China has introduced new ESG Reporting Standards with the goal of making ESG reporting mandatory and aligned with ISSB standards by 2030. Key standards will be implemented by 2027. The first set of national standards for environmental, social, and governance aim to promote sustainable development and improve transparency.

The new guidelines, issued by the China National Institute of Standardization (CNIS), cover a wide range of areas, including environmental protection, resource conservation, employee rights, product quality, corporate governance, and community engagement.

Companies are encouraged to adopt these ESG reporting standards in their annual reports, sustainability reports, or separate ESG reports. The standards are expected to help investors make more informed decisions and promote sustainable investment practices in China.

This move comes as ESG investing is gaining traction globally, and China is actively promoting green finance and sustainable development to address environmental challenges and achieve its carbon neutrality goals.