China's power industry ESG development speed is fast, the development potential is great

According to A research report on the ESG system of the power industry released by the China Electric Power Union on the 16th, there are 5,079 A-share listed companies in China by the end of 2022, including 360 power-related listed companies, accounting for 7.1%. Among them, 73 power supply enterprises and 287 power equipment enterprises, accounting for 10.2% of the total market value. China's pow

From GUANCHA.CN

According to A research report on the ESG system of the power industry released by the China Electric Power Union on the 16th, there are 5,079 A-share listed companies in China by the end of 2022, including 360 power-related listed companies, accounting for 7.1%. Among them, 73 power supply enterprises and 287 power equipment enterprises, accounting for 10.2% of the total market value. China's power industry ESG development speed is fast, the development potential is great.

In terms of ESG policies, environmental sustainability, greater social value and optimal corporate governance advocated by ESG are highly consistent with domestic policies. In 2018, the China Securities Regulatory Commission issued the Code of Governance for Listed Companies, which for the first time fully proposed the concept of ESG and clarified relevant requirements. In May 2022, the SASAC document required listed companies held by central enterprises to strive to achieve full coverage of ESG reports by 2023, which promoted the rapid development of domestic ESG. The power industry is dominated by state-owned enterprises and policy-oriented, which has also accelerated the pace of ESG development.

In terms of ESG governance and information disclosure, this paper conducts a statistical analysis on 50 major listed electric power companies. At present, more than 60% of power enterprises have set up ESG-related leading bodies on the board of directors, nearly 80% of enterprises have formulated ESG-related strategic plans, and about 30% of enterprises have included ESG performance in the scope of management compensation assessment.

The concept of ESG has entered China for a short time. Generally speaking, the development of ESG in China is still in the initial stage, and most enterprises are in the transition stage from corporate social responsibility to ESG, but the development speed is fast and the development potential is great. As the precursor and foundation of the national economy, the power industry is an important pillar of the modern industrial system and the main force of tackling climate change and reducing carbon emission. It is imperative to actively practice the ESG concept and explore a path of ESG development that is both based on the present and oriented to the future.