According to the latest MSCI ESG rating results, Everbright Securities has remained at a B rating. Since being downgraded from BB at the beginning of 2023, the company’s rating has been stagnant for two consecutive years. This situation reflects a critical bottleneck in the company’s ESG governance and disclosure—caught between formal compliance and substantive depth.

In early 2025, Everbright Securities released its 2024 ESG Report, which demonstrated a high level of formal standardization. The report aligns with the regulatory requirements of both the A-share and H-share markets and adheres to the GRI Standards, covering major operating entities with a detailed content index. However, the absence of independent third-party assurance weakens the report’s credibility and external verification.

The report follows the “double materiality” principle, identifying key issues such as serving the real economy, green finance, inclusive finance, risk management, fintech, climate action, and corporate governance enhancement. These themes align with the ESG characteristics of the securities industry, but the depth and forward-looking nature of disclosure remain insufficient.

Governance: “Paper Framework” Masking “Executional Shortfalls”

The report provides extensive data on the company’s governance performance, including corporate structure, compliance operations, risk control, and supply chain management. However, these well-documented disclosures sharply contrast with a series of compliance violations that occurred during the reporting period:

- August 2024: The former general manager of the investment banking division was fined RMB 4.6 million and banned from the securities market for ten years by the CSRC for insider trading of Starshine Technology shares.

- October 2024: The CSRC issued a warning letter to Everbright Securities for inadequate internal controls in its investment banking projects—specifically, weak risk assessment, incomplete due diligence documentation, and insufficient disclosure of internal control issues in sponsor reports. The company was required to strengthen internal management and hold responsible personnel accountable.

- December 2024: The CSRC’s Xiamen Bureau issued another warning letter to Everbright Securities’ Xiamen Zhanhong Road Branch for multiple employee misconduct incidents and insufficient compliance oversight, recording the matter in the integrity archive.

Moreover, in 2025, two additional branches received administrative regulatory measures for inadequate compliance management, alongside recurring employee-level violations. These incidents clearly demonstrate that Everbright Securities’ governance framework faces serious executional deficiencies—its sophisticated “paper framework” has not translated into robust compliance practice.

Social: “Data Disclosure” Lacking “Managerial Insight”

The report’s social section provides comprehensive data disclosure but falls short in analytical depth.

- It discloses an overall employee turnover rate of 14.16% and a turnover rate of 24.43% among employees under 30, yet offers no analysis of underlying causes or mitigation strategies.

- It reports a 70% customer complaint resolution rate, but lacks categorization by complaint type or a structured improvement plan.

Although the company reported no data breaches or privacy incidents during the reporting period, the Shanghai Communications Administration recently publicly criticized its subsidiaries’ apps—Everbright Securities Tech e-Station and Everbright Futures Hall—for failing to clearly disclose personal information handling rules. This indicates room for improvement in information security governance.

Environment: “Green Finance” Shines, “Own Emissions” Remain Vague

As a financial institution, Everbright Securities’ environmental disclosures focus on green operations and green finance, highlighting its contribution to sustainable development. However, the depth of disclosure concerning its own operational impact is notably weak:

1)The report only includes Scope 1 and Scope 2 emissions, with no Scope 3 data;

2)It lacks quantitative carbon neutrality or reduction targets, leaving its green commitments without a concrete strategic pathway.

Conclusion

Overall, Everbright Securities’ 2024 ESG Report demonstrates a high level of disclosure standardization and structural completeness. Yet, it falls short in data depth, target setting, and strategic implementation. The frequent compliance issues further undermine the credibility of its “sound governance” narrative.

To achieve an ESG rating breakthrough, the company must move from “comprehensive disclosure” to “substantive improvement.” This entails introducing third-party assurance to enhance credibility, deepening data-driven management insights, and setting quantitative, forward-looking ESG goals—ultimately bridging the gap between form and substance.

Author：Qinger