New Zealand passed a law on Thursday forcing banks to disclose the impact of their investments on climate change, calling it the world’s first step in making the financial sector’s environmental record more transparent.
Climate change minister James Shaw said the law meant banks, insurance companies and investment companies would compulsorily disclose the global warming record of their portfolios from next year.
Shaw, Glasgow’s premier later this month for the crippling climate talks hosted by the United Nations, said the disclosures would outline the real-world consequences of investment choices.
“This will encourage organizations to become more sustainable by incorporating the short, medium and long-term impacts 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 reporting for the financial sector,” he said.
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