Core Points - The Ministry of Finance has released a draft for the "Corporate Sustainable Disclosure Standard No. 1 - Climate (Trial) (Draft for Comments)", which is expected to become China's first specific standard for corporate climate information disclosure [1][2] - The draft is a detailed extension of the "Basic Standard" released in November 2022, establishing a comprehensive disclosure framework covering governance, strategy, risk and opportunity management, indicators, and targets [1][2] - The framework of the draft aligns with the TCFD's four pillars (governance, strategy, risk and opportunity management, indicators and targets) and is closely related to IFRS S2 in terms of core concepts and focus areas [3] Summary of the Draft - The draft consists of six chapters with a total of 47 provisions, including "General Principles," "Governance," "Strategy," "Risk and Opportunity Management," "Indicators and Targets," and "Appendices" [2] - The draft follows four main principles: based on the Basic Standard, alignment with international standards, separation of standard formulation and implementation, and consideration of industry application needs [2] - The fifth chapter specifies general indicators for climate-related industries, industry-specific indicators, climate-related targets, and greenhouse gas emission accounting bases [3] Comparison with Existing Guidelines - The draft and the recently released "Guidelines for Sustainable Development Reports" by the three major stock exchanges share a similar core framework, both adopting TCFD's four pillars [5][6] - Differences include the draft's requirement for Scope 3 emissions disclosure, which categorizes 15 types of activities and mandates financial institutions to disclose financing emissions breakdown, while the guidelines only encourage conditional disclosure [6] - The draft requires companies to conduct climate scenario analysis based on the Paris Agreement and assess strategic resilience, while the guidelines merely encourage conditional adoption without specific methods [6] Implementation Strategy - The draft considers the current disclosure capabilities and development stages of Chinese enterprises, allowing for a flexible implementation strategy that does not impose immediate high-difficulty disclosure requirements [7] - This approach aims to prevent excessive short-term pressure on companies, ensuring a smooth implementation of the standards while allowing room for long-term development and capability enhancement [7]