As global attention to sustainable development continues to rise, the China Securities Regulatory Commission (CSRC) and major exchanges have actively responded by promoting information disclosure by listed companies in terms of sustainability. On April 12, 2024, the Shanghai Stock Exchange officially released the "Guidelines for Self-discipline Supervision of Listed Companies on the Shanghai Stock Exchange No. 14 - Sustainable Development Reporting (Trial)" (hereinafter referred to as the "Guidelines"), marking an important step for China's capital market in terms of sustainable development information disclosure.

The "Guidelines" require companies included in the SSE 180, STAR 50 Index, as well as companies listed both domestically and overseas, to disclose their "Sustainable Development Report" for the year 2025 no later than 2026. This arrangement reflects both strict requirements for key companies and provides preparation time for other companies. For listed companies not mandatorily required to disclose, regulatory authorities adopt an encouraging attitude, advocating voluntary disclosure to promote the overall market's attention to sustainable development information disclosure.

The "Guidelines" outline 21 specific topics such as climate change, rural revitalization, and innovation-driven development, requiring listed companies to provide detailed disclosures on topics of financial significance based on their own circumstances.

Four Core Contents

Governance

Involves how the company manages its sustainability affairs, including but not limited to corporate governance structure, decision-making processes, and supervision mechanisms.

Emphasizes the importance of senior management's commitment to sustainability and how sustainability principles are integrated into the company's strategies and daily operations.

Strategy

Describes how the company integrates sustainability concepts into its business strategies and how this integration supports the company's long-term goals and vision.

Includes analysis of sustainability trends, the company's strategic choices, and how these choices affect the company's development direction and competitiveness.

Impact, Risk, and Opportunity Management

Analyzes the potential impact of sustainability-related issues on the company's operations, including risks and opportunities arising from environmental and social factors.

Discloses how the company identifies, evaluates, manages, and reports on these impacts, risks, and opportunities, as well as measures taken to mitigate risks and seize opportunities.

Indicators and Targets

Provides specific performance indicators for sustainable development, which quantify the company's performance in sustainability.

Sets clear goals and timetables, demonstrating how the company plans to improve its sustainable development performance and track and report progress.

These four core contents constitute the main body of the sustainability report for listed companies, aimed at helping companies communicate their performance and efforts in sustainable development to investors and other stakeholders in a systematic and comprehensive manner. Through this structured approach, listed companies can better demonstrate how they achieve coordinated development in the economic, environmental, and social aspects, as well as create long-term value for all stakeholders.

Impacts

The release and implementation of the "Guidelines" have profound implications for China's capital market and listed companies. Through standardized sustainability reporting, investors and regulatory authorities can gain a clearer understanding of listed companies' performance in terms of economic, environmental, and social responsibilities.

High-quality sustainability information disclosure helps enhance investors' confidence in the long-term value of listed companies.

The "Guidelines" encourage listed companies to better fulfill their social responsibilities and promote sustainable development of society and the economy. They also facilitate effective communication between Chinese listed companies and international investors, enhancing their international competitiveness.