China has made significant progress in establishing a regulatory framework for Environmental, Social, and Governance (ESG) compliance, evolving over two decades. The first ESG policy, initiated in 2003, laid the […]

China has made significant progress in establishing a regulatory framework for Environmental, Social, and Governance (ESG) compliance, evolving over two decades. The first ESG policy, initiated in 2003, laid the groundwork for environmental information disclosure. By 2022, the State Council’s “Opinions on Comprehensively Promoting the Construction of a Beautiful China” emphasized the importance of ESG. This government endorsement advanced China’s focus on ecological governance and green economic development. 

Recent developments, like the Ministry of Finance’s 2023 draft “Corporate Sustainability Disclosure Standards,” marked a milestone in ESG regulations. These guidelines broaden ESG disclosure requirements beyond listed companies to include small and medium-sized enterprises. They focus on governance, strategy, and risk management, requiring timely and transparent reporting. 

Additionally, the Shanghai, Shenzhen, and Beijing stock exchanges have introduced guidelines mandating sustainable development reports for certain companies, emphasizing both financial and environmental impact. These reports must align with the company’s annual reports, fostering regulatory compliance. 

Although China’s ESG framework is still developing, it aligns closely with international standards, ensuring that mainland companies adhere to sustainable practices. This regulatory push is expected to promote widespread ESG awareness and implementation across industries. 

Source:  

https://law.asia/esg-compliance-asia-china-philippines-taiwan/ 

https://law.asia/china-esg-regulations-maturity/ 

https://www.china-briefing.com/news/china-releases-esg-reporting-standards-for-businesses/