China’s Ministry of Finance has started soliciting opinions for a draft guideline that aims at unifying corporate sustainability disclosures. The ministry aims to establish a nationwide standard by 2030 amid the growing global focus on ESG issues that have made enhanced corporate sustainability disclosures imperative.
The ministry posted the draft guideline named “Corporate Sustainability Disclosure Standards — Basic Standards” on its website on 27th May. The guideline sets requirements for disclosure of corporate sustainability information applying to companies established in China required to disclose such information.
At present the disclosures by Chinese companies are mostly voluntary and lack uniform standards. The ministry said that the unified rules will help the companies engage better in global trade and investment activities, increase their international competitiveness, and support the country’s institutional opening up.
The guidelines will gradually be extended from listed companies to non-listed companies and from voluntary to mandatory disclosures.
China expects to introduce basic corporate sustainability disclosure standards and climate-related disclosure standards by 2027.
The draft guideline consists of six chapters and 33 articles, covering general provisions, disclosure objectives and principles, information quality requirements, disclosure elements, other disclosure requirements, and supplementary provisions. The deadline for soliciting opinions is set for June 24 of this year.