A new set of voluntary guidelines for Chinese companies to report environmental, social and governance metrics take effect Wednesday, offering a glimpse of what mandatory disclosures might eventually look like in the country, reports Bloomberg.
Developed by China’s biggest companies and government-backed think tanks, the standards list more than 100 metrics that generally align with the global benchmark of draft rules issued by the International Sustainability Standards Board. The differences are they’re more simplistic and add “Chinese characteristics” that measure things like corporate charity.
The guidance “encourages companies to consider their responsibility as a corporate citizen” rather than looking at ESG from a pure “compliance or risk management perspective,” Jingwei Jia, an ESG analyst at Fitch Ratings Co., said in an interview. “It’s a more comprehensive and holistic view of ESG.”