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- New ESG guidance issued: The Shanghai Stock Exchange (SSE) introduced two supplementary guides—Guide No.4 and Guide No.13—to improve the understanding and application of its ESG Guidelines No.14.
- Record-breaking ESG reporting: In 2024, 52% of SSE-listed companies disclosed ESG reports, a 6% increase year-on-year, with 1,193 companies participating.
- Focus on climate disclosure: New tools and sample texts in the guidance help companies address climate risks, carbon emissions, and sustainability governance.
Expanded ESG Framework
The SSE, under the China Securities Regulatory Commission (CSRC), released Guide No.4 for listed companies and Guide No.13 for the STAR Market. These documents enhance the implementation of Guidelines No.14, introduced earlier, by offering specific examples and disclosure focuses to support ESG reporting quality.
Key highlights of the updated framework include:
- Sample Disclosures: Practical templates and disclosure frameworks help companies address climate change and develop sustainability governance systems.
- Technical Insights: Detailed explanations of ESG standards, including climate-related risks, financial impacts, and carbon emissions scope, assist companies in aligning with best practices.
- Voluntary Adoption: While optional, the guidance encourages companies to use provided templates to improve their sustainability reports.
Related Article: China Releases First Corporate Sustainability Disclosure Standards
Achievements in ESG Reporting
- Improved ESG participation: Over half of SSE-listed companies released sustainability or social responsibility reports in 2024, with a significant year-on-year increase.
- Global recognition: By the end of 2024, 342 companies had MSCI ESG ratings, including 8 companies rated AAA, marking global excellence.
- Investment milestones: The number of products tracking ESG indexes reached 89, with green ETFs accounting for 45, totaling over 130 billion yuan in assets under management.
Looking Ahead
The SSE plans to develop further ESG guidance based on market needs, collect best practices, and improve the adaptability and operability of its rules. These efforts aim to foster higher-quality ESG disclosures among listed companies and advance the global competitiveness of China’s sustainable finance landscape.
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