The Shanghai Stock Exchange (SSE) has introduced two new supplementary guides—Guide No. 4 and Guide No. 13—to enhance the understanding and application of its ESG Guidelines No. 14.

Record-Breaking ESG Reporting: In 2024, 52% of SSE-listed companies published ESG reports, marking a 6% increase compared to the previous year, with 1,193 companies participating.

Focus on Climate Disclosure: The updated guidance includes new tools and sample disclosures to help companies address climate risks, carbon emissions, and sustainability governance.

Expanded ESG Framework
The SSE, under the China Securities Regulatory Commission (CSRC), has released Guide No. 4 for listed companies and Guide No. 13 for the STAR Market. These supplements strengthen the implementation of the earlier ESG Guidelines No. 14, offering clear examples and focused disclosure areas to improve ESG reporting.

Key Features of the Updated Framework Include:

• Sample Disclosures: Practical templates and disclosure frameworks to help companies address climate change and establish sustainability governance systems.
• Technical Insights: In-depth explanations of ESG standards, covering climate-related risks, financial impacts, and carbon emissions, guiding companies to align with best practices.
• Voluntary Adoption: While optional, the guidance encourages companies to use these templates to enhance the quality of their sustainability reports.

Achievements in ESG Reporting

• Increased ESG Participation: In 2024, over half of SSE-listed companies issued sustainability or social responsibility reports, showing a notable year-on-year increase.
• Global Recognition: By the end of 2024, 342 companies had received MSCI ESG ratings, with 8 earning an AAA rating, reflecting global excellence.
• Investment Milestones: The number of ESG-index-tracking products grew to 89, including 45 green ETFs, with assets under management totaling over 130 billion yuan.

Looking Ahead
The SSE plans to further develop ESG guidance based on market needs, gather best practices, and refine the adaptability and operability of its rules. These efforts aim to promote higher-quality ESG disclosures among listed companies and strengthen the global competitiveness of China’s sustainable finance sector.

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