Michelle Qi June 29, 2021 09:44
Despite its later start, ESG practice is gaining momentum in China. After the China Securities Regulatory Commissions (CSRC) and the Shanghai Stock Exchange promoted new ESG guidelines in 2019, the CSRC and the Ministry of Environmental Protection asked listed companies and bond issuers to disclose ESG risks associated with their operations in 2020. More recently in May 2021, the CSRC released new guidelines requiring listed companies to make ESG disclosures in their annual and semi-annual reports. This entails providing transparency on environmental breaches as well as efforts to reduce carbon emissions and other ESG initiatives. Meanwhile, the Chinese central bank has indicated recently that it will support the development of a standardised international climate reporting framework after it started stress testing its financial institutions to identify those most at risk from climate change effects.
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