Energy-Intensive Chinese Bond Issuers Lead on ESG Disclosures

The disclosure ratio of bond issuers in China’s eight most energy-intensive industries was higher than for other industries, said a white paper by the International Capital Market Association (ICMA) and the China Central Depository & Clearing (CCDC). The data from over 5,000 bond issuers showed the highest disclosure ratios were in the petrochemical (75%), building materials (55%), aviation (51.9%) and steel (46.7%) industries. The white paper also found that bond issuers with larger balance sheets had a higher disclosure ratio of ESG-related reports. More than half of bond issuers with assets over CNY 200 billion (US$29.5 billion) issued ESG-related reports, compared to about 15% for issuers with assets under CNY 50 billion (US$7.4 billion). The white paper also found that bond issuers overall are lagging on ESG disclosures, with just 16% of bond issuers disclosing ESG information in 2021 compared to 28% of listed companies. 

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