Bi Xiaoying, Inspector of the China Securities Regulatory Commission: The willingness and quality of information disclosure on sustainable development of listed companies continue to increase

On July 21, Bi Xiaoying, a first-level inspector of the Listing Department of the China Securities Regulatory Commission, introduced at the National Carbon Market Conference 2024 that the willingness and quality of listed companies 'sustainable development information disclosure have been continuously improved. As of the end of April this year, more than 2000 companies have disclosed 2023 The number of companies has reached a new high in sustainability reports or social responsibility reports.

Listing Department of China Securities Regulatory Commission

First-level Inspector Bi Xiaoying

Bi Xiaoying introduced that since 2017, the China Securities Regulatory Commission has gradually improved environmental information disclosure requirements, first requiring listed companies that are key pollutant discharge units to disclose main environmental information; in 2018, the "Guidelines for the Governance of Listed Companies" were revised to require listed companies to disclose environmental information and fulfill their social responsibilities. In 2021, the disclosure rules for regular reports of listed companies will be revised to encourage listed companies to proactively disclose carbon emission reduction measures and effects. This year, the China Securities Regulatory Commission guided the three major exchanges of the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange to officially issue the "Guidelines for Sustainable Development Reporting of Listed Companies"(hereinafter referred to as the "Guidelines"), requiring them to continue to be included in the Shanghai Stock Exchange 180, Science and Technology Innovation 50 during the reporting period, sample companies of the Shenzhen Stock Exchange 100, GEM Index, and more than 450 companies listed at home and abroad will begin to disclose sustainable development reports for the first time before April 30, 2026 at the latest. Although the number of these companies accounts for less than 10% of the number of companies in the entire market, their market value exceeds 50% of the entire market, which can meet the needs of most domestic and foreign investors.

Bi Xiaoying introduced that the "Guidelines" combine the practical capabilities of listed companies and will disclose key aspects of responding to climate changes, require listed companies to disclose greenhouse gas Scope 1 and Scope 2 emissions, carbon emission reduction measures and effects, and encourage disclosure of Scope 3 emissions. Companies are required to disclose the performance and payment of participation in carbon emission trading, the national voluntary greenhouse gas emission reduction projects and voluntary emission reduction registration and trading status. This is the first mandatory system in the capital market to systematically regulate carbon information disclosure and will improve the reliability of carbon information disclosure. At the same time, the "Guidelines" maintain effective connection with various international standards and are basically consistent with international standards in terms of disclosure frameworks, disclosure elements, and core disclosure requirements. When dealing with climate change issues, they not only require the disclosure of various indicators, but also require companies to disclose in accordance with the four-element framework of governance, strategy, impact risk and opportunity management, and indicators and goals, promoting listed companies to pay attention to governance and strategy and focus on specific actions. Listed companies are required to disclose well and do well.

Bi Xiaoying pointed out that under the continuous guidance of policies, the willingness and quality of disclosure of sustainable development information by listed companies are constantly improving. The number of disclosures has increased by about 20% annually in the past three years. About 3000 companies have disclosed measures and effects taken to reduce carbon emissions, accounting for nearly 60% of all listed companies. This disclosure ratio is at the leading level in major capital markets around the world. In particular, nearly 1000 listed companies disclosed carbon emissions to varying degrees, with a total market value of 44.2 trillion yuan, accounting for 60.3% of the total market. In the past three years, the number of companies disclosed has increased by more than 50% annually. Among them, 840 companies have refined their carbon emissions in Scope 1 and Scope 2, and the pace of quantitative disclosure has gradually accelerated. At the same time, more than 40% of the companies that have issued reports related to sustainable development have established corresponding governance structures and established institutional systems.

Bi Xiaoying said that the China Securities Regulatory Commission will continue to disclose sustainable development information of listed companies, guide the three Shanghai, Shenzhen and North Exchanges to further strengthen practical guidance and training services, and further study expanding the scope of compulsory disclosure after the mandatory disclosure requirements are fully implemented in 2026., further improve the institutional system for information disclosure on the sustainable development of listed companies.