China proposes mandatory Sustainability reporting for listed companies
15/03/2024
China is proposing mandatory sustainability reporting for listed companies, potentially impacting Australian subsidiaries of Chinese firms and Australian investors.
Draft guidelines unveiled in February mandate sustainability reporting for companies listed on the Shanghai, Shenzhen, and Beijing Stock Exchanges. This move aligns with global trends as jurisdictions worldwide increasingly require sustainability and climate related reporting.
Guideline areas
The guidelines will encompass areas such as:
- Emissions
- Climate impact
- Governance
- Strategy
- Risk management
What does this mean for Australian Businesses?
- Australian businesses with connections to Chinese entities must prepare for heightened scrutiny regarding carbon emissions and adherence to international reporting standards.
- Chinese entities listed on the mentioned exchanges will be expected to disclose comprehensive sustainability reports, drawing on both domestic and international standards.
Globally, many jurisdictions have now released draft or final standards, draft or final legislation and rollout plans for companies to implement mandatory sustainability reporting. In Australia some entities are already including mandatory climate disclosures under the NGER legislation, and many more large companies in Australia are expected to need to comply with sustainability disclosure standards in the coming years. China mandating sustainability disclosures is in-line with what is happening in other jurisdictions and evidence of the current global trend. There is also significant focus in China on reducing emissions.
How can SW help?
In response to this shift, SW offers support to companies through gap analyses and readiness assessments for mandatory sustainability reporting. SW Partners, Rene Muller, John Dorazio, Tom Mullarkey, and Associate Director Jimmy Cao are available to provide guidance and assistance throughout this transition.
Reach out to your SW contacts or the key contacts here for a conversation.
