- Laws of Fiji

[CLI 96] Disclosure of financial risks of climate change and measures adopted to reduce them by companies and managed investment schemes96

(1) All companies and managed investment schemes that are required to prepare financial statements and a directors’ report under section 388 of the Companies Act 2015 must disclose, in their financial statements and directors’ report—

(a)any material financial risks to the company or managed investment scheme arising from climate change risks and climate change opportunities;
(b)measures adopted by the company or managed investment scheme to reduce its exposure to these material financial risks;
(c)how consideration of climate change risks are integrated into investment policies, risk management policies and investment decision-making processes; and
(d)the climate change impacts of the activities of the company or managed investment scheme activities and of the use of goods and services it produces and the extent to which the company or managed investment scheme complies with the long-term temperature goal in Article 2 of the Paris Agreement.

(2) For the purposes of this Part, the financial risks arising from climate change risks and climate change opportunities may include—

(a)impacts on revenue arising from the impacts of climate change risks on demand for products and services;
(b)impacts on expenditure due to costs arising from climate change risks;
(c)impacts on the valuation of assets and liabilities arising from the impacts of changes in policies, technology and market dynamics on supply and demand; and
(d)impacts on capital and financing, including debt and equity structure (for example by increasing debt levels to compensate for reduced operating cash flows or for new capital expenditures) and the ability to raise new debt and refinance.