On May 7, 2021, in connection with the implementation of China's Securities Law, which came into effect on March 1, 2020, the China Securities Regulatory Commission (CSRC) published consultation papers on amendments to the "Standards Concerning the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2 — Contents and Formats of Annual Reports" and the "Standards Concerning the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.3 — Contents and Formats of Half-year Reports". The consultation papers propose, among other things, amendments relating to new environmental and social disclosure requirements for listed companies, including:

  • First, in order to highlight the importance of environmental protection and social responsibility of listed companies as public companies, the amendments consolidate all provisions relating to environmental protection and social responsibility into a new "Environmental and Social Responsibility" section.
  • Second, listed companies are required to disclose administrative penalties relating to environmental issues received during the reporting period.
  • Third, listed companies are encouraged to voluntarily disclose the measures they have taken to reduce carbon emissions and their effect, as well as their work on alleviating poverty and revitalizing rural areas.

In addition, the amendments seek to improve existing corporate governance provisions by enhancing annual disclosures on the performance of the Board, requiring the introduction of internal control systems to manage subsidiaries and other requirements.

The consultations are open for public comment until June 7, 2021.

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