The State of Play of Climate-Related Information Assurance in New Zealand

This study examines the state of New Zealand (NZ)’s climate-related information assurance standards setting, its effectiveness in developing appropriate assurance mechanisms for Climate Reporting Entities (CREs), and offers reflective insights into how regulatory expectations, particularly in relation to the current climate-related disclosures regime, may be successfully realized within NZ’s regulatory and professional landscape. The authors found that the NZ External Reporting Board (XRB) responsible for developing the necessary assurance standards employs a strategic approach, which prioritizes broad stakeholder consultation (particularly with preparers and assurance providers though comparatively less emphasis is on users), substantial guidance and extended timelines to allow the sustainability assurance market in NZ to mature, develop consistency and build expertise. In reflecting on these issues, the authors highlighted concerns relating to the implications of timing delays and organizational readiness for standards implementation, the assurance market capability and consistency to deliver high-quality audits and associated cost implications. The authors also reflected on the need for further stakeholder engagement especially with users of assured reports to better meet stakeholders’ expectations.