On April 30, the General Offices of China's Ministry of Finance and Ministry of Ecology and Environment unveiled the draft of "Corporate Sustainability Disclosure Standard No. 1 – Climate (Trial) (For Public Consultation)."
Source： China News Service
On April 30, the General Offices of China's Ministry of Finance and Ministry of Ecology and Environment unveiled the draft of "Corporate Sustainability Disclosure Standard No. 1 – Climate (Trial) (For Public Consultation)."
The draft comprises six chapters with a total of 47 articles, covering general principles, governance, strategy, risk and opportunity management, metrics and targets, and supplementary provisions. Chapter two on governance specifies disclosure objectives, detailing the information to be disclosed about governance bodies or individuals, management disclosures, integrated governance reporting, and third-party verification requirements. Chapter five addresses metrics and targets, outlining common industry-wide climate indicators, industry-specific metrics, climate-related goals, and the basis for greenhouse gas emissions accounting.
In a bid to actively participate in international governance processes and steadily develop China's sustainable disclosure standards system, the Ministry of Finance, in collaboration with the Ministry of Foreign Affairs, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Commerce, the People's Bank of China, the State-owned Assets Supervision and Administration Commission, the China Securities Regulatory Commission, and the National Financial Regulatory Administration, conducted an assessment of the applicability of international sustainability reporting standards within China in late 2023. Based on this assessment, China's strategic approach to building its sustainable disclosure standards system has been clarified. The overall goal is to have the basic corporate sustainability disclosure standards and climate standards introduced by 2027, and to establish a unified national system by 2030.
According to the Ministries of Finance and Ecology and Environment, considering enterprises' current capacity for disclosures, the formal release of the climate standards will initially follow the arrangements of the basic standards, with implementation scopes and requirements to be defined later. During this transition, companies will adopt these standards on a voluntary basis. Given the diverse application of climate standards across different industries, work has also begun on developing sector-specific implementation guidelines for industries including power, steel, coal, oil, fertilizers, aluminum, hydrogen, cement, and automotive sectors. These guidelines are expected to be published alongside or shortly after the standards’ official release, providing targeted guidance for applying the standards within these specific industries.
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