Summary

Aotearoa New Zealand Climate Standard 3 (NZ CS 3) provides general requirements for climate-related disclosures by entities. The objective of this standard is to ensure that climate-related information is disclosed in a clear, concise, and decision-useful manner, supporting the transition to a low-emissions, climate-resilient future. The standard requires entities to provide a climate-related disclosure report that includes information on their governance, strategy, risk management, and metrics and targets related to climate change. Entities must also disclose any material climate-related risks and opportunities that could impact their business activities. The report must include information on the entity's approach to managing and mitigating climate-related risks and opportunities, including their adaptation and transition strategies. It should also detail how the entity is aligned with the Paris Agreement and the goal of limiting global warming to well below 2 degrees Celsius. NZ CS 3 also requires entities to disclose their greenhouse gas emissions, including Scope 1, 2, and 3 emissions, and provide a breakdown of emissions by source. The standard provides guidance on how to calculate emissions and the use of emission factors. Entities are encouraged to apply all the requirements of the Aotearoa New Zealand Climate Standards to ensure comprehensive and consistent reporting. The standard applies to entities required to prepare climate statements or group climate statements under the Financial Markets Conduct Act 2013.