To report, or not to report, that is the question

The New Zealand government announced an increase in the thresholds for mandatory climate reporting. This change means that about half of the Climate Reporting Entities (CREs) currently mandated to report under the Aotearoa New Zealand Climate Standards (NZCS) will have the option to continue or cease reporting. Organisations now presented with this new-found optionality may consider asking themselves four key questions:

• How much overlap is there between NZCS climate reporting obligations and actions you might choose to take voluntarily?
• What is the annual delivery cost of climate-related disclosures and how does this compare to the value from these documents?
• Are there components of the NZCS regime which have more value to your organisation?
• What future reporting obligations might your organisation have, both here and overseas?

The decision about whether to continue reporting will be an important one for the impacted organisations. This is because it will have implications for both the work they carry out internally, as well as what they are able to communicate to stakeholders externally. This question needs to be approached strategically, with a long-term focus and a clear understanding of the trade-offs.