New Zealand is taking bold steps toward addressing climate change, with the implementation of the New Zealand Climate Standards becoming an essential part of the country’s sustainability framework. As part of this, businesses listed on the New Zealand Stock Exchange (NZX) are required to disclose climate-related information. They are heading into Year 2 of disclosures. However, what happens to the companies that supply these NZX-listed firms but are not directly obligated to complete their own climate-related disclosures?

What are the implications of these climate standards on non-listed suppliers?

How can Emission Insights assist these companies in preparing for the changes ahead?

Understanding the New Zealand Climate Standards

The New Zealand Climate Standards are part of New Zealand’s broader commitment to meet its international climate obligations, including carbon reduction targets under the Paris Agreement. Under these standards, NZX-listed companies are required to disclose climate-related risks, opportunities, and their carbon footprints.

The regulations focus on ensuring that large, listed companies are transparent about how their operations are being impacted by climate change and how they are contributing to the solution through decarbonization strategies.

Implications for Non-Listed Suppliers to NZX-Listed Companies

While it’s clear that NZX-listed companies are subject to the disclosure requirements, what does this mean for their suppliers who aren’t directly required to meet the same standards?

1. Increased scrutiny and expectations: As NZX-listed companies begin to disclose more detailed climate-related information, they will likely expect their suppliers to demonstrate a similar level of commitment to sustainability. Suppliers who are not proactive may face increasing pressure from customers, investors, and regulators.
2. Supply chain accountability: Investors are increasingly looking at a company’s entire supply chain when evaluating its environmental footprint. This could lead to a situation where suppliers must demonstrate their own climate strategies to avoid being seen as a risk to their NZX-listed customers.
3. Competitive advantage for early adopters: Suppliers who proactively implement climate strategies and monitor their carbon emissions may have a competitive edge. This is particularly important as sustainability becomes a key differentiator in procurement decisions.
4. Potential regulatory changes: While suppliers may not yet be required to complete climate-related disclosures, there is a growing likelihood that future regulations may extend to non-listed businesses as well. Companies who start preparing early can ensure they stay ahead of the curve if new requirements are introduced.

How Emission Insights Can Help

At Emission Insights, we specialise in helping companies understand, measure, and manage their carbon emissions. We can assist suppliers to NZX-listed companies in meeting the challenges posed by the New Zealand Climate Standards through:

1. Carbon Footprint (Greenhouse gas emissions) Calculation: We assist companies in calculating their carbon footprint, offering clear insights into your current emissions levels. This helps not only with internal climate management but also provides you with the data you may need to meet future regulatory requirements or to share with your NZX-listed clients.
2. Tailored Reporting Solutions: Whether or not you're directly required to disclose climate information, we help create reports that align with the Greenhouse Gas Protocol and ISO 14064-1:2018 frameworks. This means you're able to supply your carbon emission data to your clients if and when they ask for it.
3. Sustainability Strategy Integration: Our team works with you to integrate sustainability into your overall business strategy. We assist in developing initiatives that improve your environmental impact, which will not only benefit the planet but also strengthen your relationships with customers and investors who prioritize sustainability.
4. Compliance Readiness for Future Regulations: While your company may not be required to disclose climate-related information now, we help you stay ahead of regulatory changes. By putting in place strong climate management practices, you position yourself as a leader in sustainability, ensuring smooth compliance with future climate regulations.

The New Zealand Climate Standards and the shift toward sustainability disclosure are transforming the way businesses operate, even for companies that supply NZX-listed firms but aren’t directly required to complete climate-related disclosures themselves. Now more than ever, being proactive about climate management and disclosure is key to maintaining a competitive edge and meeting increasing stakeholder expectations.

At Emission Insights, we are committed to helping businesses like yours understand and manage greenhouse gas emissions, build sustainable strategies, and prepare for a future where climate transparency is not just an expectation, but a requirement.

If you’re a supplier to NZX-listed companies or simply want to ensure your business is ready for future regulatory changes, contact Emission Insights today to learn how we can support your sustainability journey.

Reach out to Emission Insights at www.emissioninsights.co.nz to learn more about our services and how we can help your business navigate the complexities of climate-related regulations.