Chinese regulators are reportedly planning to make ESG disclosures mandatory for all firms listed on domestic markets. The regulators may initially introduce the new ESG disclosure requirements on a ‘comply or explain’ basis before transitioning to a fully mandatory framework. The new framework is being designed so that it is both recognised by the international community and applicable to the local market. Voluntary ESG disclosure guidelines for local enterprises have already been developed and implemented since 1 June last year. Last May, the China Securities Regulatory Commission proposed revised disclosure rules for listed companies, including requirements to disclose penalties arising from environmental issues. The rules, which have yet to be finalised, had also provided a voluntary framework for companies to disclose the measures they take to reduce carbon emissions, alleviate poverty, and revitalise rural areas. Chinese state-owned public enterprises are expected to be the first to have to comply, by as early as the end of the year.
Regulators may initially introduce the new #ESG disclosure requirements on a “comply or explain” basis before transitioning to a fully mandatory framework.https://t.co/M9aLNcoRxQ
— Regulation Asia (@RegulationAsia) February 23, 2023
