Glossary
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Climate reporting entity
An entity with climate-related reporting obligations under the CRD Act. Climate reporting entity is defined in Part 7A of the Financial Markets Conduct Act 2013.
CRD
Climate-related disclosures
CRD Act
See Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021
CRD Bill
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill
CRD assurance practitioner
Person carrying out assurance over disclosures in the climate statements.
European Financial Reporting Advisory Group (EFRAG)
A private not-for-profit association established with the encouragement of the European Commission to serve the public interest. EFRAG’s member organisations are European stakeholder and national organisations with an interest in financial and corporate reporting and a commitment to EFRAG’s public interest mission.
External Reporting Board (XRB)
An independent Crown entity, constituted under Part 2 of the Financial Reporting Act 2013, that issues legally binding:
- financial reporting and climate standards for New Zealand reporting entities
- auditing, assurance and ethical standards that contribute to the system for regulating auditors and assurance providers.
Financial Markets Authority (FMA)
An independent Crown entity, constituted under Part 2 of the Financial Markets Authority Act 2011, that promotes confident and informed participation in New Zealand financial markets.
FMC Act
The Financial Markets Conduct Act 2013
Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021
Legislation that introduced climate-related reporting obligations for large listed issuers, banks, insurers and investment scheme managers. It amended the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
FR Act
The Financial Reporting Act 2013
GHG
Greenhouse gas
Greenhouse Gas (GHG) Protocol
The GHG Protocol provides standards, guidance, tools and training for businesses and governments to measure and manage climate-warming emissions.
Greenwashing
Misleading, exaggerated or unsubstantiated environmental claims made by businesses or investment funds about their products, activities or performance.
International Auditing and Assurance Standards Board (IAASB)
The IAASB is an independent standard-setting body that sets international standards for auditing, assurance and quality control.
International Financial Reporting Standards (IFRS) Foundation
A not-for-profit public interest organisation established to develop, promote and facilitate the adoption of a single set of high-quality, understandable, enforceable and globally accepted accounting standards.
International Sustainability Standards Board (ISSB)
A board established by the IFRS Foundation with the aim of delivering a comprehensive global baseline of sustainability-related disclosure standards that provide investors and other capital markets participants with information about companies’ sustainability-related risks and opportunities to help them make informed decisions.
Sustainability reporting
Sustainability reporting is a generic term for reporting systems that are aimed at providing investors with information to assist in evaluating corporate behaviour and future financial performance. Although there is no internationally agreed definition, sustainability reporting can cover such matters as:
- waste and pollution, resource depletion, deforestation, GHG emissions and climate change
- employee relations and diversity, working conditions and health and safety
- board structure and performance, director and executive remuneration, executive or company diversity, donations and political lobbying.
“Sustainability reporting” and “Environmental, Social and Governance (ESG) reporting” are sometimes used interchangeably.
Task Force for Climate-related Financial Disclosures (TCFD)
A private sector-led group convened by the Financial Stability Board in 2015 to develop voluntary, consistent climate-related financial disclosures that would be useful to investors, lenders and insurance underwriters in understanding material risks.
XRB
See External Reporting Board.
< Chapter 6: Recap of the questions | Appendix 1. Climate and sustainability reporting progress >