This information sheet details compliance expectations of the FMA for scenario analysis disclosures made under the climate-related disclosures (CRD) regime. It will be useful for climate reporting entities (CREs), their directors, and other interested parties.
The CRD framework includes a requirement to conduct scenario analysis and disclose the process undertaken.
This information sheet sets out:
- how the FMA will apply the CRD framework relating to scenario analysis,
- what the FMA will look for when determining compliance with those standards; and
- other considerations that may help CREs ensure they meet the disclosure requirements.
This information sheet was updated in October 2023 to address questions raised during engagement with climate reporting entities and industry bodies.
The substantive updates are inclusion of:
- additional details and clarification regarding quantification in the context of scenario analysis; and
- an illustrative diagram to explain the relationship and links between the Strategy disclosures in NZ CS 1 and how they may inform or support one another.
Other minor updates have been made to provide further clarification and context.
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Related Links
We have also published a series of recorded presentations that explain the key topics covered by the information sheet. These recordings are based the explanatory webinars we ran in July 2023 but have been updated to reflect the October 2023 version of the information sheet.
- Video 1: What is the scenario analysis and what are the requirements in the CRD regime?
- Video 2: Compliance expectations for the scenario analysis process
- Video 3: Compliance expectations for climate-related scenarios
- Video 4: Scenarios must be relevant
- Video 5: Quantifying scenarios
- Video 6: Relationship between Strategy disclosures
