The report delivered at the 20^th National Congress of the CPC noted that respecting, adapting to, and protecting nature is essential for building China into a modern socialist country in all respects. To thoroughly carry out the new development philosophy and accelerate the green transition of listed companies in terms of the growth mode, SZSE recently issued the White Paper on Environmental Information Disclosure by SZSE-Listed Companies (the “White Paper”).

Built on China’s environmental protection policies and the environmental information disclosure system for SZSE-listed companies, the White Paper shares excellent cases of environmental information disclosure by SZSE-listed companies to enhance listed companies’ awareness in this respect and urge them to carry out the green development idea. The White Paper consists of four major parts.

Part 1 is about the policies on green, low-carbon and sustainable development. In recent years, the CPC Central Committee and State Council have put a high premium on green, low-carbon, high-quality and sustainable development, and made several important strategic arrangements. The subordinate ministries and commissions have unveiled supporting regulations, and the Ministry of Ecology and Environment has kept improving the requirements on corporate environment information reporting and disclosure. With all these efforts, a relatively complete policy framework is created from top-level design to implementation.

Part 2 is about the systems related to environmental information disclosure by listed companies. SZSE is proactive in implementing the requirements on green development. Built on the CSR Guidelines for Listed Companies released in 2006, and the Code of Corporate Governance for Listed Companies in China and code of annual report disclosure issued by CSRC, SZSE has set up an initial environmental information disclosure mechanism for listed companies with the self-discipline rules, guidelines and instructions that combine voluntary disclosure and mandatory disclosure of specific items. The White Paper systematically describes the requirements of CSRC and SZSE on environmental information disclosure of listed companies, and guides listed companies in aligning CSR plans and work mechanisms with respective industries and operating reality and making ecological protection part of their development strategies and corporate governance. Also, the White Paper requires all the constituent companies of SZSE 100 Index to disclose CSR reports and all the listed companies identified by environmental protection authorities as key pollutant discharging organizations to disclose related environmental information in annual reports, and encourages other companies to disclose such information.

Part 3 is about the practice and excellent cases of environmental information disclosure by SZSE-listed companies. In recent years, SZSE-listed companies have been increasingly active in environmental information disclosure. In 2021, over 2,300 listed companies issued annual reports that included CSR information. Nearly 1,600 companies disclose information about pollution prevention and treatment, resources conservation and ecological protection, and over 550 companies publicize independent CSR or ESG reports. Besides the increased overall quality of information disclosure, both the width and depth of disclosure of key environmental issues improved as well. The White Paper analyzes the excellent cases of ten listed companies in terms of environmental information disclosure, covering seven key industries including power equipment, automobiles and medical biology. The disclosure covers carbon emission management strategies, concrete steps of promoting green and low-carbon transition and results of implementation, use of energy and water resources, treatment and disposal of waste water, waste gas and solid waste, quantified indicators or data about carbon emission and pollutant discharge, among other important information. With corresponding governance structures in place, most of the companies are representative.

Part 4 is about the practice and the work plan of SZSE. As a major hub of the capital market, SZSE has valued green development and leveraged its role as a platform to channel capital into low-carbon and sustainable sectors. Long been a facilitator of direct financing for green industries, SZSE has become home to quality enterprises in green and low-carbon fields. Also, SZSE has increased the supply of sustainable financial products to meet diversified investment demands, and, as part of its efforts to form a sustainability index system, built a multi-layered ESG index system with its core indexes as parent ones. SZSE has deepened external exchanges and cooperation in sustainability, and helped connect low-carbon and sustainable enterprises and projects with quality industries and resources at home and abroad. SZSE has been active in carrying out sustainability related investor education to increase their knowledge and understanding of the sustainability philosophy.

Next, SZSE will firmly implement the major strategic decision of the CPC Central Committee and State Council on carbon peaking and carbon neutrality, and work to build a system of rules for environmental information disclosure with Chinese characteristics. SZSE will expand the width and depth of environmental information disclosure by stages, steps and subjects, and explore the incentive and constraint mechanism for environmental information disclosure. SZSE will further enrich green financial products including bonds, funds and indexes, guide and encourage market participants to join the building and improvement of the ESG assessment system, and step up investor education and guidance. SZSE will press ahead with cooperation on sustainable finance both at home and abroad, support domestic entities in cross-border cooperation on sustainability, and promote the building of a sustainable financial system worldwide. Also, SZSE will push listed companies to build up expertise and skills in sustainability practice and implement the environmental protection philosophy, so as to better serve green, low-carbon and high-quality development that puts ecology first.