CSRC: Promote the use of third-party verification or audit for ESG reports

On February 28, the China Securities Regulatory Commission (CSRC) website publicly released responses to the suggestions from the Third Session of the 14th National People’s Congress and the proposals from the Third Session of the 14th Chinese People’s Political Consultative Conference. In response to the proposal titled “Accelerating the Issues and Countermeasures of ESG Information Disclosure by Listed Companies in China,” the CSRC stated that moving forward, it will guide stock exchanges to continuously summarize best practices of listed companies, strengthen dynamic assessments of the guidelines for sustainable development report disclosures, and constantly enhance the rules’ adaptability, effectiveness, and operability. The CSRC will also improve the system for sustainable development information disclosure by listed companies. The CSRC indicated that it promotes the use of third-party verification or review for ESG reports. The guidelines for listed companies’ sustainable development report disclosures encourage companies to introduce third-party verification or review to improve disclosure quality, and specify requirements for the independence, experience, and qualifications of third-party organizations, as well as the scope, basis, and main procedures of third-party verification or review reports. The CSRC further stated that it will continue to monitor international and domestic theories, rules, and practices related to sustainable development verification. (China Securities Journal)