New Zealand has declared its net zero plans – now is the time for proper implementation
The Zero Carbon Act was passed in 2019, giving New Zealand a set framework when it comes to mitigating and adapting to climate change. However, now the focus for the rest of the decade needs to be the conversion of those plans in measurable action, said Russell McVeagh special counsel Hannah Bain.
In her recent exclusive interview with NZ Lawyer, the climate change expert said that it was good to see businesses prioritising transition planning.
“There has been a real momentum shift over the past few years in relation to the way that organisations are responding to climate change. From a legal perspective, a significant change has been the introduction of New Zealand’s mandatory climate-related disclosures regime, which will require many New Zealand businesses to report on their climate-related risks and opportunities for financial periods starting on 1 January 2023 – with much of the relevant work already underway”, she said.
“While the regime is focused on disclosure, we’re seeing that the process of preparing for disclosure is causing companies to carefully consider their resilience to the risks caused by climate change, and to adjust their strategies in response”.
Nonetheless, Bain cautions businesses to not make promises they can’t deliver on.
“It is important, though, that before putting in place net-zero or similar targets, businesses carefully consider their ability to meet those targets and put in place credible plans to get there”, she said. “Net-zero commitments that are not supported by appropriate plans could be subject to allegations of greenwashing, and we’re starting to see both increased regulatory scrutiny and private litigation internationally in relation to such claims”.
Hannah Bain further discusses the climate change concerns New Zealand should be mindful of in this exclusive feature.
