Investors arguably form the central point of the reporting nexus. Not only do they receive reporting from the targets of their investment – data on which they base allocation decisions – but they also have to produce reporting their own clients and regulators consider adequate.

Under New Zealand’s mandatory Task Force on Climate-related Financial Disclosures (TCFD) regime, all managers of registered investment schemes with more than NZ$1 billion (US$700.8 million) in total assets under management will be required to make climate-related financial disclosures.

Harbour Asset Management oversees more than NZ$5 billion for New Zealand clients. Jorge Waayman, manager, ESG research at Harbour, says the future disclosure requirements should not be too problematic for investors that meet the eligibility threshold.

As a signatory to the UN Principles for Responsible Investment (PRI), Harbour is largely prepared for the new regime as PRI introduced mandatory TCFD-aligned reporting from 2020.

“A couple of years ago the UN PRI introduced a lot of TCFD-related questions into its annual assessment so there is already a lot of alignment when it comes to putting this information together,” Waayman confirms.

He adds that Harbour is on track with disclosure on its metrics and targets after achieving Toitu certification earlier this year.

This process helps participating entities identify the data they need to measure greenhouse-gas inventory, providing tools and resources to support the setting of real and achievable goals to reduce emissions. Toitu certification incorporates an independent audit to verify results as accurate and complete, with an annual cycle to “sustain a journey of continual reduction”.

Harbour has yet to prepare a formal TCFD-aligned report but Waayman says it has already completed much of the necessary work. He concludes: “As an investor, we often encourage companies to report against the TCFD. It would be a bit hypocritical if we did not hold ourselves to the same standard.”