China publishes first sustainability disclosure standard for businesses
The Chinese Ministry of Finance (MOF), in collaboration with multiple ministries and institutions, has released the ‘Sustainability Disclosure Standards for Business Enterprises – Basic Standard (Trial)’. The standard is voluntary for now, with mandatory requirements expected to follow. It’s publication marks an important step in China’s efforts to standardise corporate sustainability reporting and advance its sustainability agenda.
The basic standard lays out general requirements for sustainability disclosures, covering six key areas: general provisions, disclosure objectives and principles, information quality requirements, disclosure elements, additional requirements, and supplementary provisions. While the basic framework provides overarching guidance, specific standards and detailed application guidelines are expected to be issued at a later stage.
China’s new standard aligns with global trends in sustainability reporting (see elsewhere in this newsletter), encouraging transparency among Chinese enterprises. In the future, mandatory roll out and the use of structured and machine-readable formats, namely XBRL, could play a crucial role in enhancing the quality and usability of such disclosures.
To access the voluntary basic standard and additional FAQs (in Chinese), visit the press release on the MOF website.
