On Jan. 5, China's Ministry of Finance released the country’s first national corporate climate report framework, titled Corporate Sustainable Disclosure Standard No. 1 – Climate (Trial). The standard sets voluntary guidelines for companies to disclose climate-related information and is intended to align with international reporting frameworks.

The framework will start on a voluntary, trial basis, with future plans to broaden its scope and require mandatory reporting. The ministry said that the guidelines will

“establish a transparent, comparable, and reliable climate information disclosure system, strengthen the supply of standards to support green and low-carbon development, help guide market expectations, regulate corporate behavior, and scientifically assess the progress of transformation, and provide key policy tools and institutional infrastructure for transforming the 'dual carbon' target from a national macro strategy to corporate micro actions.” The "dual carbon" target refers to the nation's stated goal of reaching peak carbon emissions before 2030, and achieving net carbon neutrality by 2060.

The new framework establishes a national structure for climate-related corporate disclosures in the world’s second-largest economy. Alignment with global standards would make Chinese companies’ disclosures more comparable with disclosures from companies operating in other markets.

The ministry also said standardized disclosures would reduce inconsistent reporting and help guide capital toward low-carbon projects, giving the framework implications for financial markets as well as industrial policy.

The climate disclosure standard is intended to align with international reporting frameworks developed under the International Financial Reporting Standards Foundation, which oversees global accounting and sustainability reporting initiatives. Within that structure, the International Sustainability Standards Board develops climate and sustainability disclosure standards for companies and regulators in multiple jurisdictions.

Chinese officials said the new framework follows the overall structure of the board’s climate disclosure model, while incorporating China-specific requirements. The Ministry of Finance also indicated that industry-specific guidance is under development for sectors including power, steel, coal, petroleum, cement, and automobiles, with future implementation expanding from voluntary to mandatory reporting.

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