China gets new ESG and other disclosure requirements
Following a recent consultation, the China Securities Regulatory Commission (CSRC) has issued additional reporting requirements for publicly listed companies, including enhanced environmental, social and governance (ESG) disclosures. Other rules introduce a wide range of requirements relating to company activities and governance.
The new rules add a new ESG chapter to financial reports, with mandatory disclosures of pollutant emissions, as well as procedures for preventing pollution of air, water, and soil, managing waste, and reporting environmental incidents, and any administrative penalties arising from environmental issues. While these do not extend to climate impacts, companies are also encouraged to voluntarily report carbon emissions and measures to reduce them and work towards carbon neutrality, as well as poverty alleviation and rural regeneration activities and impacts on biodiversity. The CSRC promises to work closely with international organisations in the development of global sustainability reporting standards.