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Qianhe Finance丨Is there any shortcut for listed companies to improve their ESG performance?

2024-08-20

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For many listed companies, the real implementation of the responsibility and obligation of ESG disclosure has only been in the past two or three years. In fact, it is still quite common for many companies, from directors, supervisors and senior managers to grassroots employees, to not understand, be unprofessional or even have never heard of ESG. Although the chairman or secretary of some listed companies have participated in special training organized by the China Securities Regulatory Commission or the exchange, they still do not know much about the specific operations of ESG work, such as project initiation, staffing, department coordination, determination of topics and key indicators, data collection and collation, report preparation, review, design and release, report rating and other aspects.

The people at the top have only a superficial understanding of the information, and the people below can only piece it together or copy and paste. Therefore, when professional matters are handed over to non-professionals, the quality and rating of the report are difficult to guarantee. This is also one of the important reasons why the quality of ESG reports of listed companies in my country is uneven.

Three major misunderstandings in ESG practice

If your cognitive level doesn't keep up, you will fall into many misunderstandings and take many detours in practice.

Qianhe Finance has summarized its experience in providing professional ESG services for more than ten years and concluded that the misunderstandings in ESG practice mainly include the one-sided understanding of S (society), the misunderstanding of G (governance), and the problem of ESG being instrumentalized.