Z Energy calls for change in non-financial reporting
By Paul McBeth
Z Energy, the petrol station chain seeking to takeover rival Chevron New Zealand's brands, wants more indepth company reporting on non-financial measures including workplace safety, and more fulsome executive pay disclosure, which would bring the local market's obligations in line with Australia.
In a December 17 submission to the NZX's review of corporate governance reporting requirements, Z called for "significant change" in non-financial reporting measures, which it claims would give investors a better idea of how the Wellington-based company generates long-term value. The petrol retailer also wants greater disclosure in senior executive remuneration and company specific health and safety performance.
Last November, stock market operator NZX sought feedback on proposals to broaden corporate governance rules for listed companies, ahead of a wider review of listing rules set for this year.
NZX wants to bring governance requirements into line with best practice, and is looking at a Financial Markets Authority corporate governance principles and guidelines handbook published in December 2014 and those that apply to ASX-listed companies.
Z said the local stock exchange is well placed to improve the quality of ESG reporting, which is "increasingly becoming a part of the investment decision-making process, and suggested the NZX Code should recommend issuers report in relation to corporate social responsibility and sustainability.
That would put their financial performance in a wider social and environmental context, provide a picture of the social value it generates, explain how they generate value in the short-, medium-, and long-term, increase accountability on their non-financial impact, and provide investors with information to assess a company's longer term prospects.
Z also said there was a "significant gap" in the reporting regime over risk management, and would benefit with the inclusion of how firms identify and manage risks to their business.
The company's shares rose 1.6 percent to $6.41, and have dropped 6.1 percent this year.