China has officially released a new Corporate Climate Reporting Standard, marking a significant step toward more structured, comparable, and transparent climate disclosures by companies operating in the country.
Issued by China’s Ministry of Finance in coordination with financial and regulatory authorities, the Corporate Sustainable Disclosure Standard No. 1 – Climate (Trial) establishes a formal framework for reporting climate-related risks, opportunities, and impacts.
What the New Standard Covers
The climate standard follows a structure aligned with global best practices, closely reflecting the IFRS S2 Climate-related Disclosures framework. It requires companies to report on:
- Governance of climate-related risks and opportunities
- Strategy and resilience under different climate scenarios
- Risk and opportunity management processes
- Metrics and targets, including emissions-related data
Notably, the standard also introduces climate impact disclosures, requiring companies to report how their operations and value chains affect climate change—going beyond traditional financial risk reporting.
Voluntary Today, Mandatory Over Time
The standard is currently introduced on a trial and voluntary basis, but authorities have confirmed a phased expansion plan:
- Scope will extend from listed to non-listed companies
- Coverage will broaden from large enterprises to SMEs
- Disclosures will evolve from qualitative to more quantitative requirements
Industry-specific guidance is also under development for high-impact sectors such as power generation, steel, cement, coal, and automotive manufacturing.
Why This Matters
China’s new climate reporting standard signals a clear move toward mandatory, standardised climate disclosures in one of the world’s largest economies. By aligning with international frameworks while incorporating climate impact reporting, the standard aims to:
- Improve comparability and reliability of climate data
- Support capital allocation toward low-carbon activities
- Reduce the risk of greenwashing through consistent reporting rules
Companies with operations, supply chains, or investments linked to China should begin preparing early to align their climate data, governance, and reporting processes.
How EcoActive Supports Climate Reporting Readiness
EcoActive helps organisations manage evolving climate disclosure requirements by providing a structured platform for:
- Centralised climate and ESG data management
- Alignment with global frameworks such as IFRS, CSRD, and regional standards
- Traceable, audit-ready disclosures across reporting cycles
Call to Action
As climate reporting expectations continue to rise globally, early preparation is key.
Explore how EcoActive can support structured, future-ready climate disclosures.
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