In a recent development, the General Office of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) in China has disclosed the findings of its “Compilation Research” on ESG (Environmental, Social, and Governance) reporting for publicly listed companies controlled by central enterprises. This research initiative aims to establish a standardized framework for ESG information disclosure among these enterprises.

The research outcomes encompass two main components: the “Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central Enterprises” and the “Template Reference for ESG Reports of Listed Companies Controlled by Central Enterprises.” These outcomes provide comprehensive guidelines to ensure consistent reporting practices related to ESG matters within central enterprises in China.

SASAC’s Research Center initiated this project, with oversight from the Bureau of Property Right Management and the Bureau of Social Responsibility. The research efforts were led by the Research Center of SASAC and involved key participants such as China Energy Conservation and Environmental Protection Group (CECEP), China Beijing Green Exchange Co., Ltd, China International Capital Corporation Limited, and the International Institute of Green Finance (IIGF). Their collaborative efforts focused on developing a specialized report template and an indicator system for the Environmental (E), Social (S), and Governance (G) aspects of ESG.

The International Institute of Green Finance (IIGF) took the lead in developing the Governance (G) indicator system and contributed to the overall research transformation process. The article authored by Cheng Xinru, a research fellow at IIGF, not only introduces the context of the “Compilation Research” but also highlights its key components and assesses the potential implications following its implementation.