China’s Ministry of Finance has announced a draft guideline to unify corporate sustainability disclosures, aiming to establish a nationwide standard by 2030. This move aligns with the global emphasis on Environmental, Social, and Governance (ESG) issues and aims to enhance the international competitiveness of Chinese companies. Currently, corporate sustainability disclosures in China are voluntary and lack uniform standards. The draft guideline, titled “Corporate Sustainability Disclosure Standards — Basic Standards,” sets general requirements for disclosures and will gradually extend from listed to non-listed companies, moving from voluntary to mandatory over time. By 2027, China plans to introduce basic and climate-related corporate sustainability standards. This initiative is part of a broader push to integrate ESG considerations into China’s financial and regulatory systems. As of April 2024, 1,938 A-share listed companies have published ESG reports, with significant growth in ESG investments and financial products. The Ministry of Finance is seeking public opinions on the draft guideline until June 24, 2024.
Learn more about China’s efforts to standardize corporate sustainability disclosures and its impact on global trade and investment here.
