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Climate change: China aims to introduce nationwide corporate ESG disclosure standards by 2030

  • The Ministry of Finance is seeking public opinion on draft guidelines that aim to monitor sustainability disclosures and push ESG development in China
  • The set of proposed guidelines released on Monday is the highest-level document to emerge so far on sustainability disclosure in China

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‘At present, most disclosures of sustainable information by Chinese enterprises are voluntary, and they rely on inconsistent standards,’ the Ministry of Finance said. Photo: AP
Yujie Xue
China aims to establish a national standard for corporate sustainability disclosure by 2030 as part of efforts to improve economic sustainability, tackle climate change and catch up with its global peers when it comes to environmental, social and governance (ESG) reporting.
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The Ministry of Finance has started seeking public opinion on a set of draft guidelines that aims to monitor such disclosures by companies and push ESG development in China, according to a notice on its website.

“At present, most disclosures of sustainable information by Chinese enterprises are voluntary, and they rely on inconsistent standards, which is not conducive to the verification, rating and supervision process, and for the supporting role sustainability disclosures play in investment decision-making and economic development,” the ministry wrote in a statement published on Monday that explains the background to the draft guidelines.

According to the proposal, China will introduce basic regulations for corporate sustainability disclosure and climate-related disclosure by 2027, with the aim of establishing a nationwide standard by 2030.

The release of the draft measures during the International Organization of Securities Commissions’ annual meeting taking place in Greece this week sends a strong message to global investors that China is committed to aligning with international reporting standards and taking ESG issues seriously, according to Bon Cheung, assistant manager of Civic Exchange, a Hong Kong public policy think tank.

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All but one of the world’s worst polluted cities are in Asia, 83 of which are in one country

All but one of the world’s worst polluted cities are in Asia, 83 of which are in one country
In February, the Beijing, Shanghai and Shenzhen stock exchanges published their first climate and sustainability disclosure guidelines. These mandate that some 400 listed companies, which account for more than half of the market value of China’s bourses, must publish sustainability reports covering their emissions and decarbonisation plans by 2026.
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