The Ministry of Finance of the People’s Republic of China (PRC), together with other ministries and regulators, has officially launched its first national Corporate Sustainable Disclosure Standard No. 1 – Climate (Trial), marking a pivotal step in building a national framework for sustainability reporting.
The standard, jointly issued on 25 December 2025, by the key ministries including Finance, Ecology and Environment, and the central bank, establishes a unified set of rules for enterprises to report on their climate-related impacts, risks, and strategies.
Key Highlights of the Standard include a four-Pillar Framework that aligns with the ISSB Standards. Companies are required to disclose detailed information across four core areas: governance; strategy; risk and opportunity management; and metrics & targets (including Scope 1, 2, and 3 GHG emissions and transition goals). There is also a voluntary trial measure. The standard is currently a voluntary, trial measure, before the scope and requirements for mandatory implementation are specified.
There will be a phased implementation as authorities plan a gradual rollout, starting with voluntary adoption before moving to mandatory and quantitative reporting. The approach will prioritise large and listed companies before extending to smaller and non-listed firms. Additionally, it focuses on global alignment with local priorities. The structure is designed for international comparability, aligning with major global standards, while incorporating specific PRC requirements such as the focus on climate-related impacts and alignment with national climate strategies. By creating a transparent and standardised disclosure system, the government aims to direct investment towards genuine green projects, reduce “greenwashing”, and provide a clear policy tool for the economy’s low-carbon transition. The planned development of industry-specific guidance will further tailor the framework to different sectors like steel, power, and cement.
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