The Shanghai Stock Exchange (SSE) has announced its Three-Year Action Plan on Improving ESG Information Disclosure Quality of Listed Companies (2024-2026), aiming to elevate environmental, social, and governance (ESG) reporting standards among its listed companies. This ambitious initiative, designed to promote transparency, accountability, and investor confidence, is a strategic move to position China's capital market as a global leader in green finance.

A Growing Commitment to ESG in China's Markets

With China's status as a global economic leader comes a responsibility to drive sustainable growth. SSE-listed companies have made significant strides in ESG, with over 1,896 companies—more than 80% of SSE listings—integrating environmental initiatives, including emission reduction and circular economy practices. In 2023 alone, these companies cut over 800 million tons of CO₂ emissions and invested over 200 billion yuan in environmental protection.

In line with China's rural revitalization goals, SSE-listed companies have also invested over 100 billion yuan to boost rural economies, providing financial support, agricultural loans, and employment assistance to help bridge socioeconomic gaps. These efforts underscore SSE's holistic approach to ESG, extending beyond environmental impact to social equity and community development.

Four Pillars of the SSE's Action Plan

The Action Plan's focus includes four key initiatives:

Enhancing ESG Reporting Capabilities: The SSE aims to strengthen ESG reporting with new digital tools, training, and a “toolbox” of resources to help companies improve report quality, spotlighting best practices in the market.

Driving Green Finance: By expanding ESG-themed financial products and integrating ESG scores into financing, the SSE encourages capital to support high-performing companies, linking investment with sustainable business practices.

Promoting Global ESG Dialogue: Through international platforms like the World Federation of Exchanges (WFE), SSE shares the ESG achievements of Chinese companies, promoting a shared vision for sustainable growth tailored to China's economic model.

Digitalizing ESG Data: Leveraging big data and AI, the SSE plans to create an ESG database for climate and sustainability metrics, offering comprehensive information for investors and supporting advanced analytics.

Rising ESG Standards Among SSE Companies

SSE-listed companies are increasingly transparent in their ESG commitments. In 2023, 1,187 companies published ESG or sustainability reports, achieving a disclosure rate of over 52%, a record high. As ESG continues to drive investor interest, assets in domestic ESG funds reached 260 billion yuan across 273 products by mid-2024, reflecting strong demand for responsible investment.

Setting a New Standard for ESG Reporting

The SSE's draft guidelines, including Guide No.4 and Guide No.13, outline structured reporting processes for listed companies, helping them disclose material ESG issues in a clear, actionable format. Public feedback is actively encouraged to refine these standards, creating a cohesive reporting framework across sectors.

A Vision for Sustainable Growth

The SSE's Three-Year Action Plan aims to catalyze a transformation in China's capital markets, promoting transparency and resilience in ESG practices. Through robust disclosures, green finance innovation, and global engagement, the Shanghai Stock Exchange is setting a new benchmark for sustainable finance, aligning China's growth with a commitment to long-term, responsible development.

Reference：https://english.sse.com.cn/news//newsrelease/c/c_20241106_10763793.shtml