The newly revised Company Law of the People's Republic of China (hereinafter referred to as the "Company Law") came into effect today (July 1).
As the basic law regulating the organization and behavior of companies, the Company Law aims to protect the legitimate rights and interests of companies, shareholders and creditors, and to maintain social and economic order. With the rise of ESG (Environmental, Social and Governance) concepts, the Company Law plays an increasingly important role in promoting companies to fulfill their social responsibilities, protect the environment and improve corporate governance.
The Company Law has made many substantial additions in the field of ESG, emphasizing that companies should fully consider the rights and interests of employees, consumers and other stakeholders in their business activities, and pay attention to the concept of environmental protection and corporate social responsibility. These changes provide guidance for the company's ESG compliance system framework and promote green and low-carbon transformation.
In terms of the environment, the Company Law requires companies to comply with environmental laws and regulations, actively take energy conservation and emission reduction measures, and reduce the negative impact on the environment. With the improvement of environmental awareness, more and more listed companies have begun to increase investment in environmental protection, improve resource utilization efficiency, and achieve green development.
On the social front, the Company Law emphasizes that companies should fulfill their social responsibilities and pay attention to employee welfare, consumer rights and community development. Listed companies actively fulfill their social responsibilities and enhance their corporate image and brand value by strengthening employee welfare, optimizing supply chain management, and carrying out public welfare activities.
In terms of corporate governance, the Company Law requires companies to establish and improve governance structures, protect the rights and interests of shareholders, and improve the transparency of information disclosure. Listed companies have continuously improved their corporate governance by strengthening the construction of the board of directors, improving the internal control system, and improving the quality of information disclosure, so as to provide investors with more reliable investment guarantees.
Recently, the "A-share ESG Rating Analysis Report 2024" (hereinafter referred to as the "Report") released by SynTao Green Finance shows that 95% of the CSI 300 companies have released relevant ESG reports. In addition, the report also reveals the performance and impact of ESG investment in the A-share market, pointing out that there is a significant positive correlation between ESG ratings and stock prices within the CSI 300 and CSI 500 constituent stocks.
Based on SynTao Green Finance's STαR ESG data platform, ESG risk radar system and PANDA carbon neutrality data platform, the report conducts in-depth research on the ESG data of more than 5,300 A-share listed companies, and focuses on the ESG rating performance of CSI 800 Index constituents over the six years from 2018 to 2024. The release of the report not only provides investors with detailed data and analysis on the ESG performance of A-share listed companies, but also provides directions and ideas for listed companies to improve ESG management.
In the future, with the further integration of the implementation of the Company Law and the concept of ESG, the ESG performance of A-share listed companies will continue to improve, contributing to the high-quality development of China's economy.
Source: Reporter Teng Juan
Edit: Ruyue
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