New Zealand has become the first country to pass legislation requiring banks, insurers, and investment managers to report the impact of climate change on their businesses, Reuters reported referring to minister for climate change James Shaw.

All banks with combined assets of over NZ $ 1 billion ($ 703 million), insurers with total assets under management of over NZ $ 1 billion, and all equity and debt issuers listed on the country's stock exchange will disclose information.

“We simply cannot get to net-zero carbon emissions by 2050 unless the financial sector knows what impact their investments are having on the climate,” Shaw said in a statement.

“This law will bring climate risks and resilience into the heart of financial and business decision making.”

The bill, which has been introduced to the country's parliament and is expected to be presented in its first reading this week, requires financial companies to explain how they will manage climate-related risks and opportunities.

About 200 of the country's largest companies and several foreign firms that reach the NZ $ 1 billion ($ 703 million) threshold will be subject to the law.