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China's securities regulator moots mandatory ESG reporting of listed firms


The China Securities Regulatory Commission (CSRC) is considering mandatory environmental, social and governance (ESG) reporting as part of efforts to shift to a lower-carbon economy. Regulators are now formulating a framework for mandatory ESG-related disclosures for companies listed in China. The first step would be to design a standard that is recognized by the international community and applicable to the local market. China may introduce the requirements first on a “comply or explain” basis before transitioning to a full-scale compulsory framework. Chinese state-owned public enterprises are expected to take the lead on compliance. China is trying to catch up with global peers on reporting standards and meet a net zero target by 2060. CSRC vice chairman Fang Xinghai said that coming up with mandatory ESG reporting requirements was the next step.

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