Successful prevention and control of pollution is one of the three major tasks in the final stage of building a comprehensively well-off society. Focusing on strengthening the supervision on environmental information disclosure and improving market services, SZSE appeals to and guides listed companies to earnestly assume the responsibility of pollution control and environment protection. The quality of environmental information disclosure of SZSE-listed companies has been significantly improved.
Environmental information disclosure improves in both quantity and quality
On the one hand, the amount of listed companies that disclosed environmental information has increased significantly. 666 companies disclosed environmental information in their 2018 semi-annual reports, a substantial increase of 40% compared with the 476 companies that did so in their 2017 annual reports.
On the other hand, the disclosure content of environmental information has become more detailed and informative. In addition to the environmental information required by relevant rules and regulations, as many as 215 listed companies, 32.28% of the total making environmental disclosure, voluntarily disclosed additional information in the 2018 semi-annual reports, including the establishment and implementation of environmental liability systems, the amount of environmental protection investment, the certification of environmental management systems, and the audit result on clean production. This far exceeds the number of companies making voluntary disclosure in the 2017 annual reports.
New highlights in environmental information disclosure by enterprises in key industries
Violations quite often occur in the of environmental disclosure in such industries as coal-fired power, steel, nonferrous metals, chemicals, building materials, pharmaceuticals, and paper-making. In the first half of 2018, SZSE severely treated listed companies such as *ST SWGC and Luoping Zinc and Electricity that seriously violated rules of information disclosure, forming a powerful deterrent to the disclosure violations. The 2018 semi-annual reports show that the enterprises in key industries earnestly follow the environmental disclosure requirements, which presents new highlights in the disclosure.
Firstly, comprehensively leveraging environmental information disclosure platforms to facilitate public access to instant environmental information. In addition to such disclosure in periodic reports, many companies also publish in their semi-annual reports the official Weibo, official WeChat, official website, monitoring information platforms of environmental protection departments, and “environmental credit” websites, keenly welcoming social supervision on their environmental information.
Secondly, actively disclosing the implementation progress of industrial energy conservation and emission reduction plans. In the Action Plan of Energy Conservation, Emission Reduction, Upgrade and Transformation of Coal-fired Power Plants (2014-2020), it is proposed to achieve ultra-low emission transformation of coal-fired power industry by the end of 2020. Over 60% companies in the industry actively disclosed their 2018 semi-annual reports the progress and arrangements towards completing the ultra-low emission transformation of coal-fired power conservation and emission reduction. Some companies have completed environmental protection and emission reduction tasks ahead of schedule, and some will have their ultra-low emission transformation projects come to an end in 2018.
Strengthened supervision on information disclosure: seamless integration throughout the process of before, midst and after events
Disclosing environmental information is a key and difficult issue for listed companies in recent years. In order to improve SZSE-listed companies’ relevant disclosure in 2018 semi-annual reports, SZSE has thoroughly deployed the supervision.
Firstly, making full use of technological means to optimize the reporting system for periodic reports of listed companies and the post-review system of supervisors. System control and alert functions are added to promptly remind and urge listed companies to be vigilant whether they are on the list of key pollution emission companies issued by the environmental protection department, and whether they have disclosed environmental information in accordance with regulations. In doing so, it can be effectively ensured that all relevant SZSE-listed companies disclose their environmental information, minimizing the amount of listed companies that violate disclosure requirements.
Secondly, comprehensively reviewing the regulatory measures taken in 2016 and 2017 against disclosure violations. Reminders are specially given to the industries and companies that feature frequent disclosure violations in previous years, requiring relevant enterprises to learn their lessons, value environmental information disclosure and make compliant, comprehensive and correct disclosure in 2018 semi-annual reports.
Thirdly, doing well in in-process control. During the disclosure of 8 semi-annual reports, SZSE has urged listed companies to check whether they leave out the information that should be made public but kept private and requested them to make timely supplement or correction to/of the omitted or wrong disclosure.
Fourthly, strengthening post-mortem supervision. Timely supervision measures are taken against any environmental disclosure violations found in the post-mortem review of 2018 semi-annual reports.
Through the closed loop of reminders of compliant disclosure before events, urge of supplement and correction midst events and timely measures after events, SZSE has driven listed companies to strictly follow the rules on environmental disclosure. In this way, the authenticity, accuracy, integrity and timeliness of information disclosure is ensured, which delivers significant improvement in disclosure quality.
Greater efforts in market services: “going-out” training and “bringing-in” seminars go hand in hand
To assist interested listed units in doing a good job in environmental disclosure, during the disclosure of 2018 semi-annual reports, SZSE held special pilot training on disclosing environmental information to the companies of some key pollution industries and regions, helping the companies and interested personnel get familiar with disclosure requirements and know about the liabilities of breach. After the training, listed companies has voluntarily conducted self-check on their disclosure and certain enterprises on that evening directly announced the administrative penalties they recently received and made supplement and/or correction of the disclosed 2018 semi-annual reports.
Moreover, to facilitate public companies to better perform the disclosure obligations on environment, social responsibility and corporate governance (hereinafter referred to as “ESG”) and further enhance the effectiveness and comprehensiveness of disclosure, SZSE drafted ESG information disclosure guidance and convened three opinion solicitation seminars so that it could listen to their voices face to face and seriously study and perfect the ESG disclosure guidance. In addition, SZSE invited some companies to compile an ESG report according to the exposure draft of guidance so as to propose improvement suggestions and increase serviceability of the guidance.
An SZSE officer expressed that after the effective urge and active guide given, the amount of SZSE-listed companies disclosing environmental information increases apparently, the disclosure content gets richer, the disclosure activeness highly improves, and the sense of responsibility in ecological civilization building participation furthers, which steadily brings the disclosure quality to a new level. SZSE will keep guiding listed companies to perform timely and accurate disclosure obligation and encouraging them in playing an exemplary role in practicing ecological environment protection and other social responsibilities, thus driving them to contribute to the building of a beautiful China.
