China ESG

China ESG Overview

China has formulated a 2030 carbon peak and 2060 carbon neutrality plan, and its investment in clean energy such as photovoltaics and wind power and the scale of financial instruments such as green bonds are at the forefront of the world.

China’s ESG development has attracted the attention of many international institutions. The Asia Investor Group on Climate Change has set up a China working group, and the ISSB has opened an office in Beijing. 

China is also cooperating with other jurisdictions on ESG policies. The Monetary Authority of Singapore and the People’s Bank of China have jointly established a green finance working group, and the European Union is also developing a common taxonomy with China.

China ESG Regulation

China’s ESG regulatory policies take into account both domestic ESG development and international sustainable development standards. The Ministry of Finance has released a draft of the Corporate Sustainability Disclosure Guidelines for soliciting opinions, and plans to establish mandatory disclosure requirements in stages over the next few years.

In addition to the People’s Bank of China and the Ministry of Finance, both the Shanghai Stock Exchange and the Shenzhen Stock Exchange have released draft opinions on the preparation of sustainable development reports, providing practical guidance for listed companies to write sustainable reports.