The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has released its 2026 Climate-related Disclosures Insights Report, noting encouraging progress in reporting practices and a growing maturity across climate reporting entities (CREs), alongside areas for improvement to support more informed decision-making.
The report reviews 62 climate statements from the second year of disclosures under New Zealand's climate-related disclosure regime. It reflects a period of transition from initial implementation towards developing maturity in climate reporting practices, with many CREs demonstrating clearer report structures, an uplift in greenhouse gas emission disclosures, improved articulation of governance and risk management processes and an increasing recognition of material business risks driven by climate change.
Jenika Phipps, Manager Climate Related Disclosures, says that organisations are making steady progress.
"We're seeing real effort from entities, with encouraging improvements emerging across sectors as they complete their second set of mandatory climate statements.
While entities are making progress, the report highlights areas for improvement to further strengthen disclosures.
"Consideration of climate-related risks, particularly physical risks, remains important given climate change is already affecting New Zealand through more frequent and severe weather events. This may translate into financial impacts through effects on assets and operations, or indirectly through impacts on customers, supply chains or insurance availability.
"Our expectations for further progress are not intended to increase the volume or complexity of disclosures, but that CREs refine their approach to focus on information that is most relevant to primary users. This includes improving quality by ensuring appropriate data is used, enabling entities to move beyond general statements and provide clearer explanations of the material climate risks they face, how those risks arise, and the potential impacts on their business."
The report identifies key areas for improvement in climate statements. These include:
- More specific physical risk disclosures, including clearer explanation of how climate hazards translate into risks and which assets, operations or activities are exposed and vulnerable.
- Stronger data and analysis underpinning physical risk assessments, ensuring appropriate data is used so risks are not understated, overstated or misidentified and physical risk disclosures provide a reliable basis for decision-making.
- Clearer articulation of anticipated impacts, with a direct link to well-defined material climate risks and improved distinction between risks and their impacts.
- Better linkage between risks and transition planning, including clearer disclosure of how targets and actions (or the absence of these) respond to identified material risks.
- Improved quality and completeness of greenhouse gas assurance disclosures, including compliance with assurance standards, and transparency over what information has been assured.
"The FMA will continue to take an educative and constructive approach to monitoring, backed by engagement with entities and increased focus on education, including further support on physical risks," says Ms Phipps.
The full report is available here: 2026 Climate-related Disclosures Insights Report
