In speaking at the recent Boao Asia Forum Annual Conference, Vice Chairman Fang Xinghai of the China Securities Regulatory Commission (CSRC) announced that the CSRC is preparing new reporting standards and would adopt the new disclosure rules prepared by the International Sustainability Standards Board (ISSB).
Vice Chairman Xinghai noted that the CSRC encourages companies to disclose environmental, social, and governance (ESG) information as sustainability is a current investor focus. Xinghai also stated that the CSRC will report the current state of ESG disclosures by Chinese companies to the International Organisation of Securities Commission, which includes 130 nation members, including China.
It remains to be seen what ESG-disclosure framework the CSRC will adopt and how closely it will align with ISSB standards. However, the announcement highlights the international focus on ESG disclosures.