The ESG Disclosure Regulations at the Shanghai Stock Exchange: An Empirical Research

Abstract

This thesis aims at exploring the development of the ESG (Environmental, Social, and Governance) standards in China, with a specific focus on the Shanghai Stock Exchange (SSE). The study is conducted through a detailed analysis on the history of the ESG regulation around the world and in China, searching for reasons that led to the publication of the 2024 “Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report”.

After a thorough literature review, the empirical research proceeds on examining the requirements of the “Guidelines for Environmental Information Disclosure of Listed Companies on the Shanghai Stock Exchange”, the current sustainability regulation that was published in 2008 and providing a comparison with the latest published guidelines, that will take effect starting from 2026. The results will be based on 25 SSE listed companies’ sustainability reports, and the method used it the content analysis.

Findings of our research will show the high level of disclosure under the 2008 ESG regulations, and a surprisingly good result also under the 2024 issued requirements, demonstrating that companies are positively ready to implement these new guidelines.