The Government’s recent updates to the Climate-related Disclosures (CRD) regime are designed to make reporting more proportionate, removing mandatory requirements for some listed issuers and removing managed investment scheme managers from the regime entirely. This shift is significant, and for some organisations, it will reduce compliance costs and complexity in the near term.
However, it is important to view these updates in the context of the wider market, not just regulation. Many of New Zealand’s largest markets, investors, and trading partners — particularly across Australia, Europe, and Asia — are moving ahead with mandatory climate-related disclosure. As of 2024 55% of global GDP and more than 40% of global market capitalisation was aligned with IFRS international disclosure standards, and in 2025, the IFRS has continued to see an increase in regulatory plans. Our export-led economy relies on trust in the environmental credibility of New Zealand businesses and products.
For organisations that have already completed one or more CRD cycles, the investment in reporting systems, governance, climate data, and capability has already been made. Stepping back now risks losing that value — while continuing in a voluntary capacity can strengthen strategic position.
Four reasons climate reporting makes strategic sense
Whether mandatory or voluntary, climate reporting is about much more than compliance. It is a foundation for good business and long-term performance.
1. Risk management & business resilience
Climate reporting and risk management helps organisations understand exposure to transition and physical climate risks — and to plan accordingly. Strong governance enhances investor confidence and supports resilient growth in a changing operating environment.
2. Operational and supply chain efficiency
Measuring emissions surfaces inefficiencies — in energy use, travel, fleet, and procurement — especially across the supply chain. For many organisations, emissions reductions and cost reductions go hand in hand.
3. Market Access
Major buyers, lenders, and capital markets are increasingly requiring climate transparency to manage their own risks and Scope 3 emissions. Maintaining credible reporting safeguards access to capital and contracts domestically and internationally.
4. Competitive Advantage
Organisations that act early continue to lead — attracting talent, strengthening reputation, and differentiating in markets where values-driven purchasing is rising. Sustainability is no longer about public image; it’s a strategic asset when it meets international standards.
There’s a clear opportunity to stay ahead
New Zealand businesses have a choice in this moment: to pause and wait, or to keep building confidence and credibility. Those who continue to strengthen their climate strategy and reporting — with proportionality and realism — will be better positioned to respond to future shifts, whether market-led or regulatory.
At Toitū, our vision remains that all New Zealand organisations can have a net positive impact on the Earth by 2050. We will continue supporting businesses to measure, manage, and meaningfully reduce their climate impact, regardless of reporting mandate.
If your organisation is considering whether to continue reporting voluntarily, or how to maintain momentum in a practical and strategic way, we’re here to help.