Aotearoa New Zealand is the first country in the world to introduce legislation to require all large listed companies and large financial institutions to report on their climate-related risks in accordance with standards. This bill will make a significant contribution to the transition towards carbon neutrality by 2050. While we all have a part to play in reaching that goal, the financial sector is in a position to generate real and significant momentum towards that goal. This legislation ensures that financial organisations disclose and ultimately take action to mitigate climate-related risks, and take advantage of opportunities. It will do this by requiring the largest and most important businesses participating in New Zealand financial markets to disclose clear, comparable, and consistent information about the risks and opportunities presented by climate change. The current lack of reliable information about the impact of climate change on businesses is serious, because it can lead to the mispricing of assets, and the misallocation of capital. Investors, lenders, and insurance underwriters cannot make informed decisions if information about material risks is unavailable. The asset mispricing and capital misallocation risks also raise financial stability concerns, because markets can be vulnerable to abrupt corrections.