Author
Assoc Prof Meiying Chen
Organisation/Institution
East China University of Political Science and Law
Country
CHINA
Panel
Corporate Law and Governance
Title
The Challenges of Sustainable Development for Chinese Listed Companies and Legislative Responses: Focusing on ESG Information Disclosure
Abstract
Many of today’s pressing environmental issues, including climate change, destruction of biodiversity and pollution, are clearly global. As the main and direct producer of ecological and environmental problems, companies especially listed companies, should play a meaningful role in green development. As a result, legal mechanisms such as the environmental, social, and governance (ESG) disclosure has been produced by states that aim to improve sustainable corporate governance. Some argue that the mandatory disclosure is necessary, while others argue that ESG disclosure should be voluntary. The research will provide an overview of the debate among legal academics – whether the voluntary disclosure or mandatory disclosure is better? Moreover, the research will focus on the comparative study of the current practices of ESG disclosures system among the European Union, Singapore, Japan, China, and the United States. Drawing on this comparative analysis, it seems that the mandatory disclosure for double materiality including both financial and non-financial consideration would increase the costs of business, while the mandatory disclosure for financial consideration is better. In conclusion, a more flexible model of ESG disclosures with the partnership between the public regulation and private governance is worth considering and accepting. more advisable. It specifically includes a multifaceted, the three-tiered framework under a “comply or explain” approach. The core ESG factors such as climate risk, corporate governance, and employee protection that are expected to be material to all listed companies in China should be disclosed. Industry-wide organizations could supplementing provide guidelines with more flexible, principle-based approach for sector-specific information where materiality is likely to vary widely across companies. For non-essential information, it defers to corporate managers’ own judgments on the scope and form of disclosure.
Biography
Dr. Meiying Chen is an Associate Professor of Law in the School of Economic Law at East China University of Political Science and Law (ECUPL). Prior to joining the ECUPL, Meiying Chen obtained her LLD on Comparative Corporate Law and Governance in Nagoya University Law School in Japan. Meiying Chen is a scholar in the field of corporate law and governance in China. In recent years, she has devoted herself to comparative study on the issues such as corporate compliance and corporate sustainable development. She has published several influential articles in China and Japan.
