Dear EB reader,

Mainland China's three main stock markets recently unveiled environmental, social and governance (ESG) disclosure rules for its largest companies. Beginning in 2026, more than 400 companies listed on the indexes will need to report their sustainability credentials. The number might look small but these corporations together account for more than half of the bourses' combined market value.

The rules and their general alignment with the European Union's reporting mandate send a clear signal on what the de facto global standard is shaping up to look like. Notably, observers have highlighted that they go far beyond what the United States' Securities and Exchange Commission (SEC) has reached a consensus on, and include reporting on Scope 3 or value chain emissions. Some are warning that the US, by falling short of expectations that it will push the corporate sector further on disclosure and demonstrate stronger ESG commitment, might lose its competitive advantage to its biggest rival on the global stage. The SEC decision is still facing legal challenges.

For China, it is now looking at helping small and medium enterprises raise their ESG game. Even if smaller firms are not yet subjected to rules on the home front, they need to meet increasingly stringent sustainability-related rules in other markets. Artificial intelligence and technology-based solutions, which are China's strengths, might help companies make the leap.

Climate missing from high-level agenda

China's 'Two Sessions' meetings, the country's highest profile political gatherings of the year, provided little cheer for climate. Experts noted that environmental topics were placed on the back burner in light of economic challenges. Local provinces, however, are still bullish on electric vehicle development plans.

Clean shipping ambitions

Hong Kong's budget, unveiled in early March, outlined the city's plans to set up a regional green fuel bunkering centre and develop smart ports. Its finance chief said the government will dish out incentives and subsidies to vessel owners and industry players that have set out action plans to reduce their emissions.

China finance veteran joins World Bank leadership

The World Bank Group announced the appointment of Zhang Wencai as managing director and the group's chief administrative officer. Chinese experts say the move reflects China's growing presence in global governance. Zhang was vice president of the Export-Import Bank of China.