China Mulls Mandatory ESG Disclosures for Domestic Public Firms

China is planning to make ESG disclosures compulsory as part of efforts to shift to a lower-carbon economy, according to people familiar with the matter.

Regulators are working with advisory bodies and rating agencies to formulate a framework for mandatory environmental, social and governance-related disclosures for companies listed in China, the people said, asking not to be identified because the matter is private.

The first step would be to design a standard that is recognized by the international community and applicable to the local market, the people said. China may introduce the requirements first on a “comply or explain” basis ...