On January 30, under the guidance of China's securities regulator, the Shanghai, Shenzhen, and Beijing Stock Exchanges released revised "Guidelines for the Preparation of Listed Companies' Sustainability Reports." The update introduces three new specific guidelines covering "Pollutant Emissions," "Energy Use," and "Water Resource Utilization," aiming to enhance the sustainability awareness of listed companies and promote standardized disclosure practices.
It is understood that a sustainability regulatory framework has taken initial shape, consisting of mandatory baseline requirements outlined in the "Disclosure Guidelines for Sustainability Reporting by Listed Companies," supplemented by the newly revised guidelines, which serve as a reference and a source of best practices.
The mandatory disclosure guidelines, which took effect on May 1, 2024, apply to companies continuously included in major indices such as the SSE 180, STAR 50, SZSE 100, and ChiNext Index, as well as those dually listed domestically and overseas. These companies are required to disclose their first annual sustainability reports for the year 2025 by April 30, 2026, at the latest. The guidelines demonstrate strong compatibility with international standards while integrating China-specific practices, addressing 21 key topics across environmental, social, and governance dimensions.
On January 17, 2025, the exchanges initially issued the preparation guidelines, which included sections on "General Requirements and Disclosure Framework" and "Climate Change Response." The recent revision primarily focuses on environmental issues, adding the three new specific guides to strengthen listed companies' practical capabilities in environmental protection and resource utilization, thereby supporting the development of a low-carbon and sustainable market ecosystem.
According to an industry expert, the preparation guidelines reduce the difficulty for listed companies in implementing the mandatory disclosure rules and help rapidly improve the quality and capability of their ESG reporting. The guidelines provide detailed explanations of technical issues, along with specific processes, implementation steps, and scoring examples, serving as a practical "textbook" for companies to master the mandatory "syllabus."
Driven by ongoing policy guidance, a growing number of high-quality companies in the A-share market are consistently disclosing sustainability reports. Data shows that in 2025, nearly 1,900 listed companies published sustainability reports, representing a disclosure rate of approximately 35%, a significant increase of about 10 percentage points compared to the previous two years. These companies account for about 70% of the total market capitalization. Additionally, over 600 companies issued social responsibility reports.
Concurrently, ESG ratings have continued to improve, reflecting the enhanced quality development of listed companies. By the end of 2025, 34.3% of constituents in the MSCI China A Index saw an upgrade in their ESG ratings. The proportion of companies achieving top global ratings (AAA and AA levels) surged to 14.13% from 7.2% at the end of 2024, marking the largest annual increase in recent years. The number of top-rated companies grew significantly from just 2 at the end of the 13th Five-Year Plan period to 52. During the same period, the scale of sustainable index products under the CSI and SZSE indices reached approximately 125 billion yuan, more than tripling since the end of 2020, with ESG funds accounting for a growing share of both newly issued and existing financial products.
Recent research also indicates that international institutional investors are continuing to increase their investments in sustainable sectors, with a particular focus on Asian markets, including China.
The year 2026 marks the beginning of the 15th Five-Year Plan period and will also be the first mandatory reporting cycle for A-share companies' ESG disclosures. Industry experts view the three new application guides as comprehensively addressing key challenges such as risk assessment, workflow, and data calculation methodologies. These guides enhance standardization while maintaining industry inclusivity and practicality, helping listed companies build a solid foundation for sustainable development.
Prior to the official release, the three exchanges solicited public feedback on the new guidelines. The proposed additions were widely recognized for their practical guidance and core content. After careful review, the exchanges incorporated the main suggestions received. Moving forward, the exchanges will focus on providing market training, regulatory consultation, and implementation support, while continuing to gather feedback and develop additional topic-specific guidelines as needed to further assist listed companies in their sustainability disclosure efforts.