On March 18, 2025, the Development and Reform Commission of shenzhen Municipality issued the "Shenzhen Work Program for Promoting the Construction of Environmental Social Governance (ESG) System and Creating a Pioneer City of Sustainable Development (2025-2027)", focusing on building an ESG ecological system with corporate ESG practices as the main body, ESG standards and norms system with Shenzhen characteristics as the support, and green industrial chain supply chain and investment and financing environment as the core, aiming to accelerate service and integration into the new development pattern, seize the huge opportunities of carbon peak and carbon neutrality, and promote Shenzhen to become a leading demonstration area for high-quality ESG development at home and abroad, and build a pioneer city for sustainable development.

Since 2024, the International Sustainability Standards Board (ISSB), the Ministry of Finance, and the Beijing, Shanghai, Shenzhen, and Hong Kong Stock Exchanges have successively issued sustainable disclosure standards to guide corporate ESG disclosure.

The work program points out that Shenzhen has advantages such as strong advanced manufacturing, large import and export scale, strong competitiveness in green and low-carbon development, and developed financial services. It should strive to explore a sustainable development path that connects with the international and reflects Chinese characteristics and Shenzhen characteristics between connecting with international rules and meeting domestic market demand.

The work program clearly puts forward "four principles":

• Connecting with the international and embracing all - actively connecting with international standards (such as IFRS, GRI, etc.) and responding to relevant EU rules (such as CBAM, CSRD, etc.); proposing Shenzhen's ESG standard system and ESG practice requirements for enterprises and institutions.

• Step by step, key breakthroughs - focusing on key areas such as new generation electronic information, green and low-carbon, digital and fashion, high-end equipment, new materials, biomedicine and health, and promoting ESG information disclosure from listed companies to non-listed companies and from large enterprises to small and medium-sized enterprises;

• Market-led, government-guided - give full play to the market-oriented role, the role of corporate entities, and the role of various market trading mechanisms, innovate ESG financial products and services, and strengthen ESG financial exchanges and cooperation between Shenzhen and Hong Kong.

• Application-oriented, innovation-driven - widely use digital means such as big data, blockchain, artificial intelligence, etc., deeply promote technological innovation, model innovation, management innovation, and develop new ESG business models.

The work program proposes to achieve the following goals by 2027:

• Full coverage of ESG disclosure by municipal directly-managed enterprises and state-owned enterprise-controlled listed companies;

• Strive to achieve an ESG disclosure rate of 60% for Shenzhen A-share listed companies in key areas;

• Formulate no less than 10 ESG-related standard guidelines;

• Cultivate or introduce no less than 10 well-known ESG disclosure, certification, and rating service institutions, and cultivate no less than 30 ESG practice pioneers with international influence to form a demonstration effect;

• The scale and service benefits of sustainable development-linked financial products continue to improve;

• Basically form an ecological system with high-level ESG practices of leading enterprises, high-standard construction of green industrial chain supply chain system, and high-quality development of ESG investment and financing market.

To implement the above goals, the work program proposes the following key tasks:

1. Constructing a Shenzhen-specific ESG standard system

Establish ESG full-process service standards and strengthen the construction of corporate ESG management standards. Support consulting agencies, financial institutions, industry associations and research institutes to actively participate in the formulation of domestic and international sustainable standards and industry standards, issue general standards and Shenzhen-specific industry sustainable information disclosure guidelines, explore certification specifications and practical guidelines, and develop rating standards. Formulate compliance standards for environmental management, social responsibility, and key risk areas to enhance the modern governance capabilities and sustainable development levels of enterprises.

2. Classified measures to improve the level of ESG practice

For different groups such as municipal state-owned enterprises, foreign trade enterprises, overseas enterprises and private small and medium-sized enterprises, specific measures are proposed to deepen ESG governance, promote green trade, enhance international competitiveness and encourage small and medium-sized enterprises to practice ESG concepts. At the same time, cultivate ESG consulting service agencies with international competitiveness and support the implementation of ESG innovation pilots.

3. Promote the development of ESG investment and financing system

Design and provide carbon emission accounting and investment and financing environmental benefit measurement tools to strengthen the environmental information disclosure of financial institutions. Establish an ESG investment and financing enterprise and project database, and enrich ESG financial products and services. Provide ESG financing facilities for enterprises and small and medium-sized enterprises with good ESG ratings. Support overseas investors to participate in Shenzhen's green financial market.

4. Digital empowerment and external cooperation and exchange

By expanding the supply and development and utilization of ESG data resources, build an industry-specific ESG database, and create typical application scenarios for data elements. At the same time, promote ESG international exchanges and cooperation, and deepen ESG exchanges and cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area. Explore the construction of Shenzhen, Hong Kong, and Macao ESG standards and evaluation mutual recognition systems, and promote the "soft connection" of standards and rules. Research and enrich green, low-carbon, new energy, and ESG-related products, and strengthen cooperation in green finance and sustainable supply chain management.

5. Guarantee mechanism construction

Establish an ESG development department coordination mechanism. Cultivate and introduce professional talents, and encourage the coordinated development of ESG discipline construction, industry incubation, and vocational training. Support each district to provide financial support for ESG pilot projects in key industrial parks, enterprise ESG capacity building, and project green investment and financing in accordance with laws and regulations. Release ESG practice pioneer cases, play a demonstration role, and improve the awareness and participation of the whole society.

Editor's note:

This work program for Shenzhen to promote the construction of the ESG system not only clarifies the development direction of Shenzhen in the next three years in terms of environment, social responsibility and corporate governance, but also provides specific operational guidance for various types of enterprises, especially state-owned enterprises, foreign trade and small and medium-sized enterprises. Through the construction of a standard system, classified policies and investment and financing support, Shenzhen is making every effort to build a high-standard and high-quality ESG ecological system, laying a solid foundation for the comprehensive green transformation of the economy and society.

Author: Qinger