Strange JamieJAMIE STRANGE (Labour—Hamilton East): Madam Speaker thank you for the opportunity to take a call on the first reading of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill. I'd like to acknowledge the Minister the Hon Dr David Clark for bringing this bill to the House and as he said this is world-leading legislation. I'd like to also acknowledge the Hon James Shaw for the work that he has done in this area. I actually first met the member in 2013 in the Coromandel and he has been consistent with his messaging the whole time that I have known the member the Hon James Shaw so I'd to acknowledge the work that he has done to in effect lead us towards this point. Climate change is real. Climates have always been changing but this time there's one big difference: the changes are principally man-made. The issue has become urgent because the pace of change is accelerating and in terms of the financial industry the financial industry has a twofold responsibility. On one hand it needs to prepare itself for the negative effects that climate change will have on its business and on its customers. On the other hand the financial industry can play a significant role itself in terms of mitigating the economic risks and entering the low-carbon economy by providing appropriate products and services. It's that second part that this bill seeks to address here which is in terms of the financial industry playing an active role in terms of mitigating climate change. Governments are starting to introduce policies to tackle the causes and combat the effects of greenhouse emissions and these policies will alter the economics of entire industries. They will effect company share prices both positively and negatively and the Minister alluded to that. Climate change policies will have an effect on a number of industry sectors. The most sensitive sectors as I see it are either energy-intensive such as cement aviation metals or energy industries—as I believe my colleague may talk about in his contribution—such as oil gas coal and power utilities. Early action is needed to provide greater certainty for businesses long-term investment and technological change. That leads me on to the bill and the purpose of this bill which is how the bill introduces a mandatory climate change disclosure regime for specified FMC reporting entities under the Financial Markets Conduct Act. I believe that many businesses are not aware of the impact climate change has on their businesses strategies and financial positions.Andrew Bayly: What an outrageous statement.JAMIE STRANGE: The member opposite says that that is outrageous. I look forward to his contribution and I thank the member for the support of his party as well. I don't believe it is so outrageous because while this issue has been around for a long time it's really just in the past few years that we have seen businesses in a way really open their eyes to this issue and realise that those businesses can play a leading role in this area as can our country. I just highlight quickly the four main things the bill does. It requires climate reporting entities to prepare climate-related disclosures and this will give more information to those businesses around their carbon footprint and the role that they're playing in terms of their investments. It enables the External Reporting Board (XRB) to prepare and issue climate-related reporting standards. The Financial Markets Authority will be the independent regulator for specified FMC reporting entities and the fourth thing the bill does is enables the XRB to issue guidance on non-financial reporting. So I will leave my contribution there but just acknowledge that as a country we have been world-leading in the past in many areas. I am proud of the work that the Minister has done on this piece of legislation as we are the first country in the world to bring this legislation to Parliament and while we may not be the biggest country in the world we certainly can play a leading role in this area. I commend this bill to the House.