The Shanghai Stock Exchange (SSE), operating under the auspices of the China Securities Regulatory Commission (CSRC), has introduced two critical guides aimed at enhancing the Environmental, Social, and Governance (ESG) reporting framework.
According to ESG News, guide No.4 targets general listed companies, while Guide No.13 focuses on those listed on the STAR Market. These guides build on the previously issued Guidelines No.14, now supplemented with practical examples and specific disclosure foci intended to elevate the quality of ESG reporting.
These new guides provide listed companies with practical templates and detailed frameworks to help them effectively address climate change issues and craft robust sustainability governance systems. Furthermore, they offer in-depth technical insights into ESG standards, which include managing climate-related risks, the financial impacts of ESG factors, and detailed accounting of carbon emissions scopes.
Although adopting these guidelines remains voluntary, the SSE actively encourages their use. The intent is clear: to assist companies in improving the quality and transparency of their sustainability reports, thereby fostering a stronger global standing in sustainability practices.
In terms of achievements, there has been noticeable progress in ESG reporting among SSE-listed companies. In 2024 alone, over half of these companies have published sustainability or social responsibility reports, demonstrating a substantial year-on-year increase. The global recognition of these efforts is evident as, by the end of 2024, 342 companies had secured MSCI ESG ratings, with eight achieving the highest rating of AAA. On the investment front, the number of products tracking ESG indices reached 89, with green ETFs comprising 45 of these, collectively managing over 130 billion yuan in assets.
Looking ahead, the SSE is committed to continuous improvement of its ESG guidelines based on evolving market needs. It plans to gather best practices, enhance the adaptability and operability of its rules, and drive high-quality ESG disclosures. These initiatives are designed to further the global competitiveness of China’s sustainable finance landscape.
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