 2 May, LCANZI’s financial disclosures sub-committee made a submission to the External Reporting Board (XRB) in relation to the Climate-related Disclosures Strategy and Metrics and Targets Consultation Document (Consultation Document), which relates to part of the proposed reporting standard, Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1).

LCANZI generally supports the work of the XRB but made 6 key submissions in relation to the Consultation Document:

  1. Require, at a minimum, three scenarios to be used in scenario analysis being 1) a 1.5 degree scenario; 2) a greater than 2 degree scenario; and 3) a “pessimistic but plausible” reference scenario (which would currently be 3.2 degrees by 2100).

  2. Expand the scope of materiality to encompass double materiality.

  3. Expand the definition of primary users to encompass a wider range of stakeholders.

  4. Require that transition plans be tied to a publicly stated target.

  5. Provide and advocate for further support for cross-sector collaboration on the creation of sector-level scenario analysis.

  6. Set the minimum level of assurance for GHG emissions at limited assurance and require disclosure of scope 3 value chain emissions as part of this standard.

If you are interested you can read the full submission here. Many thanks to our hard-working financial disclosures sub-committee members; Lloyd Kavanagh, Isabelle Smith, Teddy Rose, Georgie Crawford, Michell Tustin, Sophie Meares and Shaanil Senarath‑Dassanayake.

LCANZI