More A-share listed firms disclose ESG information: report

BEIJING, July 6 (Xinhua) -- A growing number of firms listed on China's A-share market are starting to release information on environmental, social and corporate governance (ESG) as such information is proven increasingly related to company performance and share prices, a report said.

The number of ESG reports issued by A-share companies has steadily increased in recent years, with a total of 1,021 such reports released as of mid-June this year, compared with 371 in 2009, according to SynTao Green Finance, a consultancy.

More than 86 percent of companies included in the Hushen 300 index, which is composed of firms with large market capitalization and high liquidity, released ESG information in 2020, showing strengthened ESG awareness among industry-leading companies, the consultancy said in a report.

As China further opens its financial market, many Chinese firms have been improving their commitment to ESG to better meet the demands of global investors who use ESG as a screening criterion.

The global index compiler MSCI said last year that Chinese companies included in the MSCI benchmark indexes scored higher on ESG criteria as a result of stringent domestic regulations and the greater importance they attached to environmental protection, social responsibility and corporate governance.

The report also found a positive correlation between A-share companies' ESG scores and their share prices, indicating potential higher returns on responsible investment.