Transparency in Corporate Disclosure Steadily Improves ESG is a Key Factor in Assessing Long-term Value of Enterprises

Securities Times Reporter: Yang Xia

ESG advocates for values such as economic prosperity, environmental sustainability, and social fairness, which are highly consistent with achieving the strategic goal of "dual carbon". As a pioneer in ESG practices, listed companies as the cornerstone of China's capital market play a leading role in implementing ESG principles. On October 24th, the "2024 China Listed Company ESG Development Exchange Meeting" hosted by Securities Times was held in Kunshan, and the list of "2024 China Listed Company ESG Top 100" was announced, recognizing listed companies that have actively practiced ESG and achieved significant results. This article will comprehensively analyze and summarize the characteristics of award-winning companies in ESG practices, aiming to guide and promote more listed companies to follow up on new development concepts and improve their high-quality development levels.

ESG Disclosure Transparency

Helps Value Discovery

In recent years, with the gradual improvement of ESG disclosure policies in China, more and more listed companies have begun to pay attention to ESG management and practices. In April, the Shanghai Stock Exchange officially released the "Guidelines for Listed Company Sustainability Development Reports", guiding and standardizing the disclosure of ESG reports by listed companies, filling a gap in ESG disclosure standards.

Under policy guidance, listed company ESG disclosure transparency has continued to improve. As of September 30th, 2211 A-share companies disclosed their 2023 annual ESG-related reports, with a disclosure rate of 41.4%, setting a new high record. The top 100 ESG award-winning companies, as the pioneers of ESG practices, have taken the lead in disclosure transparency.

Establishing a complete ESG management framework is essential for ESG practices. Among the award-winning companies, more than 70% have established ESG development strategies and targets, and over 73% have designated teams responsible for ESG management and implementation work. Huaxin Technology has built a hierarchical ESG governance structure, with the board of directors as the highest decision-making body, setting up a sustainable development committee and office to coordinate company ESG strategy, ensure the progress and high-efficiency implementation of ESG management, and further promote the company's sustainable development.

From the perspective of management content, substance-related issues identification is the "soul" of ESG reports, directly reflecting a company's ESG work performance. Among the award-winning companies, 93 have conducted substance-related issue identification, far exceeding the overall A-share ratio of 26.6%.

Regarding the importance of ESG disclosure, many listed companies have emphasized that good ESG disclosure is closely related to company management and long-term profitability. Yijie Technology believes that a good ESG performance often has a close relationship with a company's long-term profitability and market reputation, and ESG disclosure can help institutional investors discover companies that are lowly estimated by the market but have sustainable development potential.

ESG Top 100 Companies

Setting an Example of Best Practices

Environment, society, and corporate governance are the three pillars of ESG practices. Comprehensive analysis shows that ESG top 100 companies have performed well in all three aspects, setting an example for listed company ESG practices.