ESG Report Risk Information Discovery Insufficient Pwish Yongdao: A -share company ESG Management and Practice needs to be further improved

How can ESG report become more credible and valuable?

The world is working hard to solve this problem.

Overseas, the International Sustainable Development Standard Council (ISSB) recently released two IFRS International Financial Report Sustainable Development Discovery Standards (ISDS). In China, A -share ESG compliance requirements have gradually increased, and companies will face stricter ESG disclosure and regulatory requirements. However, the disclosure of the A -share ESG report is not high, the good news is not worried, the quantitative data is small, the statistical indicators and the caliber are not uniform.

In this regard, "Daily Economic News" recently interviewed the Pricewater -Pacific ESG Report and verified partner Yu Jiewen through emails in writing. Talking about these issues, Yu Jiewen said that the management of listed companies is a key driving force to promote the practice of ESG, but from the results of the existing A -share market ESG report disclosure, the management of A -share listed companies needs to be further improved in terms of ESG practice. It can further understand and implement the ESG concept in business management to achieve the perfectness and balance of ESG disclosure.

Pwa Yongdao China ESG Report and Professional Partner Yu Jiewen Picture Source: Interviewee Confer

The company's insufficient disclosure of risk information, the establishment of the ESG disclosure system is urgent

NBD: Many A -share listed companies have insufficient disclosure of ESG's risk information. How do you view some domestic ESG report disclosure of not comprehensive and balanced?

Yu Jiewen: The comprehensiveness of ESG information disclosure requires the market, supervision and enterprises' joint efforts. In recent years, more and more regulatory agencies and capital market rating incorporate negative indicators and negative disputes into disclosure requirements and rating standards, and also further promotes the balance of ESG information disclosure.

As far as the A -share listed company is concerned, on the one hand, the disclosure of the ESG report of the A -share market is mainly based on voluntary disclosure, and has not yet established a systematic ESG rule system. Relevant rules for governance, environment and society are mainly found in related rules such as the "Information Disclosure Format" issued by the China Securities Regulatory Commission, Shanghai Stock Exchange, and Shenzhen Stock Exchange, "Guidelines for the Governance of Listed Companies", "Rules of Stock Listing", and "Guidelines for the Operation of Standards".

In terms of environmental information disclosure, corresponding compulsory disclosure requirements are set for some specific industries and key pollutant discharge units, and the content of information disclosure is also mainly limited to the impact of the company itself on the environment. The impact of stable development and other aspects has no corresponding disclosure requirements.

On the other hand, the management of listed companies pays attention to ESG management. The management of listed companies is a key driving force for promoting ESG practice. From the results of the existing A -share market ESG report disclosure, the management of A -share listed companies should further attach importance to ESG practice, deeply understand ESG, and implement ESG in business management in business management The concept realizes the completeness and balance of ESG disclosure.

In general, at the institutional level, the establishment of an ESG disclosure system that adapts to China's national conditions and meets the characteristics of China's capital market is urgent; at the practical level, listed companies need to further improve their perception of ESG, actively practice the ESG concept, and further improve it ESG disclosed.

Digital assistance to improve ESG data quality, third -party agency verification enhancement report is credible

NBD: ESG management, investment and disclosure all involve many indicators: the environment, society, and governance. How to obtain data and verify the accuracy and integrity of data has always been the focus. What suggestions do you have?

Yu Jiewen: The accuracy and integrity of the ESG index data source is critical to ESG disclosure. ESG digital transformation and ESG report third -party verification is an effective way to improve the quality of ESG index data disclosure.

On the one hand, enterprises can help improve the quality of ESG data through digital tools. On the other hand, enterprises can encourage enterprises to introduce third -party institutions to carry out the verification of ESG indicators, thereby increasing the credibility of ESG reports and improving the level of ESG management.

Picture source: Visual China

NBD: In recent years, the fake of carbon emissions data has occurred. For third -party institutions, how will it ensure its independence and the true accuracy and security of the important data of the company when participating in data tracking and verification?

Yu Jiewen: Carbon emissions are important quantitative information in the disclosure of ESG. For third -party institutions, there are certain differences in participating in data verification and verification. The verification refers to the use of a set of methods to collect evidence and check the facts to verify whether the company is calculated in accordance with industry guidelines in accordance with industry guidelines. Carbon emissions, and certification is a reasonable or limited verification opinion issued by the carbon information disclosure report in accordance with international certification standards.

When carrying out ESG certification work, the enterprise should pay attention to the following matters: follow the principles of independence, certification standards and guarantee levels, data index disclosure specifications, data quality and data archives.

Among them, for the certification standards and guarantee levels, the current accounting firms have carried out ESG reports for verification. Audit or review of the certification business (revised version) "(ISAE 3000), and for the greenhouse gas emissions information or independent greenhouse gas emissions report for carbon dioxide in the ESG report, it is mainly based on the" International Guidelines No. 3410 -Greenhouse Gas Eatriotism Report for verification business "(ISAE 3410). According to the certification criteria, the verification of ESG reports is divided into two levels: reasonable guarantee and limited guarantee. Because the user (target readers) of ESG reports (target readers) are more extensive than financial statements, including regulators, investors, customers, rating agencies, non -governmental agencies, public institutions, etc. The purpose is determined.

In addition, because the data indicators in the ESG report are not yet strictly recognized as the financial statements, the definition of the scope and caliber of the data disclosure of the data indicators in the report is essential for the ESG report.

The accuracy and integrity of data are the focus of ESG reporting. In this regard, enterprises should establish a standardized ESG report to disclose the quality control system, design, execute and maintain internal control related to the quality of data indicators, and clarify the internal data index review liability and related processes to ensure the integrity and accuracy of the data. Enterprises also need to strengthen the archiving specifications of internal ESG -related information and data, and retain the ESG -related accounting books, support documents, and other necessary information and evidence to meet the sampling review requirements of the certification agency.

Investors include ESG into consideration, and IPO applicants should disclose ESG information as soon as possible

NBD: To strengthen the credibility of the ESG data disclosed, encouraging the adoption of third -party verification in the Hong Kong Stock Exchange "ESG Guidelines", which came into effect on July 1, 2020, began to appear. The level of disclosure of the Hong Kong stock listed company ESG has been continuously improved. What impact does this have on its capital market?

Yu Jiewen: With the increase of ESG's work on ESG's work, the level of disclosure of the ESG report of Hong Kong -listed companies has reached a new high, the report structure has become complete, and the content tends to improve.

From the perspective of the performance of the capital market, companies with ESG concepts are generally considered to have high growth and stronger risk capabilities. Enterprises strengthen ESG management and information disclosure, and companies with excellent performance in ESG rating are more likely to gain the trust and support of investors in the capital market.

The relationship between ESG factor and financial performance has also attracted increasing attention global investors. When investors make investment decisions, the trend of incorporating ESG into consideration is becoming increasingly obvious. They no longer focus on the business or financial performance of the applicant's business or financial performance of the applicant for the first public offer (IPO "). Activity.

Therefore, the IPO applicant must take care of corporate governance and ESG as soon as possible, establish the required mechanism during the listing process, and disclose ESG data at the beginning of the prospectus.

The Hong Kong Stock Exchange launched ESG Central Education Platform ESG Academy. Photo source: Screenshot of the Hong Kong Stock Exchange

NBD: PricewaterhouseCoopers investigated the ESG report of Hong Kong listed companies for five consecutive years. What phenomenon or conclusions are of significance for the development of A -share listed companies ESG?

Yu Jiewen: Combined with the survey content, six major development trends will have a more important reference significance for the development of A -share listed company ESG:

Trend 1 is a sound ESG governance to promote the implementation of the overall strategy of the enterprise. The board of directors establish an ESG strategy that matches the business strategy, and supervise and manage the implementation and fully clarify the expected timetable and measurement target of implementing the ESG strategy. Seize opportunities and establish market trust.

Secondly, the corporate ESG strategic results and high -quality disclosure are inseparable from the in -depth participation of stakeholders. The threshold of the ESG report is increasing, and the stakeholders are no longer satisfied with mentioning ESG topics in the ESG report. Therefore, in the process of determining the ESG issue, many companies have actively contacted the relevant parties to understand the ESG issues that are important for them, and think about how to transform it into the overall goal and strategy of the enterprise.

Trend III is that the ESG target setting is imperative. With the improvement of the attention of the interests of the interests of the ESG field, the ESG target setting is the general trend.

With the increase of global climate change risk and the continuous improvement of the importance and attention of the issues related to climate change, regulators have successively issued relevant information disclosure requirements. Trend III is to disclose to promote corporate climate risk response and management optimization.

In addition, as the ESG regulatory level has successively introduced more stringent ESG information disclosure requirements, Trend 5 is the credibility of ESG data and its report information is attracting unprecedented attention.

The last major trend is that ESG brings green finance for enterprises.In the context of the increasing economic downlink pressure in the post -epidemic era, how to achieve longer and sustainable investment income has gradually become the focus of investors.Derivatively, enterprises are actively taking ESG as the main starting point, actively participating in green finance, achieving faster green transformation, and improving the company's own sustainable development capabilities.Picture source: Visual China

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