New Zealand is to become the world's first nation to bring in a law constraining its monetary firms to report on the impacts of climate change. The nation wants to be carbon unbiased by 2050 and says the financial sector has to play its part.
Banks, insurers, and finance supervisors can do this by knowing the natural impact of their investments, says its Climate Change Minister James Shaw. Legislation is anticipated to get its first reading this week.
"This law will bring climate risks and resilience into the heart of financial and business decision making," said Mr. Shaw. The law will constrain monetary firms to evaluate not only their own investments but also to assess the companies they are loaning money to, in terms of their environmental impact.
Once the law is passed, companies will have to begin reporting on the climate change effect in 2023. Banks have come under increasing pressure to step up endeavors to assist battle climate change.
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