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Shanghai Exchange Seeks ESG Details From STAR Market Firms


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The Shanghai exchange said separate ESG, social responsibility and sustainability reports should also be published, if needed


Shanghai Stock Exchange
Chinese stocks were up on Wednesday, buoyed by lower Covid cases and news that the US might lift Trump-era tariffs. File photo: Reuters.

 

The Shanghai Stock Exchange (SSE) said on Thursday it has asked companies listed on the Nasdaq-style STAR Market to disclose environmental, social and governance (ESG) information in their annual reports.

SSE added that separate ESG, social responsibility and sustainability reports should also be published, if needed.

The bourse stressed that companies should disclose their plans on how to help China achieve its carbon-neutrality goals.

China has pledged to hit peak carbon emissions before 2030, and achieve carbon neutrality by 2060.

News of the tougher disclosure rules was first reported by state-owned Securities Times earlier in the day.

SSE is also urging STAR Market companies to disclose information around their core technologies, including progress of research and development, application prospects, and flag any major potential risks and uncertainties.

ESG investment in China is growing but a lack of data disclosure standards and regulatory frameworks still stands in the way, experts have said.

A recent white paper noted that the number of ESG-focused mutual funds in China soared in the first three quarters of 2021, with 48 new products launched.

As of September, total assets under management in ESG mutual funds reached 250 billion yuan ($39 billion), nearly double the size a year earlier.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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