According to the Suggestions of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development, it is proposed to accelerate the comprehensive green transformation of economi

With five years left to achieve the 2030 carbon peak goal, the green transformation has become an irreversible trend of the times. During the 15th Five-Year Plan period, what are the key directions to promote China's ESG development? How do we evalua

During the ESG China Innovation Summit (2025) and the First ESG International Expo co-hosted by the China Enterprise Reform and Development Research Association and Shougang Group Corporation, in relation to the aforementioned issues, Peng Huagang, t

He told the reporters from 21st Century Business Review that the fundamental logic of ESG is that businesses should not only focus on profits, but also consider the impacts on stakeholders such as government, communities, employees, partners, and sup

Central Enterprises' ESG Practice Needs to Implement "Whole-Chain Innovation"

What are the key directions for promoting China's ESG development during the "15th Five-Year Plan" period?

Peng Huagang: Beautiful China construction, the dual carbon goal, and new development concepts are all core topics of ESG. To promote ESG, enterprises must first fully understand and thoroughly study the spirit of the Central Committee, comprehensive

Finally, it is necessary to consolidate the responsibility of all employees. ESG is not only a top-down project but also an initiative involving all employees. ESG can only be truly implemented with the participation of everyone.

21st Century: What are the uniqueness and significance of the ESG practice of central enterprises compared with other enterprises?

Peng Huagang: Central and state-owned enterprises are important supports for implementing national strategies. For all enterprises, they need to actively learn and implement the macro requirements of the party and state, but for central enterprises,

The 20th Fourth Plenary Session of the Party has passed a resolution on the 15th Five-Year Plan for economic and social development. New development concepts, high-quality development, new productive forces, beautiful China construction, rural revita

In addition, central enterprises naturally play a leading role in social responsibility. State-owned enterprises and central enterprises have the state as their shareholder, and the state represents the people. It is their natural responsibility to b

This annual meeting proposes the concept of full-chain innovation. We believe that central enterprises, large enterprises, and industry leaders should not only do well in ESG work but also drive the industry chain and ecosystem to jointly practice ES

Integrate ESG into the enterprise internal operation system

How does China's ESG standard align with international standards? How can Chinese companies play a role in the development of global ESG standards?

Peng Huagang: In recent years, all types of businesses have greatly improved their understanding, recognition, and practices in ESG. ESG is not a Western language, but an international one. ESG was proposed by the United Nations to promote sustainabl

The fundamental logic of ESG is that businesses should not only focus on profits but also consider the impacts on government, communities, employees, partners, suppliers, and other stakeholders during their operations. Based on this, we should thorou

International standards often start with information disclosure, such as more disclosure, more action, and evaluations of the same company by different rating agencies may vary. For example, MSCI focuses more on financial importance, that is, the imp

The underlying logic of these differing perspectives is consistent, all aimed at promoting sustainable development. Businesses cannot solely focus on profits; they must also consider the impact on all stakeholders during operations, including the gov

Based on this logic, the path for China's ESG to connect with the international community is quite clear.

The first step is to have a thorough understanding of both ends. It is necessary to delve into the international standards, such as the International Sustainable Benchmarking Council (ISSB), understand their core consensus, and also grasp the local n

The second step is to build a local standard system. In late 2024, the Ministry of Finance, jointly with nine other ministries and commissions, issued the "Enterprise Sustainable Disclosure Standards - Basic Standards", which are based on the Interna

The third step is to dynamically optimize the evaluation system. For example, when we updated the evaluation indicators for ESG disclosure by Chinese listed companies this year, we significantly increased the proportion of "supply chain ESG managemen

Finally, I want to emphasize that doing ESG cannot be "biased". It is not a tool for companies to whitewash their image, nor is it a "stepping stone" for financing. It is to promote sustainable economic and social development by better fulfilling the

21st Century: How do you evaluate the green transformation of China's corporate supply chain and the development of ESG? If the 'main player' in the supply chain wants to drive the improvement of the entire chain's ESG rating, how should they proceed

Peng Huagang: The core of the whole chain is that enterprises are expected to not only do well in ESG themselves, but also promote ESG practices in the industrial chain, supply chain, and value chain. Currently, many companies' purchasing systems are

There are many good cases in China, such as Lenovo holding a supplier conference every year to promote suppliers to practice ESG; China Mobile is also transmitting the concept of ESG to suppliers through the supplier conference. Specifically, enterpr

21st Century: You once said in ESG practice, "big enterprises have the questionnaires for big enterprises, while small and medium-sized enterprises have their own topics." In the current economic environment, is ESG still important for SMEs? Can ESG

Peng Huagang: It is very important, for two reasons: first, small and medium-sized enterprises are an important force in promoting sustainable development, with a large number and wide range; second, in the future, industry chains and supply chains w

Small and medium-sized enterprises do face difficulties. With small operating scales and weak risk resistance, they also lack ESG resources. If they invest a lot of effort in ESG, the cost will be too high. Therefore, our approach is to empower the c

The platform will lower the ESG threshold, and enterprises only need to pay a low cost. Although answering questions requires effort, this process is itself a process of improving ESG capabilities. The ESG practice of small and medium-sized enterpris