Empowering Listed Companies and Building an ESG Ecosystem——SSE Hosts “Dialogue with International Investors: Empowering Listed Companies through ESG” Training Session

In line with the action plan to enhance the quality of sustainable information disclosure and ESG ratings of companies listed on the Shanghai Stock Exchange (SSE), and to facilitate direct engagement between SSE-listed companies and international investors and rating institutions, the SSE held a training session titled “Dialogue with International Investors: Empowering Listed Companies through ESG” on July 9. Representatives from Norges Bank Investment Management (NBIM) and Morgan Stanley Capital International (MSCI) were invited as guest lecturers. The event attracted participation from board secretaries, securities affairs representatives, and ESG officers from more than 30 listed companies.

In recent years, a growing number of global investment firms have turned their attention to the quality of sustainability information disclosure and ESG ratings of listed companies. Companies with higher ESG ratings are more likely to be included in ESG indices and ETF portfolios, granted higher investment weightings, and attract more long-term, value-oriented, and responsible investments. At the same time, China has introduced a series of policies on sustainability information disclosure in quick succession, propelling the country into the fast lane of ESG development. On one hand, companies listed on the SSE have shown a steady increase in ESG reporting rates and noticeable improvements in ESG rating levels. In 2024, over 1,300 companies listed on the SSE issued standalone ESG-related reports, pushing the disclosure rate to 57%—a record high. Additionally, the number of companies listed on the SSE receiving high ratings from both domestic and international ESG rating agencies has risen significantly. On the other hand, despite a certain degree of divergence in global ESG investment sentiment, China’s rapid progress in ESG development continues to garner active attention and recognition from international investors.

This training marked the fifth consecutive year that SSE has hosted the event. It aims to enhance communication and engagement between international investors, rating agencies, and companies listed on the SSE on ESG topics, and to help companies stay informed about the latest developments in international sustainability disclosure standards, ESG rating methodologies, and investment practices. NBIM, one of the world's largest sovereign wealth fund managers, participated in the training. China is currently NBIM’s second-largest investment market in Asia. During the session, representatives from NBIM introduced various approaches the institution adopts to implement its responsible investment framework. MSCI presented its latest ESG rating methodology at the training. Representatives from companies listed on the SSE engaged in in-depth discussions with the two institutions on topics including ESG scoring mechanisms, how to balance ESG investment with its short-term financial impact, data sources, controversy assessments, and external assurance.

Looking ahead, the SSE will continue to roll out a series of training sessions and roadshows, with a focus on guiding listed companies to enhance their ESG ratings and investment appeal. These efforts aim to attract more long-term international capital to the SSE market.