NZX guidelines put NZ on a path to global best practice

10 May 2017
SOURCE:
Renee Graham, Communications Manager

The Sustainable Business Council welcomes the new Corporate Governance Codes released by the New Zealand Stock Exchange (NZX),asking companies to report on environmental, social and corporate governance matters.

Executive Director Abbie Reynolds says this introduces environmental, social and governance disclosure for listed companies.

"Around the world an increasing numberof stock exchanges are making it mandatory for companies to report on theirsustainability performance. This is because there is a greater demand fortransparency. Investors and consumers are pushing for it and want a moreholistic view of company performance.

"This move brings New Zealand more inline with a global shift toward greater transparency in the way businesses report and share their financial, social and environmental plans and performance. This is global best practice.

"We are pleased to see the NZX has adopted a number of the recommendations made by the Sustainable Business Council in its submission - including the 'report or explain' approach on hownon-financial targets are measured".

BusinessNZ Chief Executive Kirk Hope says New Zealand companies will benefit from sustainability reporting.

"Customers and investors increasingly want reporting on environmental and social performance, and NZX's guidelines will help companies fully inform stakeholders in a manner consistent with world best practice," Kirk Hope says.

SBC's Sustainable Leadership Manager Robert Perry says SBC members are already required to produce a sustainability report,integrated report or public account, which demonstrates progress on sustainability.

"The revised NZX Code underlines theprogress we are already seeing from all of our members, which include small tolarge businesses".

SBC can supply media with examples ofmember companies already reporting on sustainability.