Let high quality enterprises show the value of investment! The Shanghai and Shenzhen Beijing Stock E

Mondo Finance Updated on 2024-02-09

In this era, the capital market is not only the intersection of finance, but also the forefront of social responsibility. Recently, the three major exchanges in Shanghai, Shenzhen and North China announced a major move in unison: the launch of a public consultation on the Sustainability Reporting Guidelines. This action is not only a new requirement for listed companies, but also a bold prediction for the future.

By 2025, all listed companies will show us how they are leading the way in the race for sustainability. The Guidelines not only grasp the international consensus, but also give this consensus the wisdom and characteristics of China. Its emergence is a signal from the times: marching towards a green and sustainable future is no longer a multiple-choice question, but a must-answer question.

Those companies that are well versed in the way of sustainable development will stand on the cusp of the "Guidelines", their stories will attract more attention, and their value will be re-evaluated by the market at a new height. And this is where the "Guidelines" shine the most: it not only guides the flow of capital, but also leads the change of values.

The core of the Guidelines lies in its systematic thinking and deep understanding of Chinese characteristics. It provides a clear roadmap for listed companies through four core components – governance, strategy, impact, risk and opportunity management, and analysis and disclosure of metrics and targets. And this map points to a more just, green, and sustainable future.

The voices of experts are especially important at this moment. They believe that the release of the Guidelines is timely and perfectly suited to China's national conditions and future development needs. Through this framework, listed companies can not only improve their own sustainable development capabilities, but also contribute to the realization of carbon peak and carbon neutrality.

Specifically, the topics raised in the Guidelines cover rural revitalization, innovation-driven, science and technology ethics and other aspects, which are all hot spots and priorities in China's current social and economic development. Through such disclosure requirements, listed companies will not only contribute to their social responsibilities, but also be more proactive in demonstrating their social value.

In this era of global sustainable development, the issuance of the Guidelines is undoubtedly a clear stream, which not only points out the direction for Chinese listed companies, but also contributes Chinese wisdom to the sustainable development of the world. In the future, with the continuous enrichment and improvement of this rule system, we have reason to believe that a high-quality green and sustainable financial market ecology will gradually take shape, injecting new impetus into the sustainable development of the whole society.

The indicators are lenient and severe, and the content standards are moderate

In the wave of green transformation, the Sustainability Reporting Guidelines (the "Guidelines") are like a guiding light, pointing out a clear path for listed companies to achieve sustainable development. This guideline not only conforms to international standards, but also takes into account Chinese characteristics, achieving a balance, that is, while maintaining the rigor of the index requirements, it also takes into account the practical operation capabilities and the diversity of the actual situation of enterprises.

The focus of the Guidelines in dealing with climate information disclosure reflects a deep understanding of the actual situation of enterprises. In addition to basic climate-related governance and strategies, companies are also required to disclose more specific actions such as adaptation and transition plans, which not only push companies to think deeply about their relationship with climate change, but also prompt them to take practical actions to reduce greenhouse gas emissions and improve their ability to adapt to climate change.

Director Dong Dengxin's words revealed one of the highlights of the Guidelines: while maintaining the necessary strictness, appropriate adjustments have been made to the requirements that are difficult to implement or more controversial, making the Guidelines more operable. This strategy of blending leniency and severity not only makes the Guidelines closer to the actual situation of enterprises, but also easier for enterprises to accept and implement.

In terms of environmental protection and social responsibility, the Guidelines also set out comprehensive and specific disclosure requirements. From pollutant discharge to ecological protection, from rural revitalization to social contribution, the coverage of these contents not only shows an all-round concern for the environment and society, but also reflects the depth and breadth of sustainable development. Such disclosure requirements will help companies to value their environmental and social contributions while pursuing economic benefits.

Vice President Tian Xuan's views further emphasized the practicality and inclusiveness of the Guidelines. By requiring companies to combine quantitative and qualitative analysis, it can not only provide investors and other stakeholders with a more comprehensive and in-depth understanding of their sustainable development practices, but also enable enterprises to better integrate into the global trend of green development and improve their competitiveness in the international market.

Based on China's national conditions, we will promote it step by step

By setting different disclosure requirements for different types of listed companies, such as making the SSE 180, STAR 50 Index sample companies and companies listed at home and abroad at the same time as mandatory disclosure targets, while encouraging disclosure for other listed companies, this differentiated strategy not only ensures the effectiveness of information disclosure, but also avoids unnecessary burden on enterprises. Especially for those SMEs at different stages of development, especially innovative SMEs, this strategy provides them with greater flexibility and room to grow.

Yin Gefei's analysis pointed out that the mandatory disclosure of listed companies accounted for 51% of the market capitalization, indicating that the implementation of the Guidelines has a far-reaching and extensive impact on the market. The high disclosure rate of social responsibility reports, ESG reports or sustainability reports disclosed by more than 1,000 listed companies on the Shanghai Stock Exchange is a testament to the positive response and significant progress of China's listed companies in terms of sustainable development. This not only reflects the increased awareness of corporate social responsibility, but also demonstrates the positive adaptation and strong support of the capital market to the trend of sustainable development.

Tian Lihui emphasized that the differentiated implementation steps do provide more choice and flexibility for various stakeholders, and avoid the need for companies to report in a formal manner just to meet disclosure requirements. This approach not only helps to improve the quality and usefulness of the report, but also motivates the company to review and improve its own sustainability capabilities from within.

The transitional arrangements and mitigation measures provided by the Guidelines, such as allowing listed companies not to disclose the year-on-year changes in relevant indicators during the first reporting period, and qualitative disclosure and explanation of the reasons for indicators that are difficult to disclose quantitatively, are all full consideration and understanding of the practical difficulties of enterprises, ensuring that the implementation of the Guidelines is not only in line with the long-term goal of sustainable development, but will not cause excessive short-term pressure on enterprises.

Looking forward to the future, the relevant departments will continue to improve the sustainable development rule system, enrich the product system, and optimize the service system, which will further promote the green transformation of the capital market and lay a solid foundation for achieving the strategic goal of green and sustainable development. The successful implementation of the Guidelines will be an important milestone in the sustainable development of China's capital market and society as a whole, and mark the further consolidation and enhancement of China's leading position in the field of global green development.

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