IoD backs international alignment on climate reporting

The IoD supports the External Reporting Board's (XRB) proposed move towards internationally aligned climate reporting standards based on IFRS S2, provided the framework delivers useful, comparable information without unnecessary complexity or cost.

Our submission recommends that New Zealand align closely with international standards, with departures limited to circumstances where they are clearly justified. We support retaining scenario analysis as a practical governance tool, rather than prescribing a fixed number of scenarios, and maintaining flexibility around industry-based disclosures.

We also consider the proposed 2033 mandatory implementation date too far away. A shorter, phased transition, supported by targeted guidance and closer alignment with Australia, would help organisations move to the new framework while preserving the governance benefits of existing climate reporting practices.