Guo Jun, Deputy Director of the Listing Department of the China Securities Regulatory Commission (CSRC), stated on September 7 at the China Sustainable Investment and Free Trade Port Construction Forum, that the CSRC is guiding the Shanghai and Shenzhen Stock Exchanges in formulating guidelines for the disclosure of sustainable development by listed companies.
In the rule-making process, considerations are not only given to the comprehensiveness and scientific nature of the guidelines but also the capabilities of listed companies, market institutions, and regulatory authorities. Given China's national conditions, a voluntary disclosure approach seems to be a prudent starting point.
This year has seen an accelerated trend in the development of sustainable disclosure standards. Internationally, the International Sustainability Standards Board (ISSB) officially released its first two standards in June. The International Organization of Securities Commissions (IOSCO) announced its endorsement of these two standards in July, and the European Commission also approved the initial 12 European Sustainable Reporting Standards (ESRS). Domestically, more than 1,700 listed companies have disclosed relevant sustainable development reports this year, setting a new record.