China’s First ESG Disclosure Guidance

Chinese enterprises face a pressing need to catch up as they compete in markets with rising demand for quality ESG data. Many globally recognized and most prevalent standards, such as the GRI and SASB, had been developed under a Western context. As more Chinese companies take part in ESG disclosures, the need for a ESG standard that is more compatible with China’s business and regulatory environment becomes apparent. That is why the China Enterprise Reform and Development Society (CERDS) initiated the project along with experts from China’s leading research institutions and corporations to create the Guidance for Enterprise ESG Disclosure (the Guidance). The Guidance is a landmark in China’s ESG development, was officially published on April 16, 2022, and will take effect on June 1, 2022. The Guidance listed a total of 118 metrics, spanning 35 tertiary indicators and 10 secondary indicators under the 3 primary indicators of environmental, social, and governance. Click the metrics table for a Seneca ESG summary of the Guidance and the Chinese image for a pdf of the original document.