Driving one of the world’s largest and most dynamic economies, China’s enterprises have a leading role to play in delivering environmentally friendly and socially responsible prosperity, both domestically and around the world. Quality reporting of corporate environmental, social, and governance (ESG) metrics can guide capital flows, help regulators make timely policy decisions, and enable customers to make informed supply chain management decisions that foster sustainable growth.

China’s ambition to reach peak carbon before 2030 and achieve carbon neutrality by 2060 will require companies to act now to transform, to various extents, to a lower-carbon business model. ESG reporting, including making emissions data visible and comparable, is a key ingredient in this transition.

We have highlighted six key insights about the ESG journey for Chinese companies. These arose from discussions with ESG practitioners from more than 30 companies across various industry sectors in workshops convened by the World Economic Forum in China over the past six months. To provide illustrations from real-life journeys, there are Q&As from five different companies about their approaches to ESG reporting and its integration into their business operations.

Report by the World Economic Forum