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Under the direction of the China Securities Regulatory Commission, the Shanghai Stock Exchange recently published three new annexes to its guidance on sustainability reporting. These annexes address key areas such as pollutant emissions, energy use, and water consumption, and are available in both Chinese and English for the public.
Green development remains a core aspect of China’s modernization efforts. The recent session of the 20th CPC Central Committee emphasized speeding up the green transformation of economic and social progress and fostering a beautiful China. In line with this new development approach, the exchange has dedicated years to refining its sustainability disclosure standards, encouraging listed companies to embrace the philosophy that “clear waters and lush mountains are invaluable assets,” and improving the overall quality of their sustainability reporting and performance.
2026 is a significant year, marking the start of the 15th Five-Year Plan and the first year of mandatory ESG disclosures for companies listed on the exchange. The three annexes, along with previously issued guidance on climate change, provide a comprehensive framework for navigating the green transition. They cover crucial and complex topics including risk assessment, procedures, and methods for calculating common data points. By focusing on standardization and accounting for industry-specific factors, these annexes aim to assist companies in meeting their reporting obligations during this initial mandatory period, laying the foundation for sustainable growth and high-quality development over the course of the new five-year plan.
The exchange sought public input on draft versions of the annexes, receiving more than 80 responses. The feedback indicated widespread recognition of their guiding significance. In response, the exchange has thoughtfully integrated suggestions into the final versions. Moving forward, they plan to provide ongoing training sessions, gather additional feedback, and develop further guidance on emerging topics driven by market needs. The goal is to strengthen the overall quality of sustainability disclosures and support listed companies in achieving sustainable development.
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