On December 17, 2024, China’s Ministry of Finance (MOF), along with nine other government ministries, jointly issued the “Corporate Sustainability Disclosure Standards – Basic Standards” (Cai Kuai [2024] No. 17, hereinafter referred to as the “Basic Standards”) for trial implementation.
Dr. Ma Jun, Chairman of the Green Finance Committee of the China Society for Finance and Banking, President of the IFS, and a member of the MOF expert group on sustainability disclosure standards welcomed the issuance of these disclosure rules. He noted that, following more than six months of public consultation, the official release of the “Basic Standards” marks the beginning of establishing a sustainability disclosure framework in China. This is of great significance in guiding and promoting corporate sustainability-related disclosures in China, ensuring a level playing field for companies in international competition, and mobilizing sustainable finance. It will also play a key role in facilitating the implementation of China’s “carbon neutrality goal.”
The Basic Standards are based on IFRS S1 but adopt the principle of “double materiality.” This means that preparers of sustainability reports must not only address the impact of climate change and climate actions on companies and their valuations but also analyze and report the impact of business operations on the environment, economy, and society.
Dr. Ma Jun stated that, following the issuance of the “Basic Standards,” the next key steps should include developing an implementation roadmap and timeline and increasing efforts toward capacity building. In this regard, the Capacity-building Alliance of Sustainable Investment (CASI) is well-positioned to assist China's MOF and the ISSB Beijing Office.
CASI is an international platform for sustainable finance capacity building, established in 2023 during COP28 as a response to the G20 Technical Assistance Action Plan (TAAP). Its capacity-building events have already served 5,000 participants in the first eleven months of 2024.
