China has unveiled its first set of Basic Standards for Corporate Sustainability Disclosure, marking a significant milestone in its ESG journey. The standards aim to guide businesses in disclosing sustainability-related information, aligning with global expectations and regulatory frameworks. The new standards build on an Exposure Draft released in May 2024. They will be voluntary until implementation requirements are stipulated.
The Basic Standards provide a structured approach to ESG disclosure, outlining objectives, principles, and requirements for reporting. They cover key elements such as governance, strategy, and risk management. The standards will be phased in, with full implementation planned by 2030. This development is poised to transform sustainability reporting in China.
