Listed companies should start to practice ESG concepts from three aspects

Mondo Culture Updated on 2024-01-31

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Original title: Today's Perspective: Listed companies should start to practice ESG concepts from three aspects.

Li Chunlian. Since the beginning of this year, ESG (Environmental, Social and Governance) has become one of the hot words in the capital market. How ESG development can become an important indicator to measure the "performance" of a listed company at the end of the period.

The first economic work conference held a few days ago clearly pointed out that it is necessary to actively and steadily promote carbon peak and carbon neutrality, and accelerate the construction of a green and low-carbon chain. Under the "dual carbon" goal, ESG sustainable development has become an important dimension for judging the development quality of listed companies. Looking ahead to 2024, how can listed companies continue to improve their ESG performance and further promote green and low-carbon development?

First of all, the quality and quantity of ESG information disclosure of listed companies need to be improved. High-quality ESG information disclosure can enhance the attractiveness of listed companies in the capital market. According to the 2022 Development Statistical Report on China's Listed Companies released by the China Association of Public Companies, as of mid-2023, more than 1,700 domestic listed companies have independently compiled and released ESG-related reports for 2022, accounting for 34%, a significant increase from the same period last year. However, from the perspective of the entire A-share listed companies, the enthusiasm of state-owned enterprises is high, and the number of ESG report disclosures needs to be improved. More importantly, the quality of ESG information disclosure is uneven, and it is necessary to further standardize information disclosure.

Second, listed companies should continue to increase ESG investment. Although many companies are deploying ESG, ESG value creation is not achieved overnight. This requires companies to take a long-term view of ESG investment, and cannot require immediate results, only by continuously and steadily increasing ESG investment, the company's efficiency will continue to improve. At the same time, the policy level is also advocating to strengthen ESG investment, and relevant policies are accelerating the implementation and gradual refinement. In the long run, increasing ESG investment is highly consistent with the requirements of high-quality development of listed companies, and will also help listed companies to be recognized by domestic and foreign investors and obtain more support from the capital market.

Third, listed companies should actively implement ESG concepts and accelerate the construction of ESG management systems. Listed companies should determine the value of ESG in the enterprise based on their own specific conditions and the industry in which they operate, establish ESG goals, and formulate relevant measures and strategies to ensure that ESG concepts can penetrate into the company's specific business links, rather than being superficial and mere formalities. At the same time, we will continue to show investors and employees the company's performance and achievements in ESG, enhance trust and recognition, and establish and improve the ESG system on this basis, which will help the company improve its management level and competitiveness, especially in the context of "carbon tariff", and can also reduce international barriers.

In the three years since the "dual carbon" goal was proposed, the demand for a comprehensive transformation of listed companies to green and low-carbon has become more and more urgent, and more and more listed companies have begun to integrate ESG into their operation and management. We have reason to believe that with the deepening of the "dual carbon" process, ESG will continue to promote the green and low-carbon development of listed companies, and will also become an inevitable choice for the high-quality development of listed companies.

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