Action Plan for ESG Disclosure of Chinese Listed Companies
The Shanghai Stock Exchange (SSE) releases an action plan for ESG disclosure of Chinese listed companies, aiming to provide guidance for high-quality ESG information disclosure for companies.
The Shanghai Stock Exchange plans to increase the quantity and quality of ESG information disclosure from 2024 to 2026, to help companies obtain green financing and promote ESG development.
Related Post: CDP Releases China Enterprise Climate Information Disclosure Report
Introduction to Action Plan for ESG Disclosure of Chinese Listed Companies
The Action Plan for ESG Disclosure of Chinese Listed Companies is divided into six parts, namely:
- Information disclosure capacity building: SSE will study domestic and international ESG information disclosure systems, release guidelines for the preparation of sustainable reports for listed companies in batches and reduce the difficulty of information disclosure. SSE will conduct ESG information disclosure training and offer training courses by industry and topic to meet the training needs of listed companies.
- Information disclosure services and regulation: SSE will conduct ESG themed activities to help listed companies strengthen communication with stakeholders such as investors, support industry organizations in publishing ESG information disclosure practice cases, and support ESG report assurance. SSE will also strengthen the verification of the authenticity, accuracy, and completeness of ESG information disclosure to address the issue of greenwashing.
- ESG disclosure and capital support for green transition of listed companies: SSE will support China Securities Index to launch more ESG indices, support fund companies to issue ESG themed products, and attract funds to invest in the field of sustainable development. SSE will encourage listed companies to achieve low-carbon transition by issuing ESG bonds and green bonds, and provide financing incentives for listed companies with high ESG ratings.
- ESG evaluation and rating of listed companies: SSE will support China Securities Index to dynamically update their ESG evaluation methods to enhance market recognition. SSE will also engage in exchanges with international rating agencies to support their evaluation of listed companies’ ESG performance and sustainability related risks and opportunities, to obtain objective, fair, and reasonable ESG rating results.
- Promotion and international exchange: SSE will invite listed companies with high ESG information disclosure quality to carry out activities and help them participate in ESG international forums to enhance the international influence of Chinese enterprises in ESG. SSE will also showcase its work on green finance and sustainable development and promote the ESG achievements of China’s capital market.
- ESG digitalization construction: SSE plans to develop ESG data collection functions, form an ESG database for listed companies, and support market data collection, infrastructure construction, and application. SSE will also explore the application of ESG data information in fund investment portfolios to provide reference for sustainable investment.
Reference:
The SSE formulates the Three-Year Action Plan on Improving ESG Information Disclosure Quality of Listed Companies on the SSE (2024-2026)
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