Thursday
October 13
2022

China Moves to Standardize Fragmented ESG Reporting Landscape

China’s recently implemented guidance for enterprise disclosure standards on environmental, social, and governance (ESG) initiatives aims to establish a framework that officials say is more conducive to assessing risk and performance indicators for investors steeped in the domestic market. The guidance draws on international developments in ESG priorities, but leans heavily towards priorities established by the Chinese government, such as the drive for common prosperity and social stability.

While a growing body of regulatory guidance for ESG reporting has been emerging in China, developments have been fragmented and some of the guidelines remain voluntary, leading to skepticism over uniform adoption. At the same time, ESG-related enforcement remains a priority for regulators.

Photo courtesy of faungg’s photos.

Source: Thomson Reuters (link opens in a new window)

Categories
Investing
Tags
environmental impact, ESG investing, governance, social impact, sustainability