China Unveils Its First Set of Basic Standards for Corporate Sustainability (ESG) Disclosure, December 23, 2024

• In December 2024, China introduced a Basic Standards of its Corporate Sustainability Disclosure Standards, aiming to guide businesses in aligning their sustainability practices with global ESG expectations. This marks a significant step towards a unified national ESG reporting system, with full implementation expected by 2030.
• The Basic Standards are to be implemented by enterprises on a voluntary basis before the scope of implementation and implementation requirements are stipulated.
• While China is working to harmonize its ESG standards with global frameworks, challenges remain in data accuracy and balancing international standards with local priorities.

China has made significant strides in advancing corporate sustainability and environmental, social, and governance (ESG) practices in recent years. As part of its commitment to fostering greater transparency and accountability, the Chinese Ministry of Finance (MOF), in callaboration with nine other departments, unveiled the new Corporate Sustainability Disclosure Standards—Basic Standards (hereinafter, “Basic Standards”) on December 17, 2024. These standards are designed to guide businesses in disclosing sustainability-related information, ensuring that their practices align with global expectations and regulatory frameworks.

These Basic Standards build on an Exposure Draft released by the MOF in May 2024. Businesses can voluntarily adopt these Basic Standards before the scope of implementation and implementation requirements are stipulated.

The release of the Basic Standards is part of a broader initiative to establish a unified national framework for corporate sustainability reporting in China. This marks a critical miletsone in hormonizing corporate sustainability disclosures across the country and integrating global best practices.

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