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Chinese stock exchanges release ESG disclosure guidelines (2024)
| Environmental, social, and corporate governance |
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The three major stock exchanges in mainland China have released their first guidelines for ESG-related disclosures. The guidelines will be mandatory for larger companies in two years, while small and medium-sized companies will be encouraged to report data voluntarily:
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China’s three major stock markets, the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE), announced the publication of new sustainability reporting guidelines for listed companies, including a new requirement for hundreds of larger cap and dual-listed issuers to begin mandatory disclosure on a broad range of ESG topics in 2026. … According to the new guidelines released by the Chinese exchanges, reporting requirements for companies will encompass four 'core content' topics, including governance, strategy, impact, risk and opportunity management, and indicators and goals. The listed topics indicate that the exchanges are adopting a 'double materiality' approach to sustainability reporting, which includes reporting both on the risks and impact of sustainability issues on an enterprise, as well as on the enterprises’ impacts on environment and society. … The guidelines outline reporting requirements across a broad range of environmental, social and governance categories, including climate change, ecosystem and biodiversity protection, circular economy, energy use, supply chain security, and rural revitalization, as well as anti-corruption and anti-bribery, among others. Notably, the rules include reporting on Scope 3 value chain greenhouse gas emissions, which has been a key point of controversy for the SEC as it prepares its final climate rule, as companies have raised concerns about the unreliability of, and difficulty in collecting, value chain emissions data.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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