The Government has released a discussion document, Climate-related financial disclosures: Understanding your business risks and opportunities related to climate change.

The document sets out proposals for a mandatory (comply or explain) principles-based, climate-related financial disclosures regime.

These would apply to financial firms and listed companies.

The discussion document asks four key questions: What are the arguments for retaining the status quo, versus introducing new mandatory disclosures? What should be disclosed? Which entities should be disclosing? When should they start disclosing?

The Ministry for the Environment says the feedback from the consultation will inform the Government’s decision on the proposed regime for climate-related financial disclosures.

"After the consultation period has ended, our ministry and the Ministry of Business, Innovation and Employment (MBIE) will prepare a report that summarises the submissions. We will then seek agreement from Ministers for policy decisions on the proposed regime, including any recommended changes arising from the consultation.

"Following Cabinet approval, officials will begin introduction of new regulations."

Submissions close at 5pm on Friday, 13 December 2019.