During a recent forum at the “2024 ESG Global Leaders Conference” held in Shanghai, Yan Bojin, Chief Risk Officer and Director of the Issuance Department of the China Securities Regulatory Commission (CSRC), emphasized the importance of environmental, social, and governance (ESG) principles in enhancing the performance of publicly listed companies. “China’s capital markets have always placed significant importance on guiding listed companies to improve their performance in these areas, supporting both the enterprises and the sustainable development of the economy and society,” Yan stated.
He elaborated that the CSRC views the disclosure of sustainable development information by listed companies as a fundamental aspect of promoting sustainability. The commission has continuously refined relevant regulations and guidelines. Following a period of strengthening the disclosure of environmental, social, and governance information, the CSRC has successfully guided the Shanghai, Shenzhen, and Beijing stock exchanges to issue the “Guidelines for Environmental and Social Responsibility for Listed Companies,” which took effect on May 1 of this year. “These guidelines represent an upgrade and integration of previous requirements for sustainable information disclosure, marking the first systematic and mandatory framework for ESG reporting by listed companies,” Yan noted.
Xi Guohua, Chairman of CITIC Group, commented on the intersection of ESG with China’s modernization efforts. “Integrating ESG into business models and management systems aims to maximize comprehensive value, closely aligning with the fundamental requirements of Chinese-style modernization and serving as a significant practice of the new development concepts,” he said. He urged Chinese enterprises, especially publicly listed companies, to deepen their research, actively participate in international standard setting, and enhance the influence of China’s ESG framework. “CITIC Group has woven ESG principles into our corporate strategy, management, and risk control, striving to be a pioneer and creator of ESG value. Since our establishment 45 years ago, we have prioritized stakeholder rights protection and ESG system development, embedding innovation, sustainability, openness, and responsibility into our growth, making ESG an integral part of CITIC’s soft power,” Xi added.
Xu Chongmiao, Chief Compliance Officer at China Life Insurance Company, expressed that ESG represents a developmental direction for financial enterprises, aligning the growth of individual companies with the broader progression of society. “High-quality development is the primary task in building a modern socialist nation and is essential for companies to adapt to the new economic normal,” Xu explained. He emphasized that this concept requires integrating new development principles across all economic and social development processes, embodying innovation, coordination, sustainability, openness, and shared benefits.
Li Wen, Chairman of China Universal Asset Management, highlighted that fostering ESG in China is crucial for advancing further reforms, promoting sustainable economic and social development, and enhancing corporate governance in the capital markets. “Currently, ESG responsibility investment in China is gaining strong momentum, characterized by three key trends: ongoing regulatory advancement, accelerated corporate ESG performance, and proactive engagement from investment institutions with increasingly diverse financial products,” Li mentioned.
Huang Hongri, Deputy Governor of China Minsheng Bank, stressed the pivotal role banks play in the financial economy, especially in facilitating green and low-carbon transitions while driving high-quality economic and social development. “As an important banking institution in the national system, Minsheng Bank actively supports national strategies, embedding ESG principles as a critical tool for our sustained and stable advancement, continually integrating ESG management across all aspects of our operations,” Huang concluded.
