Mandatory reporting for some listed companies will begin in 2026, but thematic standards are still missing.
China’s Promise: Sustainability Reporting Starting in 2026
In 2024, China took a historic step by launching the Chinese Sustainability Disclosure Standards (CSDS) — its national framework for ESG (Environmental, Social, and Governance) reporting.
According to the CSDS Basic Standard (Trial), the first companies required to publish an ESG report will be those included in the SSE 180, STAR 50, and SZSE 100 indices, with mandatory implementation starting in 2026.
The long-term goal is clear: by 2030, China aims to align with international standards such as ISSB, GRI, and ESRS.
But as of today, the process remains incomplete: sector-specific thematic standards and reference indicators are not yet available.
What We Know: A Regulatory Framework Without Measurement Tools
The CSDS-Basic Standard, effective August 1, 2024, defines general principles — such as double materiality and strategic alignment — but it does not yet provide operational guidance for impact measurement.
The type of information to be disclosed is only suggested, not mandatory:
- Environmental data: emissions, resource consumption, resource management
- Social data: working conditions, health and safety, diversity
- Governance data: board structure, anti-corruption practices, ESG-related remuneration
However, without clear indicators, binding targets, or sector-specific obligations, reporting risks becoming a formal exercise rather than a meaningful one.
The Risk: More Reports, Less Direction
China appears to have adopted the Western “report-first” approach, but the paradox remains:
How can you report without a strategy?
Many companies — even in Europe — are learning the hard way that publishing a report doesn’t make them sustainable.
Without defined objectives, robust metrics, and actionable plans, sustainability reports risk becoming self-referential documents, offering little value to investors or society.
Sustainability Isn’t Measured in Reports.
It’s measured in choices.
In how a company connects its long-term vision to real-world impact.
In how it integrates sustainability and competitiveness.
The year 2026 will be a crucial test — not just for China, but for any company that wants to avoid the same mistakes we’ve already seen elsewhere.
Because without a strategy, even the most polished report remains empty.
Main sources:
Official communications from SSE, SZSE, and the Ministry of Finance