Improving Climate Transparency in China's Capital Markets and Financial System

CDP is a charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. With the co-announcement with IFRS Foundation during COP27, CDP questionnaire will incorporate ISSB climate-related standard by 2024, and it is estimated that over 18,700 companies’ disclosure practices will be aligned with the new global standard then. CDP entered China market since 2012, and has a great engagement base with listed companies and financial institutions. Though TCFD recommendation is endorsed by the central bank, China is moving slowly in introducing mandatory disclosure standards and requirement in climate and wider sustainability area. However, UK has been taking a leading role in developing and adopting the best sustainability disclosure standards in the past a few years. There is a lot of experience the UK could share with counterparties in China, which would not only improve the bilateral communication and relationship between the two countries, but also further improve the market transparency in China and bring about business benefit to UK private sectors.