Page 6 - Chamber Voice Magazine Summer 2023
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ESG (ENVIRONMENTAL, SOCIAL AND
GOVERNANCE) DISCLOSURE – ON ITS WAY
After climate disclosure, water disclosure is These local regulatory developments are likely to
likely to be the next cab off the rank for many be a precursor to a wider array of ESG disclosure
Marlborough businesses. As part of the Essential requirements. As an example, in September 2023,
Freshwater Package introduced in 2020, the Taskforce on Nature-Related Financial
farmers and growers will need to develop plans Disclosures (TNFD) released its
to identify, manage, and reduce the impacts of Recommendations and Additional Guidance
farming on the freshwater environment. The publications. These documents provide
requirement for Freshwater Farm Planning will organizations with a set of disclosure
apply to all pastoral and arable land sections recommendations for reporting and acting on
above 20 hectares, all horticultural land above 5 evolving nature-related dependencies, impacts,
hectares, and all mixed-use land above 20 risks, and opportunities. The recommendations
hectares. This requirement has already been they contain are intended to enable businesses
implemented in the Waikato and Southland and financial institutions to integrate nature into
from 1 August 2023 and will be rolled out to all their decision-making, and ultimately support a
regions by the end of 2025. shift in global financial flows from destructive to
regenerative outcomes for biodiversity and the
In terms of the rollout of the program, farmers natural world.
will need to have their plans developed and
certified within 18 months of their regional An interesting aspect of the emerging ESG
rollout date. The plans will need to be disclosure regime is the role played by New
recertified every five years, and will need to be Zealand's regulatory environment. At the
independently audited within 12 months of the Chamber, we increasingly hear from members
initial certification, with subsequent audit that the most important driver of their non-
timeframes determined by the audit score. financial disclosure efforts is not regulatory
Given the emerging global trends in ESG pressure within New Zealand, but rather demand
disclosure, it is highly likely that these plans will on the part of international customers, investors,
need to be publicly available and/or shared with industry bodies, and regulators for this
customers, local government, and other information. Relevant examples include the
stakeholders. European Green Deal, a comprehensive package
of mutually supportive regulatory interventions
covering a wide range of fields including
emissions, agricultural chemicals, deforestation,
and product labelling, and the British Retail
Consortium's Climate Action Roadmap.
In 2024, the Chamber will expand its activities in
the field of ESG disclosure to support members in
adopting global best practices in this area. We
will also be partnering with a number of local and
national organizations to promote the uptake of
non-financial disclosure within the Marlborough
business community. For more information on
ESG Disclosure please email Alistair Schorn at
alistair@marlboroughchamber.nz
5 VOICE MAGAZINE
