China’s proposed ESG disclosure rules could go further to meet foreign investors’ needs, asset managers say
- Better ESG disclosure would facilitate allocation of more funds to mainland-listed shares as sustainable investing continues to gain traction among investors, fund managers say
- China’s markets watchdog closed a consultation on June 7 on draft revisions to listed companies’ disclosures in annual and semi-annual reports
International asset managers have welcomed a proposal by China’s regulator to enhance listed firms’ environment, social and governance disclosures, but have called for more detailed guidance on ESG reporting.
“We believe companies would benefit from more detailed guidance [on ESG disclosures], which could refer to recognised international frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board,” Norges Bank Investment Management said in a letter to the China Securities and Regulatory Commission on June 7.
“The CSRC could also consider introducing a core set of disclosure requirements [which] would help improve the quality and comparability of disclosures.”
For sustainability information to be useful in asset allocation decision making across a diversified portfolio, consistency and comparability of data across companies and over time is important, it added.