Core Viewpoint - The establishment of a unified sustainable disclosure framework in China, based on international standards, is set to enhance transparency and attract international capital, thereby promoting sustainable economic growth [1][4][5]. Group 1: Sustainable Disclosure Standards - The ISSB has released its first two sustainable disclosure standards, IFRS S1 and IFRS S2, which provide a global benchmark for sustainable financial information disclosure [2][3]. - China's sustainable disclosure standards are designed to align with ISSB standards, ensuring that they reflect international best practices while being tailored to China's unique context [2][4]. Group 2: Impact on Capital Markets - The implementation of ISSB standards in China is expected to improve the transparency of Chinese enterprises in the international market, enhancing their attractiveness to foreign investors [4][5]. - A total of 36 countries and regions have announced their adoption or intention to adopt ISSB standards, representing 60% of global GDP and greenhouse gas emissions, which underscores the significance of these standards in the global market [5]. Group 3: Role of China in Global Standards - China has actively participated in the development of ISSB standards, contributing to the global agenda for sustainable disclosure [6][7]. - The establishment of a Beijing office by the IFRS Foundation and the formation of a cross-departmental working group by the Chinese government demonstrate China's commitment to enhancing the quality and transparency of climate-related financial information [7].

Core Insights - China is enhancing global sustainable information disclosure through improved mechanisms and increased participation from institutions and enterprises [1][2] - The Ministry of Finance is actively involved in developing sustainable disclosure standards that align with international guidelines while reflecting China's unique context [1][3] - The ISSB chairman supports China's efforts in establishing unified sustainable disclosure standards based on ISSB guidelines, highlighting China's commitment to improving climate-related financial information quality [1][2] Group 1: Sustainable Disclosure Standards - The Ministry of Finance and the Ministry of Ecology and Environment released the first specific guideline on climate-related disclosures, marking a significant step in global climate governance [1][2] - The disclosure rate of mandatory reporting entities has increased from 88.59% in 2022 to 94.42% in 2024, indicating a shift towards balancing cost, quality, and effectiveness in sustainable information disclosure [1][2] Group 2: Financial Sector Initiatives - Major commercial banks and financial institutions in China are actively publishing environmental information disclosure reports, with banks showing higher quality and quantity in disclosures compared to non-bank financial institutions [2][3] - The People's Bank of China is revising sustainable disclosure guidelines to enhance comparability and interoperability with international standards, aiming to reduce compliance costs for enterprises [2][3] Group 3: Technological Integration - Chinese enterprises are leveraging big data and artificial intelligence to lower the costs of sustainable information disclosure, with some even automating report generation [4] - The integration of sustainable disclosure with incentives such as bonds and favorable loan rates is accelerating the process and creating a collaborative ecosystem [4]

Core Viewpoint - The 2025 Beijing International Sustainable Conference emphasizes the importance of implementing global standards for sustainable information disclosure, aiming to enhance transparency for investors and facilitate informed decision-making in rapidly changing markets [1] Group 1: ISSB and Global Standards - The ISSB Chair, Emmanuel Faber, highlighted that ISSB standards provide transparent information for investors to identify value chain risks and opportunities across time dimensions [1] - Increasing collaboration between regulatory bodies and the International Organization of Securities Commissions (IOSCO) is recognized as a means to enhance capital acquisition and trade capabilities within jurisdictions [1] - Significant progress has been made by various jurisdictions in aligning with ISSB standards, representing a substantial portion of global capital market value [1] Group 2: China's Commitment to Sustainable Disclosure - The Director of the Accounting Department of the Ministry of Finance, Lin Qiyun, stated that the Ministry is actively participating in the international governance of sustainable disclosure and aims to develop a unified national sustainable disclosure standard by 2030 [1] - The release of the basic and climate standards consultation drafts marks a solid step forward in establishing a unified sustainable disclosure framework in China [1] Group 3: Financial Institutions and Environmental Disclosure - The Director of the Research Bureau of the People's Bank of China, Wang Xin, mentioned that the PBC is revising the "Guidelines for Sustainable Information Disclosure of Financial Institutions" to enhance comparability and interoperability with international standards [1] - The guidelines will expand disclosure scope and focus on the indirect environmental impacts of investment activities, aiming to reduce disclosure costs for market participants [1] - The PBC is also working on a biodiversity finance directory to support ecological protection and sustainable project development [1] Group 4: China's ESG Development - The President of the China Enterprise Reform and Development Research Association, Peng Huagang, noted that China is integrating into the global ESG development wave through systematic innovation [1] - China has achieved significant milestones in ESG development, establishing a unique framework and practical approach [1] - The International Financial Reporting Standards Foundation's Beijing office plays a crucial role in promoting standards implementation and fostering cooperation among stakeholders in the region [1]

Core Viewpoint - The increasing global focus on Environmental, Social, and Governance (ESG) issues is driving the need for enhanced corporate sustainability information disclosure, with a unified national standard being developed in China [1][2]. Group 1: Sustainable Disclosure Standards - The Ministry of Finance and nine other departments jointly issued the "Corporate Sustainability Disclosure Standards - Basic Standards (Trial)" in December last year, marking the beginning of a unified national sustainable disclosure standard system [2]. - The Ministry of Finance and the Ministry of Ecology and Environment released the "Corporate Sustainability Disclosure Standards No. 1 - Climate (Trial) (Draft for Comments)" in April 2025, indicating solid progress in the construction of the unified disclosure standards [2]. - The goal is to establish a national unified sustainable disclosure standard system by 2030, as stated by the Director of the Accounting Department of the Ministry of Finance, Lin Qiyun [2]. Group 2: International Standards and Cooperation - The International Sustainability Standards Board (ISSB) provides transparent information for investors, helping them identify risks and opportunities across time dimensions in rapidly changing markets [2]. - The ISSB Chairman, Emmanuel Faber, supports China's development of national unified sustainable disclosure standards based on ISSB guidelines, highlighting China's commitment to improving the quality and transparency of climate-related financial information [2]. - Currently, 36 countries and regions have adopted or are in the process of incorporating ISSB standards into their regulatory or legal frameworks, representing 60% of global GDP and greenhouse gas emissions, and 80% of the global capital market value excluding the United States [3]. Group 3: Implications for Chinese Enterprises - Unified and comparable sustainability information disclosure is seen as a cornerstone for the long-term stable development of global capital markets [3]. - The adoption of ISSB standards by Chinese stakeholders is expected to enhance the international competitiveness and financing capabilities of Chinese enterprises [3]. - This shift is anticipated to effectively guide capital towards supporting green and low-carbon sectors, providing financial support for achieving carbon neutrality goals [3].

Core Viewpoint - The emphasis on sustainable information disclosure is increasing globally, with multi-party collaboration being a key driver for the development of Environmental, Social, and Governance (ESG) practices [1][2]. Group 1: Policy and Regulatory Developments - The Ministry of Finance and the Ministry of Ecology and Environment jointly issued the "Corporate Sustainable Disclosure Standards No. 1 - Climate (Trial) (Draft for Comments)" in April, marking a significant step in aligning with China's "dual carbon" goals and participating in global climate governance [1]. - The People's Bank of China is revising the "Guidelines for Sustainable Information Disclosure by Financial Institutions" to enhance comparability with international standards and expand the scope of disclosures [2]. Group 2: Corporate Practices and Reporting - As of May 2025, 2,461 out of over 5,400 listed companies in China's A-share market disclosed ESG reports, achieving a disclosure rate of 45.7%, the highest on record [3]. - Among state-owned enterprises, 462 out of 470 listed companies have published ESG reports, resulting in a disclosure rate of 98.3% [3]. - Companies are increasingly adopting the "Four Pillars" framework proposed by the International Sustainability Standards Board (ISSB) for ESG reporting, focusing on governance, strategy, risk management, and metrics and targets [3]. Group 3: Industry Collaboration and Challenges - China National Railway Group is working on building a carbon-neutral ecosystem across its supply chain, emphasizing green evaluations and collaborative technology applications [4]. - Experts suggest that further collaboration and capacity building are needed to enhance sustainable information disclosure capabilities among companies and third-party service providers [4]. Group 4: International Standards and Investor Insights - The ISSB's standards provide transparency for investors, helping them identify risks and opportunities across time dimensions in rapidly changing markets [5].

Core Viewpoint - The 2025 Beijing International Sustainable Conference emphasized the importance of establishing a collaborative and inclusive sustainable information disclosure ecosystem, aligning with global standards to enhance transparency and investor decision-making [1][3]. Group 1: ISSB and Global Standards - The ISSB Chairman highlighted that ISSB standards provide transparent information for investors, aiding in the identification of value chain risks and opportunities over time [3]. - There is significant progress among jurisdictions representing a substantial share of global capital markets in aligning with ISSB standards, which will enhance the quality of financial information related to sustainability [3]. - The ISSB encourages China to develop a unified national sustainable disclosure standard based on ISSB guidelines, recognizing China's efforts to improve the quality and transparency of climate-related financial information [3][5]. Group 2: China's Commitment to Sustainable Disclosure - The Director of the Accounting Department of the Ministry of Finance stated that China is actively participating in the international governance of sustainable disclosure and aims to create a unified national standard that reflects international best practices while considering local conditions [5]. - The Ministry of Finance plans to establish a comprehensive sustainable disclosure standard system by 2030, emphasizing the need for collaboration among various stakeholders [5]. - The People's Bank of China is revising the "Guidelines for Sustainable Information Disclosure by Financial Institutions" to enhance comparability with international standards and improve environmental information disclosure [7]. Group 3: Contributions and Achievements - The President of the China Enterprise Reform and Development Research Association noted that China has made significant progress in ESG development, contributing to a unique framework and practical path for sustainable practices [9]. - China National Railway Group has recognized the value of ISSB standards in enhancing corporate transparency and investor confidence, actively implementing these standards [11]. - The conference featured discussions on the significance of adopting ISSB standards and building a local ecosystem for sustainable disclosure in Hong Kong [13].

Core Insights - The Ministry of Finance and the Ministry of Ecology and Environment have jointly released the "Corporate Sustainable Disclosure Guidelines No. 1 - Climate (Trial) (Draft for Comments)", marking a significant step towards a unified sustainable information disclosure system in China [1] - Nearly 2,500 A-share listed companies have disclosed ESG reports for the 2024 fiscal year, with a disclosure rate exceeding 45%, indicating a shift towards high-quality development [1] - Despite progress, challenges remain in data quality, coverage of small and medium-sized enterprises in the supply chain, and the overall effectiveness of information disclosure [1] Group 1: Sustainable Disclosure Framework - Sustainable information disclosure serves as a "responsibility tool" to address regulatory and public concerns while also acting as a "capability tool" to enhance supply chain resilience and risk governance [2] - The guidelines aim to integrate sustainability issues into corporate strategic planning and operational decision-making, promoting information sharing and risk management across supply chains [2] Group 2: Implementation Strategies - The strategy emphasizes a phased approach focusing on high-emission industries such as manufacturing, energy, and chemicals, with detailed disclosure guidelines and regulatory frameworks [3] - Companies are encouraged to build digital platforms for sustainable information sharing and risk monitoring, enhancing their ability to identify and respond to environmental and compliance risks [3] Group 3: Role of Leading Enterprises - Leading companies are urged to establish carbon accounting and sustainable performance auditing systems, encouraging suppliers to disclose key ESG performance indicators [4] - The creation of a "transparent supply chain" is promoted through collaborative efforts in carbon footprint tracking and green technology cooperation [4] Group 4: Support Mechanisms - Downstream companies are encouraged to utilize digital technologies to track market demands and environmental standards, improving responsiveness to green requirements [5] - Financial incentives such as tax reductions and subsidies are proposed to support green procurement and the transformation of supply chains, particularly for small and medium-sized enterprises [5]

Core Viewpoint - The establishment of a unified sustainable information disclosure system in China marks a new phase in promoting sustainable development across economic, social, and environmental dimensions, with a focus on enhancing the quality of ESG disclosures by state-owned enterprises and listed companies [1][2]. Sustainable Information Disclosure System - The Ministry of Finance and nine other ministries have developed the "Enterprise Sustainable Disclosure Standards - Basic Standards (Trial)" to create a nationwide unified standard for corporate sustainable information disclosure, emphasizing reliability, relevance, comparability, verifiability, understandability, and timeliness [1][2]. - The framework includes governance, strategy, risk and opportunity management, indicators, and targets, with a commitment to continuously improve the national sustainable disclosure standards [1][3]. Characteristics of the Disclosure System - The overall framework of the Basic Standards and the Compilation Guidelines is consistent, focusing on improving the quality and transparency of corporate sustainable information disclosures [3]. - The Basic Standards apply to all enterprises in China, while the Compilation Guidelines specifically target listed companies, providing systematic regulations and best practice recommendations [3][4]. Recommendations for Central Enterprises - Central enterprises should enhance the quality of their ESG disclosures by effectively integrating social responsibility reports and ESG reports, focusing on technology innovation and safety support [5][6]. - Continuous improvement of corporate governance is essential, emphasizing the protection of minority shareholders and the establishment of effective board structures [6]. - In the context of climate change, central enterprises must strengthen ESG risk and opportunity management, focusing on direct and indirect impacts on sustainability [7]. - Utilizing digital technology to build internal ESG data governance mechanisms is crucial for optimizing management processes and enhancing decision-making capabilities [8]. - Central enterprises should take a leading role in biodiversity protection, aligning with sustainable development goals and improving methodologies for biodiversity assessment [9].

Core Insights - The ESG disclosure rate in A-shares has reached a historical high of 45.72% as of April 30, marking a significant increase from 36.96% over the past three years [1][2] - The banking sector leads with a 100% ESG disclosure rate, followed by non-bank financial institutions at nearly 90% [1][2] - High-emission industries such as steel, coal, transportation, and oil & gas have also seen their disclosure rates exceed 60%, indicating a slight year-on-year increase [1][5] Industry Performance - The financial industry continues to dominate ESG disclosures, with the banking sector achieving a consistent 100% disclosure rate [2][5] - Non-bank financial institutions have a disclosure rate of 84.52%, reflecting strong compliance within the sector [2] - Other high-emission sectors are improving, with steel, coal, and public utilities all surpassing 60% in disclosure rates [5] Regulatory Developments - New guidelines and regulations have been introduced, including the "Self-Regulatory Guidelines for Listed Companies on Sustainable Development Reports" and the "Basic Standards for Corporate Sustainable Disclosure" [6][10] - As of April 30, 2024, 457 companies are required to disclose ESG reports, with a current compliance rate of 94.53%, up from 91.24% the previous year [11][13] - The transition from voluntary to mandatory ESG disclosures is being emphasized, with a focus on ensuring that companies meet regulatory requirements [10][11] Challenges and Opportunities - Despite the overall improvement, 25 companies have yet to disclose their ESG reports, highlighting the urgency for compliance as the mandatory disclosure deadline approaches [1][13] - The quality of ESG disclosures remains a concern, with issues related to completeness and effectiveness noted, as many reports still lack quantitative data and specific action plans [13][14] - Small and medium-sized enterprises (SMEs) face challenges in ESG compliance, but there are opportunities for them to gain competitive advantages through green certifications [15][16] Future Outlook - The rapid development of ESG policies in China reflects a commitment to aligning with international standards, with a focus on integrating ESG into corporate strategies [8][9] - The approach to ESG disclosures is expected to evolve, with a gradual shift towards more stringent requirements for larger companies, which will set a precedent for SMEs [9][17] - The emphasis on a phased implementation of ESG standards aims to reduce the burden on companies while enhancing their data management capabilities for future compliance [17][18]

Group 1 - The ISSB has officially released the International Financial Reporting Sustainability Disclosure Standards, marking a significant shift from voluntary to mandatory disclosure requirements for sustainability-related financial information [2] - The ISSB standards will take effect for annual periods beginning on January 1, 2024, but the specific impact on companies will depend on the adoption and enforcement timelines in different jurisdictions [2] - A consultation draft for amendments to IFRS S2 regarding climate-related disclosures was published on April 28, 2025, with a feedback period of 60 days ending on June 27, 2025 [2] Group 2 - The ISSB has identified implementation challenges faced by companies, particularly in disclosing greenhouse gas emissions under IFRS S2, and aims to revise the disclosure requirements to enhance operability without weakening the existing standards [3] - The revisions will focus on optimizing exemption clauses to create a more cost-effective disclosure mechanism while balancing investor information needs and compliance costs for companies [3] - The revisions will particularly impact financial sector companies and those bound by specific jurisdictional requirements related to greenhouse gas measurement methods [6] Group 3 - The amendments to IFRS S2 will include specific requirements for banks and insurance companies to classify counterparties and disclose related financing emissions [5] - Companies will have the autonomy to choose whether to apply the exemption provisions based on their operational circumstances, and this choice will not affect their compliance statements under ISSB standards [6] - The ISSB plans to collect and analyze stakeholder feedback on the consultation draft and aims to complete the revisions to IFRS S2 by the end of 2025 [6]