"World-First" Law In New Zealand Will Make Banks Report Climate Impact

Climate Change Minister James Shaw said the law meant banks, insurance companies, and investment firms would make mandatory disclosures about their portfolios' global warming record from next year.

'World-First' Law In New Zealand Will Make Banks Report Climate Impact

Prime Minister Jacinda Ardern had called climate change "nuclear free moment of our generation." (File)

Wellington:

New Zealand passed a law Thursday forcing banks to reveal the impact of their investments on climate change, describing it as a world-first move to make the financial sector's environmental record more transparent.

Climate Change Minister James Shaw said the law meant banks, insurance companies, and investment firms would make mandatory disclosures about their portfolios' global warming record from next year.

Shaw, who will head to Glasgow later this month for crunch climate talks hosted by the United Nations, said the disclosures would outline the real-world consequences of investment choices.

"It will encourage entities to become more sustainable by factoring the short, medium, and long-term effects of climate change into their business decisions," he said in a statement.

"New Zealand is a world leader in this area and the first country in the world to introduce mandatory climate-related reporting for the financial sector," he added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

.