From TCFD to ISSB: What the Reporting Transition Means for New Zealand Companies

New Zealand has already taken a leadership role in climate disclosure by mandating climate-related reporting in line with the Task Force on Climate-related Financial Disclosures (TCFD). But the landscape is evolving. The External Reporting Board (XRB) has confirmed a shift toward the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards — a move that will bring New Zealand even closer to globally aligned, investor-grade sustainability reporting.

So what does this transition mean for reporting entities in Aotearoa? And how can your organisation prepare?

What’s Changing?

TCFD has served as the backbone of New Zealand’s climate reporting regime since the Climate-related Disclosures Amendment Act 2021 came into force. But in mid-2023, the ISSB released its first two sustainability standards:

• IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2 – Climate-related Disclosures

Both build on the TCFD framework but introduce greater specificity, standardisation, and global comparability.

The XRB has stated that it intends to align New Zealand’s climate reporting standards with the ISSB’s direction, beginning with updates to the Aotearoa New Zealand Climate Standards (NZ CS).

Key Differences Between TCFD and IFRS S1/S2

While both frameworks share core themes — governance, strategy, risk management, and metrics — IFRS S1 and S2 bring:

• A broader focus on sustainability beyond climate (via S1)
• Clearer definitions and disclosure requirements
• Industry-specific guidance through sector baselines
• Stronger emphasis on financial materiality
• Greater alignment with general-purpose financial reporting

For reporting entities, this means moving from principle-based disclosures under TCFD to more prescriptive and auditable reporting that ties directly to enterprise value.

Why It Matters for Your Business

New Zealand’s transition to ISSB-aligned standards is not just a regulatory shift — it’s a step toward global reporting comparability. Investors, rating agencies, and regulators increasingly expect high-quality, consistent disclosures, and the move to IFRS S1 and S2 will help New Zealand organisations meet those expectations.

But this also means your reporting processes must become more robust. Manual spreadsheets and informal narrative disclosures won’t be enough. Entities will need:

• Traceable data sources
• Assurance-ready processes
• Integration with risk and finance systems
• A clear link between sustainability and financial performance

How Speeki Can Help

Speeki helps New Zealand businesses navigate this shift with confidence. Our platform supports:

• Structured reporting aligned with both TCFD and IFRS S1/S2
• Customisable templates that evolve as standards are updated
• Data traceability and control for assurance readiness
• Support in linking sustainability strategy to enterprise value

Whether you’re just getting started or refining your reporting for a more complex future, Speeki helps you stay compliant, connected, and ahead of the curve.