China’s three major stock markets, the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE) have published new sustainability reporting guidelines for listed companies. These reporting requirements for companies covers 4 topics – governance, strategy, impact, risk and opportunity management, and indicators and goals. The listed topics indicate that the exchanges are adopting a “double materiality” approach to sustainability reporting, which includes reporting both on the risks and impact of sustainability issues on an enterprise, as well as on the enterprises’ impacts on environment and society.
These topics are included in the guidelines so that investors and stakeholders can fully understand the listed companies’ efforts to cope with and manage sustainable development.
Mandatory reporting requirements under the new guidelines will apply to larger companies, including those on the flagship Shenzhen 100, SSE 180 and Shanghai Science and Technology Innovation 50 index, as well as dual-listed companies with securities on both domestic and foreign markets. Overall, the mandatory requirements apply to more than 450 companies, representing around half of listed market value. The Beijing exchange, which houses primarily small and medium enterprises, is introducing the guidelines on a voluntary basis.
For those included in the mandatory requirements, reporting is set to begin in 2026, for the 2025 reporting period.
