New Zealand has become the first country to introduce a law that will require banks, insurers and investment managers to report the impacts of climate change on their business. All banks with total assets of more than NZ$1 billion ($703 million), insurers with more than NZ$1 billion in total assets under management, and all equity and debt issuers listed on the country’s stock exchange will have to make disclosures. Around 200 of the country’s biggest companies and several foreign firms that meet the NZ$1 billion threshold will come under the legislation. The bill will require financial firms to explain how they would manage climate-related risks and opportunities, with disclosures set to begin by 2023. Those unable to disclose will have to explain their reasons.

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Reuters