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:
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).
Expand the scope of materiality to encompass double materiality.
Expand the definition of primary users to encompass a wider range of stakeholders.
Require that transition plans be tied to a publicly stated target.
Provide and advocate for further support for cross-sector collaboration on the creation of sector-level scenario analysis.
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.