SZSE Strengthens ESG Reporting Framework to Drive Sustainable Growth for Listed Companies
On January 17, 2025, the Shenzhen Stock Exchange (SZSE), under the supervision of the China Securities Regulatory Commission (CSRC), unveiled the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report and Self-Regulatory Guidance No. 3 for Companies Listed on the ChiNext Market of Shenzhen Stock Exchange—Preparation of Sustainability Report. These guidelines, effective immediately, aim to elevate ESG disclosure standards while ensuring clarity and ease of implementation for listed companies.
What's New in SZSE's ESG Guidance?
The new guidance builds on the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) and introduces enhancements to help companies streamline their ESG reporting process. Key highlights include:
•Comprehensive Disclosure Framework:
The guidance emphasizes governance, strategy, risk and opportunity management, and indicators and targets as foundational components for ESG reporting. These provide companies with a structured approach to identifying and disclosing material sustainability topics.
•Focus on Climate Response:
A dedicated chapter addresses climate-related challenges, outlining methods for assessing materiality, conducting scenario analyses, calculating greenhouse gas emissions, and drafting transition plans. Detailed examples support companies in tackling this complex topic effectively.
•Voluntary, Not Mandatory:
Unlike mandatory reporting rules, the guidance provides flexibility. Companies are encouraged to leverage the examples and methodologies to enhance their ESG disclosures without adding compliance burdens.
Strong Market Engagement
During the public consultation phase, stakeholders provided valuable input, which SZSE incorporated into the final guidance. Notable improvements include clearer naming conventions for reports, expanded topic indexes, and detailed examples for emissions calculations. These refinements underscore SZSE's commitment to developing a user-friendly framework that aligns with market needs.
Growing Momentum in ESG Reporting
In 2024, over 1,000 SZSE-listed companies published sustainability or ESG reports, reflecting a record 35% disclosure rate. This marked improvement highlights the growing recognition of ESG's importance in corporate strategy and investor decision-making.
As SZSE continues to refine its ESG framework and provide practical tools for listed companies, its initiatives are setting a benchmark for sustainability practices across the region.
First, please LoginComment After ~