Mainland China’s stock exchanges issue first guidelines on corporate sustainability disclosure
- The guidelines are aimed at ‘guiding listed companies to practice the concept of sustainability, and promoting the high-quality development of listed companies,’ said Beijing Stock Exchange
- They encourage companies to disclose their sustainability data based on four core areas – governance, strategy, risk management, and metrics and targets
According to the guidelines from the SSE and SZSE, constituent companies of the SSE 180, STAR 50, SZSE 100, and ChiNext indices, as well as those listed both home and overseas, are subject to compulsory reporting requirements, while other listed companies are encouraged to report on sustainability on a voluntary basis.
Companies listed on the BSE, which are mostly small and medium-sized enterprises, are also encouraged to submit sustainability reports voluntarily rather than being forced to.
The guidelines encourage listed companies on the three stock exchanges to analyse and disclose their sustainability-related information based on a framework comprising four core areas – governance, strategy, risk management, and metrics and targets – to help investors and key stakeholders fully understand their actions on sustainable development.