Core Viewpoint - The mandatory disclosure of sustainable development reports for listed companies in China is approaching, with significant changes in regulatory requirements and practices expected by 2026 [1][2]. Group 1: Regulatory Changes - The revised "Management Measures for Information Disclosure of Listed Companies" came into effect on July 1, 2023, mandating the publication of sustainable development reports by listed companies [2]. - The Shanghai and Shenzhen Stock Exchanges will implement the "Guidelines for Sustainable Development Reports of Listed Companies" in 2024, requiring companies to disclose their 2025 reports by 2026 [2]. Group 2: Current Practices and Trends - Companies are enhancing their sustainable development report practices by focusing on core performance indicators and aligning with international standards [1][3]. - There is a trend towards separating sustainable development reports from social responsibility reports to improve clarity and focus [3][4]. Group 3: Challenges in Data Disclosure - The disclosure of quantitative data remains a significant challenge, particularly in areas related to climate and supply chain management [5][6]. - As of September 2023, only 37.80% of listed companies disclosed quantitative performance related to greenhouse gas emissions, indicating a gap in data transparency [5]. Group 4: Importance of Quantitative Data - Quantitative data is crucial for linking ESG performance to financial outcomes, influencing investment decisions and company valuations [5][6]. - Companies are encouraged to develop comprehensive indicator systems for effective data collection and management, which is currently hindered by fragmented processes across departments [6][7]. Group 5: Recommendations for Improvement - Suggestions include enhancing policy guidance, promoting industry leaders to set examples, and developing third-party platforms for technical support [9]. - Establishing a standardized framework for information disclosure that aligns with international rules is essential to reduce compliance costs for companies [9].

Core Viewpoint - The mandatory disclosure of sustainable development reports for listed companies in China is approaching, with many companies already preparing their 2025 reports, marking a significant shift from passive compliance to proactive enhancement of ESG information disclosure [1][2]. Group 1: Regulatory Changes - The revised "Management Measures for Information Disclosure of Listed Companies" came into effect on July 1, 2023, mandating companies to publish sustainable development reports as per exchange regulations, elevating ESG disclosure from voluntary to regulatory compliance [2]. - The Shanghai, Shenzhen, and Beijing Stock Exchanges will implement the "Guidelines for Sustainable Development Reports of Listed Companies" in 2024, requiring companies to disclose their 2025 reports by 2026 [2]. Group 2: Reporting Practices - Companies are focusing on core performance indicators to enhance readability and are separating sustainable development reports from social responsibility reports to strengthen thematic clarity [1][3]. - The emphasis on supply chain management and sustainability is increasing, with companies aiming to meet both domestic and international disclosure requirements [3]. Group 3: Challenges in Disclosure - The transition to quantitative data disclosure is challenging, with companies facing difficulties in data collection, talent shortages, and insufficient tools [1][4]. - A significant gap exists in the quantitative disclosure of climate-related data, with only 37.80% of companies actively reporting their greenhouse gas emissions performance [5][6]. Group 4: Industry Insights - The demand for ESG quantitative data is rising, with 102 fund companies issuing 1003 ESG public fund products by September 2023, reflecting an 11.94% increase from the previous year [6]. - Companies are encouraged to develop a comprehensive indicator system for quantitative data, which includes target setting, progress monitoring, and data collection [6][7]. Group 5: Recommendations for Improvement - Suggestions for enhancing ESG disclosure include strengthening policy guidance, promoting industry leaders as role models, and developing third-party platforms for technical support [9]. - Establishing a standardized system for ESG disclosure that aligns with international rules is essential to reduce compliance costs and improve efficiency [9].