1 00:00:00,080 --> 00:00:02,240 Speaker 1: But now the number of companies that will be required 2 00:00:02,240 --> 00:00:05,600 Speaker 1: to make climate related disclosures will be significantly slashed. The 3 00:00:05,640 --> 00:00:08,639 Speaker 1: government will now only require listed issuers with a market 4 00:00:08,640 --> 00:00:11,200 Speaker 1: cap of more than a billion dollars to make disclosures. 5 00:00:11,240 --> 00:00:14,320 Speaker 1: Currently the threshold of sixty million dollars. Gene TIBs Trainy 6 00:00:14,400 --> 00:00:17,840 Speaker 1: is The Herald's Wellington Business editor and with US hygieneh HI, 7 00:00:17,920 --> 00:00:20,440 Speaker 1: he is a complete radio silence from the Greens today. 8 00:00:21,600 --> 00:00:24,080 Speaker 2: Well I was a bit surprise. This is a fairly 9 00:00:24,120 --> 00:00:28,360 Speaker 2: big announcement the government made. We published news of it 10 00:00:28,400 --> 00:00:32,559 Speaker 2: at five am. This was a climate reporting regime that 11 00:00:32,680 --> 00:00:38,080 Speaker 2: James Shaw introduced. Basically, James Shaw's thinking was, if we 12 00:00:38,120 --> 00:00:42,320 Speaker 2: get the country's biggest companies, banks, insurers, fund managers, you know, 13 00:00:42,320 --> 00:00:44,400 Speaker 2: the people who run our key we savers, if we 14 00:00:44,440 --> 00:00:48,640 Speaker 2: get them to disclose what their emissions are, you know, 15 00:00:48,720 --> 00:00:51,520 Speaker 2: that's a good bit of sunlight and that might prompt 16 00:00:51,520 --> 00:00:54,320 Speaker 2: them to try to do business in a way that's 17 00:00:54,320 --> 00:00:58,120 Speaker 2: more environmentally friendly. And you know that reporting is also 18 00:00:58,160 --> 00:01:03,920 Speaker 2: good because that can you know, if companies are looking 19 00:01:04,000 --> 00:01:07,200 Speaker 2: at investing in climate friendly things, they can see what 20 00:01:07,319 --> 00:01:10,679 Speaker 2: the emissions are and you know, make investment decisions accordingly. 21 00:01:10,959 --> 00:01:14,120 Speaker 2: You know, banks can also do that, they can lend 22 00:01:14,440 --> 00:01:16,080 Speaker 2: to people who are trying to cut a mission. So 23 00:01:16,160 --> 00:01:18,680 Speaker 2: that was the thinking. James Shaw put a lot of 24 00:01:18,760 --> 00:01:20,680 Speaker 2: weight on this regime. You know, it's been years in 25 00:01:20,720 --> 00:01:22,960 Speaker 2: the making, it's only been up and running for a 26 00:01:23,000 --> 00:01:26,600 Speaker 2: short time. When the government announced this morning that it 27 00:01:26,720 --> 00:01:30,720 Speaker 2: was radically you know, well not radically but quite substantially 28 00:01:31,240 --> 00:01:34,399 Speaker 2: watering down that regime, I would have thought the Greens 29 00:01:34,440 --> 00:01:39,240 Speaker 2: would have been out there straight away, you know, pointing 30 00:01:39,280 --> 00:01:42,680 Speaker 2: this out. But the Greens did not release a press 31 00:01:42,720 --> 00:01:46,720 Speaker 2: release or statement on this today. So you know, I 32 00:01:46,760 --> 00:01:49,639 Speaker 2: asked them about I said, what went on? It sounds 33 00:01:49,720 --> 00:01:51,840 Speaker 2: like it might have just been logistics. They didn't have 34 00:01:51,960 --> 00:01:54,480 Speaker 2: the staff to do it. But you know, one does 35 00:01:54,600 --> 00:01:58,600 Speaker 2: have to question whether the Greens emphasis is where it 36 00:01:58,760 --> 00:02:02,920 Speaker 2: is compared to when James Shaw was at the Home 37 00:02:02,960 --> 00:02:03,320 Speaker 2: of the Bay. 38 00:02:03,600 --> 00:02:06,000 Speaker 1: Yeah, not focused enough on the green part of their name. 39 00:02:06,080 --> 00:02:08,639 Speaker 1: Now do you think the removal of this from the 40 00:02:08,720 --> 00:02:12,160 Speaker 1: smaller businesses will encourage listings on the zet X by 41 00:02:12,280 --> 00:02:14,359 Speaker 1: businesses that perhaps may have been put off by this. 42 00:02:15,360 --> 00:02:17,240 Speaker 2: Well, you know, I thought this was quite a big call. 43 00:02:17,440 --> 00:02:21,040 Speaker 2: So this is that the z X they said that actually, 44 00:02:21,120 --> 00:02:24,400 Speaker 2: because these disclosure rules are so onerous, you know to 45 00:02:24,480 --> 00:02:28,079 Speaker 2: try to calculate your missions, and also directors of companies 46 00:02:28,160 --> 00:02:32,919 Speaker 2: can be personally liable if rules are broken. Int X 47 00:02:33,000 --> 00:02:37,000 Speaker 2: is saying that that prevented companies from wanting to list. 48 00:02:37,360 --> 00:02:41,480 Speaker 2: I think that's a pretty big statement to make. I 49 00:02:41,600 --> 00:02:45,200 Speaker 2: haven't heard this evidence, but that there might be instances 50 00:02:45,280 --> 00:02:48,160 Speaker 2: like that. I suspect companies are not listening for a 51 00:02:48,280 --> 00:02:50,359 Speaker 2: raft of reasons, and I can't see that this is 52 00:02:50,400 --> 00:02:53,079 Speaker 2: the main one. But you know, no doubt, I think 53 00:02:53,440 --> 00:02:56,080 Speaker 2: this decision by the government is just one more little 54 00:02:56,320 --> 00:02:59,520 Speaker 2: bit of red tap or difficulty it's trying to remove 55 00:02:59,639 --> 00:03:02,639 Speaker 2: to try to stimulate growth, get businesses listing on the 56 00:03:02,760 --> 00:03:05,160 Speaker 2: enz X, which is not having a great time at 57 00:03:05,200 --> 00:03:05,520 Speaker 2: the moment. 58 00:03:05,880 --> 00:03:08,880 Speaker 1: Now you've had a couple of days to let the 59 00:03:08,960 --> 00:03:11,600 Speaker 1: Labor Future Fund really sink into your brain. What's your 60 00:03:11,840 --> 00:03:14,200 Speaker 1: Because I think you struck on something Janey earlier this 61 00:03:14,280 --> 00:03:16,440 Speaker 1: week that I think is very important, which is that 62 00:03:17,000 --> 00:03:18,760 Speaker 1: it's almost it feels like an attempt to kind of 63 00:03:18,800 --> 00:03:20,800 Speaker 1: cozy up to New Zealand first ahead of the coalition 64 00:03:21,120 --> 00:03:25,560 Speaker 1: potential coalition talks next election. There is that really do 65 00:03:25,680 --> 00:03:27,760 Speaker 1: you think the primary motivator here. 66 00:03:28,680 --> 00:03:34,920 Speaker 2: Oh, look, I think it was a political policy. I 67 00:03:34,960 --> 00:03:37,000 Speaker 2: thought that the main thing that really struck me was 68 00:03:37,040 --> 00:03:40,240 Speaker 2: that it puts the spotlight on asset sales, because there 69 00:03:40,280 --> 00:03:44,360 Speaker 2: are many ways governments can invest in businesses and lend 70 00:03:44,400 --> 00:03:46,640 Speaker 2: to businesses. Labor did that a lot when it was 71 00:03:46,680 --> 00:03:48,600 Speaker 2: in government. There are many ways to do it that 72 00:03:48,880 --> 00:03:52,520 Speaker 2: don't involve coming up with a complicated scheme involving our 73 00:03:52,640 --> 00:03:56,160 Speaker 2: state owned enterprises. The difference with this scheme is that 74 00:03:56,240 --> 00:04:00,880 Speaker 2: it links the SOEs to the fund and by doing that, 75 00:04:01,000 --> 00:04:05,760 Speaker 2: it's saying Labor wouldn't get rid of certain state owned enterprises. 76 00:04:06,040 --> 00:04:08,360 Speaker 2: So I think that then puts the spotlight on National 77 00:04:09,000 --> 00:04:12,119 Speaker 2: which is keen to do asset recycling, you know, which 78 00:04:12,200 --> 00:04:14,440 Speaker 2: is when we might celibate here to buy a bit 79 00:04:14,520 --> 00:04:18,120 Speaker 2: they're free out money. So I thought maybe from that 80 00:04:18,200 --> 00:04:21,600 Speaker 2: perspective they ticked the box in terms of politics, and 81 00:04:21,800 --> 00:04:24,080 Speaker 2: as you say here that in terms of you know, 82 00:04:24,200 --> 00:04:26,640 Speaker 2: coming up with something that aligns them with the New 83 00:04:26,720 --> 00:04:31,240 Speaker 2: Zealand first, which is a good strategy leading up to 84 00:04:31,279 --> 00:04:34,200 Speaker 2: the election. I think, you know, to party Maori and 85 00:04:34,520 --> 00:04:37,120 Speaker 2: the Green Party have drifted quite far from where they 86 00:04:37,200 --> 00:04:40,800 Speaker 2: were previously potentially in such a way that would put 87 00:04:40,800 --> 00:04:44,080 Speaker 2: off a lot of centrist voters and that labor would 88 00:04:44,120 --> 00:04:44,520 Speaker 2: be courting. 89 00:04:44,680 --> 00:04:46,440 Speaker 1: Yeah, I think you might be right, Jinny. Thanks very much, 90 00:04:46,440 --> 00:04:48,960 Speaker 1: really appreciate your times. Jenna tips Traney, who's the Wellington 91 00:04:49,440 --> 00:04:53,480 Speaker 1: Business Editors. For more from Heather Duplassy Allen Drive, Listen 92 00:04:53,600 --> 00:04:56,480 Speaker 1: live to news talks the'd be from four pm weekdays, 93 00:04:56,760 --> 00:04:58,920 Speaker 1: or follow the podcast on iHeartRadio.