The mainstreaming of climate change and the impact on directors' duties

The New Zealand Government recently enacted legislation that will make climate risk disclosure mandatory for approximately 200 organisations, including listed companies and certain other large entities. The article outlines the main features of the new laws. The article also reviews the current requirements on boards to consider climate-related matters in their deliberations and in corporate disclosures and concludes that the new legislation will provide increased protections for directors. However, globally and within New Zealand, there are evolving pressures on directors to consider other non-financial matters and New Zealand corporate law needs to be reformed to accommodate such pressures.