Study on the Development of the ESG Agenda in China

Eurasia Development Group: the development of national ESG standards and the growth of non-financial reporting are becoming a foundation for green finance. In China, ESG initiatives are moving from an experimental stage toward systematic measures led by the government.

Greater transparency in non-financial reporting and the introduction of green financial instruments are helping to build a more sustainable economy while reducing environmental risks.

The study examines the evolution of China’s ESG standards, analyzes trends in disclosure by listed companies and participation in international initiatives such as NGFS, PRI and ISSB. It also assesses the impact of new regulations on the development of green finance and mechanisms to combat greenwashing.

Key Findings

• By mid-2023, 34.5% of Chinese listed companies were publishing ESG reports; among the largest companies in the CSI 300, the share exceeded 92%.
• In 2022, ISO 14100 and a sustainable finance classification catalogue defining 72 green economic activities were adopted.
• More than 20 banks and 100 financial institutions in China joined PRI and PRB, stimulating the growth of ESG lending and green bonds.
• The number of Chinese ESG rating agencies exceeded 30, reflecting market expansion and the growing diversity of assessment methodologies.

Market Drivers

Government green finance programs, the development of tax incentives and integration with international standards are creating a solid foundation for large-scale ESG investment.

What This Means for Russian Companies

• Adapt non-financial disclosure practices to Chinese ESG requirements and reporting standards.
• Develop joint green financial products, including bonds and loans.
• Participate in international ESG initiatives and exchange experience with Chinese partners.

Expert Commentary
“China’s ESG model demonstrates how a combination of government regulation and international cooperation is creating a new class of green investment. Russian companies should take these mechanisms into account when developing their own sustainability strategies,” emphasizes Konstantin Matveenkov, Director of ESG and Sustainable Development at Eurasia Development Group.