Core Viewpoint - The Shanghai Stock Exchange (SSE) has completed the "Action Plan for Promoting the Improvement of ESG Ratings of Listed Companies in the Shanghai Market," aiming to enhance the ESG rating levels of listed companies through six major initiatives [1][2]. Group 1: ESG Rating Initiatives - The action plan includes six major initiatives to improve ESG ratings, starting with providing rating guidance, which involves developing guidelines for key rating indicators and enhancing disclosure examples [3]. - The second initiative focuses on promoting communication between listed companies and rating agencies, including training and industry sharing activities [3]. - The third initiative encourages improved information disclosure, urging companies to identify financially significant issues and enhance their analysis and reporting [3]. Group 2: Best Practices and Incentives - The action plan aims to form best practices by summarizing successful cases from leading ESG-rated companies and sharing experiences among industry benchmarks [4]. - Financial institutions are encouraged to develop more ESG-themed investment products, integrating ESG ratings into investment decisions [4]. - The plan also promotes the involvement of professional investors as active shareholders to enhance ESG management performance [4]. Group 3: Current ESG Rating Landscape - As of the end of 2024, 342 listed companies in the Shanghai market were included in the MSCI ESG rating, with 100 companies receiving upgrades in their ratings [7]. - The number of companies rated AAA-A has significantly increased to 52, indicating a strong upward trend in ESG ratings among Shanghai-listed companies [7]. - Despite the improvements, the number of companies at the global leading level remains relatively low, indicating room for further enhancement in ESG rating performance [7].