Governance news bites – 22 August

Governance is often in the headlines and the past few weeks have been no exception. Recent news related to governance includes: 

Climate Commission calls for enhanced adaptation measures

The Climate Change Commission He Pou a Rangi has released its latest report on New Zealand’s National Adaptation Plan, highlighting the urgent need for improved adaptation strategies to combat the impacts of climate change. The report outlines critical areas where action is needed, such as bolstering infrastructure resilience, protecting biodiversity and enhancing community preparedness. The commission warns that without decisive and coordinated action, New Zealand risks falling short of its adaptation goals, leading to increased vulnerability to climate risks.
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Australia passes landmark climate reporting legislation

Australia has taken a significant step towards enhancing corporate transparency on climate risks with the Senate's passage of the Climate Reporting Bill. This landmark legislation mandates large corporations and financial institutions to disclose their climate-related financial risks in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The new law applies to companies with over AUD 500 million in revenue and financial institutions managing more than AUD 50 billion in assets, requiring them to report on governance, strategy, risk management and metrics related to climate risks and opportunities.  
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Mercer Australia fined for greenwashing in landmark case

In a significant development in the financial sector, Mercer Australia has been fined A$11.3 million (NZ$12.4 million) for greenwashing, marking a first in regulatory enforcement against misleading sustainability claims. The Australian Federal Court found Mercer misrepresented the environmental, social and governance (ESG) credentials of some of its investment products. This case sets a precedent in the Asia-Pacific region, highlighting the growing scrutiny on corporate claims around sustainability and ESG.
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Gene technology regulation shift

The New Zealand Government has announced plans to lift the long-standing ban on gene technology, a move that is expected to have significant implications for the country’s agriculture and biotechnology sectors. The change in policy is driven by advancements in gene-editing technologies, which promise to enhance crop yields, improve disease resistance and reduce environmental impact. The Government’s decision follows extensive consultation with scientific experts and industry stakeholders and is seen as a step towards modernising New Zealand’s approach to agricultural innovation.
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Government acts on disability system review findings

The New Zealand Government has committed to a series of reforms following a comprehensive review of the country’s disability support system. The review identified several areas in need of improvement, including better coordination of services, increased funding for disability support and greater emphasis on individualised care. The Government’s response includes the establishment of a new agency dedicated to overseeing the implementation of these reforms and ensuring the voices of disabled people are at the centre of policy decisions.
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