ClimSystems’ Review Highlights Readiness To Assist Reporting Entities With Mandatory Climate-related Disclosures

ClimSystems meets or exceeds the quality standards required to support Climate Reporting Entities (CREs) in complying with the new laws on climate-related disclosures (CRD) in New Zealand. The company, operating in New Zealand for over twenty years, implemented a review of its operations in response to the June 2023 guidelines published by the New Zealand Financial Markets Authority – Te Mana Tātai Hokohoko (FMA).

FMA Guidelines

In 2021, New Zealand was the first country in the world to introduce the CRD law, requiring organisations classed as CREs to report on climate change risks to their businesses. CREs include approximately 200 NZX-listed issuers and large financial market participants. Most CREs will use third-party providers for data and expertise to meet their climate-related disclosure obligations when preparing climate statements. Third-party providers must ensure that their outputs will support CREs in complying with the CRD regime. CREs must ensure that a prospective climate data or service provider has the skills, knowledge, and experience to deliver what the CRE needs.

ClimSystems Review of Readiness

Following FMA guidelines, ClimSystems has completed a work plan and reviewed its operations in light of the new CRD legislation. A highlight of the review process is that the company meets or exceeds the quality assurance and data management requirements of the CRD framework. Another strength is ClimSystems’ transparency. Chief Climate Scientist Dr. Yinpeng Li has championed the need for transparency of data provenance and methodologies for many years. ClimSystems has satisfied this CRD metric for years as a leading international climate data provider. The Readiness Review also considered compliance mastery, particularly with training staff on the CRD regime. It is part of the regular audit of its services to ensure continued alignment with the climate-related disclosures framework.

ClimSystems knows that quality data is essential for informed decision-making. According to its Managing Director, Dr. Peter Urich, “The FMA guidelines are a fantastic step forward. Robust transparency in the climate modelling space is paramount, albeit not easily achieved.”

As a third-party provider, ClimSystems is a transparent and accountable partner for climate data related to physical value at risk. Its work plan meets FMA guidelines and allows straightforward auditing and peer review. ClimSystems is ready to support CREs in meeting the CRD regime’s legislative requirements.

About ClimSystems

ClimSystems Ltd is a leading international climate data and insights provider. Proudly operated in Aotearoa, they are a FernMark company and part of the inspiring NZ Tech Story. Visit climsystems.com for more information on our work.

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