Recently, under the unified deployment of the China Securities Regulatory Commission, the three major stock exchanges in Shanghai, Shenzhen and Beijing respectively solicited opinions from the market on the sustainable development reporting guidelines for listed companies (hereinafter referred to as the "Guidelines"). Experts said that the exchange's issuance of sustainability reporting guidelines came into being and is an important measure for the capital market to implement new development concepts and promote high-quality development.

Guide listed companies to develop sustainably

　　The 2023 Central Financial Work Conference further emphasized the need to complete five major articles including green finance. Achieving "carbon peaking, carbon neutrality" and sustainable development goals is a broad and profound economic and social systemic change, which cannot be separated from more effective financial resource allocation and related institutional arrangements. Listed companies are representatives of outstanding enterprises in our country. The formulation of guidelines for standardizing the sustainable development information disclosure of listed companies is an important system construction to achieve the "double carbon" goal. It will help guide various elements to gather in green and sustainable fields and promote the sustainable development of the economy, society, and environment. It helps to enhance the mid- to long-term sustainable development capabilities of listed companies and improve the quality of listed companies.

　　In recent years, the three major stock exchanges in Shanghai, Shenzhen and Beijing have continued to guide listed companies to strengthen information disclosure related to sustainable development, and actively integrate green and sustainable elements into the reform of investment, financing and trading. Taking the Shanghai Stock Exchange as an example, as of the end of 2023, a total of 1,020 listed companies on the Shanghai Stock Exchange have disclosed 2022 social responsibility reports, ESG (environmental, social and corporate governance) reports or sustainable development reports, with a disclosure rate of 47%, and the number and proportion of disclosures Both hit new highs. SSE 50 and Science and Technology Innovation 50 index sample companies have basically achieved full coverage, and the report disclosure rate of SSE 180 index sample companies has exceeded 90%.

　　As of the end of 2023, the Shanghai Stock Exchange and China Securities Index have released a total of 138 ESG and other sustainable development indices, and the number of ESG and other green ETFs (traded open-end index funds) listed on the Shanghai Stock Exchange has reached 43, with a scale of more than 60 billion yuan.

Guidelines embody Chinese characteristics

　　In recent years, the world has paid increasing attention to sustainable development issues, including climate change. International capital markets are also developing sustainability disclosure standards.

　　From a capital market perspective, due to different "soils" such as national conditions and social development stages, my country's capital market must combine the general laws of international capital market development with China's national conditions and stage characteristics to build a modern capital market with Chinese characteristics. Therefore, the sustainable development information disclosure of listed companies must not only draw on the global standards framework, but also integrate Chinese standards into global standards, and ultimately form standards that can reflect both global trends and China's own characteristics. Experts said that the stock exchange drafted the "Guidelines" under the guidance of the China Securities Regulatory Commission, and the drafting ideas adhered to seeking truth from facts, adhered to systematic thinking, and reflected Chinese characteristics.

　　The first is to seek truth from facts. Fully consider the development stage and disclosure capabilities of listed companies, and achieve matching of costs and benefits by combining mandatory and voluntary disclosures, combining qualitative and quantitative disclosures, setting up transition periods and mitigation measures, etc.

　　Taking the Shanghai Stock Exchange as an example, companies that are continuously included in the SSE 180 and Science and Technology Innovation 50 index samples during the reporting period, as well as companies listed at home and abroad at the same time, should disclose the "Sustainability Report" and encourage other listed companies to voluntarily disclose. In terms of disclosure issues, disclosure requirements are set for different issues according to the levels of mandatory disclosure, explanation without disclosure, guided disclosure and encouraged disclosure.

　　The second is to adhere to systematic thinking. Help listed companies build a complete governance mechanism related to sustainable development, and drive high-quality information disclosure with better internal governance and specific actions.

　　The Shanghai Stock Exchange requires listed companies to analyze and disclose the topics to be disclosed around four core contents: governance, strategy, impact, risk and opportunity management, indicators and goals, so that investors and stakeholders can fully understand the listed companies’ efforts to cope with and manage sustainable development. Actions taken to develop relevant impacts, risks and opportunities. The relevant person in charge of the Shanghai Stock Exchange said that the "Guidelines" actively absorb useful experience and broad consensus at home and abroad to enrich and improve the information disclosure requirements for sustainable development. For example, strengthen disclosure requirements related to carbon emissions. In addition to disclosing governance and strategies related to climate change in accordance with the four core contents, listed companies should also further disclose climate adaptability, transformation plans, total greenhouse gas emissions, emission reduction measures, carbon emission-related opportunities and other matters.

　　The third is to reflect Chinese characteristics. Based on the actual situation of my country's capital market, a series of specific topics reflecting Chinese characteristics, such as rural revitalization and innovation-driven development, are set up to fully reflect my country's characteristics, advantages and priorities in the field of sustainable development.

　　Among the relevant requirements of the Shanghai Stock Exchange, the environmental information disclosure chapter sets important topics such as ecosystems and biodiversity, and circular economy. The social information disclosure chapter sets out many important topics such as rural revitalization, innovation-driven development, supply chain security, and equal treatment of small and medium-sized enterprises. The corporate governance information disclosure chapter sets out anti-corruption, anti-bribery and anti-unfair competition issues.

　　The Shenzhen Stock Exchange requires that during the reporting period, companies that are continuously included in the Shenzhen Stock Exchange 100 and GEM index samples, as well as companies listed at home and abroad at the same time, should disclose the "Sustainability Report" in accordance with the requirements of the "Guidelines". The Shenzhen Stock Exchange encourages other listed companies to voluntarily disclose . The Sustainability Report should be disclosed together with the annual report after being reviewed and approved by the board of directors. The reporting subject and period should be consistent with the annual report. In addition, listed companies should combine the characteristics of their industry and business operations to identify whether each issue has a greater impact on corporate value (i.e. financial importance) among the topics set in the "Guidelines", as well as the company's performance on the corresponding topics. Whether it will have a significant impact on the economy, society and environment (i.e. the importance of the impact), and explain the process of analyzing the importance of the issue. The "Guidelines" set out important social information issues such as rural revitalization, social contribution, innovation-driven, science and technology ethics, supply chain security, equal treatment of small and medium-sized enterprises, product and service safety and quality, data security and customer privacy protection, employees, etc. Listed companies should In accordance with the provisions of the Guidelines, the impact, risks and opportunities involved in relevant issues, the specific measures taken by the company, the specific results achieved, etc. are disclosed.

　　The Beijing Stock Exchange drafted the "Beijing Stock Exchange Guidelines for the Continuous Supervision of Listed Companies No. 11 - Sustainability Report (Trial) (Draft for Comments)" and publicly solicited opinions from the public. The Beijing Exchange encourages companies to make voluntary disclosures to reflect the characteristics of small and medium-sized enterprises. Taking into account the characteristics of the development stage of innovative small and medium-sized enterprises in the Beijing Stock Exchange, the rules do not impose mandatory disclosure requirements on sustainability reports and encourage companies to "act within their capabilities."

Provide transition and mitigation measures

　　The three major stock exchanges of Shanghai, Shenzhen and Beijing provide transitional arrangements and mitigation measures. On the Shanghai Stock Exchange, listed companies with mandatory disclosure of "Sustainability Reports" should release the 2025 "Sustainability Report" before April 30, 2026. Listed companies do not need to disclose year-on-year changes in relevant indicators in the first reporting period. For indicators that are difficult to disclose quantitatively, they can make qualitative disclosures and explain the reasons; in the 2025 and 2026 reporting periods, it will be difficult for the disclosure entity to quantitatively disclose sustainable development If relevant risks and opportunities have an impact on the current financial situation, only qualitative disclosure may be made.

　　The Shenzhen Stock Exchange stipulates that listed companies that should disclose a "Sustainable Development Report" should publish the 2025 "Sustainable Development Report" prepared in accordance with the provisions of the "Guidelines" before April 30, 2026. Listed companies do not need to disclose year-on-year changes in relevant indicators in the first reporting period. For indicators that are difficult to disclose quantitatively, qualitative disclosures can be made; in the 2025 and 2026 reporting periods, it will be difficult for the disclosure entity to quantitatively disclose risks and risks related to sustainable development. If the opportunity affects the current financial situation, only qualitative disclosure may be made.

　　Experts said that while the sustainability reporting guidelines for listed companies highlight Chinese characteristics, they believe that they will strike a balance and leave room for issues such as increased disclosure costs for listed companies in many places to a certain extent.

　　The reporter learned that during the public solicitation period, the stock exchange will listen to the opinions and suggestions of market participants through various methods, fully study, demonstrate and absorb them, and release and implement them to the market in a timely manner. It is foreseeable that the formulation of the sustainable development disclosure guidelines for listed companies in my country will not be accomplished overnight, but will also involve a process of gradual development and improvement through interaction with market and corporate responses.

　　Zhu Huichun

　　(Economic Daily)