Published on 20 Aug 2025

Strengthening the Case for Environmental Reporting Reform: Independent Review of Cost Benefit Analysis

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15 JASON 1x1 PORTRAIT 1
Jason Carpenter Director Business Development (NZ) Contact me
22 NICK 1x1 PORTRAIT 1
Nick Leffler Organisational Design + Change Lead Contact me

The Ministry for the Environment had prepared 10 proposed amendments to the Environmental Reporting Act 2015 to improve New Zealand’s environment reporting system. To ensure their proposals were financially sound and defensible, the Ministry commissioned Allen + Clarke to complete an independent Cost Benefit Analysis.

Our team delivered a robust Cost Benefit Analysis that gave decision-makers clear statistical confidence in the cost estimates, enabling the Ministry to move forward with credible, defensible financial projections.

 

  • Our statistical modelling provided confidence bands showing the probability distribution of potential costs, giving decision-makers a clearer understanding of financial risks.
  • We created a comprehensive model that captured both direct and overhead costs, addressing concerns about whether the full resource implications had been considered.

Finding ways to measure benefits

Our approach to Cost Benefit Analysis focused on identifying true costs and providing probability distributions for potential costs. 

  • Website Generic Icons 1200x1200 GREEN 31 We developed a comprehensive FTE costing model that incorporated both direct and overhead costs, providing a realistic picture of the full costs required for each amendment.
  • Website Generic Icons 1200x1200 GREEN 31 Rather than relying on point estimates, we applied Monte Carlo simulations to produce confidence bands showing the probability distribution of potential costs. This gave decision-makers a clear understanding of the financial risks and cost scenarios.
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Our analysis built trust in the reform proposal

Our work delivered three significant outcomes for the Ministry:

  • Enhanced credibility - the statistical confidence bands for costs enabled the Ministry to present a more nuanced and defensible picture of financial implications. 

  • Improved stakeholder engagement - more robust costings facilitated better conversations with other agencies about resource implications. 

  • Maintained momentum - our rapid delivery allowed the Ministry to maintain their timeline for the consultation process while significantly enhancing the quality of financial analysis. 

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Interconnected coloured pathways forming abstract network diagram

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