ESG (Environmental environment, social society and governance corporate governance) with “green” and “low carbon” as important performance is becoming a new business card of A-share companies. Under the “double carbon” goal, the “high-voltage line” of environmental protection supervision has long been tightened, and the mandatory disclosure of environmental information of great concern has arrived as scheduled.
Since February 8, the administrative measures for the legal disclosure of enterprise environmental information and the standards for the format of legal disclosure of enterprise environmental information (hereinafter referred to as the standards) issued by the Ministry of ecology and environment have been officially implemented, officially opening the curtain of mandatory disclosure of environmental information of listed companies. Liu Chunlei, founder of Qingyue environmental protection, said bluntly in an earlier interview with a reporter from Shanghai Securities News: “the main significance of the standards lies in ‘refinement and operability’, and environmental information disclosure is expected to be more transparent and credible, which is also promoted in conjunction with the full implementation of the registration system.”
At present, the environmental information disclosure of listed companies is not optimistic. In December 2021, the evaluation results of the environmental responsibility information disclosure evaluation report of China’s listed companies (2020) (hereinafter referred to as “report 2020”) released by China Environmental Records Association and Beijing University of chemical technology showed that in 2020, there were 4418 listed companies in Shanghai and Shenzhen, and 1135 enterprises had issued environmental responsibility information related reports, accounting for only 25.69%.
According to incomplete statistics of Shanghai Securities News, since 2019, more than 80 A-share listed companies have publicly disclosed environmental punishment information. The reporter found that water pollution and air pollution are high incidence areas, and the problems of solid waste pollution and environmental impact assessment violations are gradually exposed; The number of enterprises that disclose punishment information decreased significantly in 2020 and remained low in 2021; Taking the punishment as a reference, the severity of environmental violations by enterprises has decreased
“On the whole, enterprises’ awareness of environmental protection is obviously improving.” Industry insiders told reporters, “under the mandatory environmental information disclosure, if we can still maintain this situation, it can really show that enterprises have done a good job in environmental protection!”
Exposure of solid waste, environmental impact assessment and other problems
In terms of the types of “environmental protection tickets” disclosed by listed companies, the proportion of water pollution and air pollution is still high, but problems such as environmental assessment violations and solid waste pollution are also increasingly exposed.
According to the data, in 2021, four companies issued fines for violation of environmental impact assessment, including Ningxia Orient Tantalum Industry Co.Ltd(000962) , Penyao Environmental Protection Co.Ltd(300664) , Yunnan Copper Co.Ltd(000878) , Anhui Liuguo Chemical Co.Ltd(600470) ; Fines issued for improper disposal of solid and hazardous wastes include Ningxia Orient Tantalum Industry Co.Ltd(000962) , Shanghai Smith Adhesive New Material Co.Ltd(603683) , Guangdong Vtr Bio-Tech Co.Ltd(300381) , Beijing Water Business Doctor Co.Ltd(300055) , Create Technology & Science Co.Ltd(000551) , Nanjing Chemical Fibre Co.Ltd(600889) and other six enterprises. The two data are 2 and 1 respectively in 2020.
In May 2021, Nanjing Chemical Fibre Co.Ltd(600889) disclosed “the first solid waste ticket in the year”. According to the announcement, Jiangsu Jinling Cellulose Fiber Co., Ltd., a subsidiary of the company, was ordered to make corrections by Yancheng ecological environment bureau because there were waste silk and waste filter cloth stacked in the open air in the plant and the “three prevention measures” were not in place; In July 2021, Create Technology & Science Co.Ltd(000551) disclosed that Suzhou Yiguang Instrument Co., Ltd., a subsidiary of the company, was publicly fined 238400 yuan by the ecological environment bureau of Suzhou Industrial Park for failing to meet the requirements of the pollution control standard for hazardous waste storage because the place where saponified liquid (waste emulsion) was stored failed to meet the requirements; In September 2021, Ningxia Orient Tantalum Industry Co.Ltd(000962) disclosed that it was publicly fined 110000 yuan by Shizuishan Ecological Environment Bureau for illegally stacking empty barrels containing methyl isobutyl ketone
“Now, the exposure of solid waste and hazardous waste is the same as the early air and water pollution. It seems to be a small matter, but it actually involves a wide range, and even has a chain reaction. Water, air and soil are polluted.” The aforementioned insiders said, “any link of environmental governance is very important.”
It is worth noting that, in terms of announcement disclosure, many enterprises were punished more than once in 2021, and there was more than one violation. For example, Anhui Liuguo Chemical Co.Ltd(600470) has been punished successively for violation of environmental assessment, water pollution and air pollution, Ningxia Orient Tantalum Industry Co.Ltd(000962) has been punished successively for violation of environmental assessment and solid waste pollution.
As an enterprise of ecological protection and environmental governance, Penyao Environmental Protection Co.Ltd(300664) , many of its companies were punished for environmental assessment violations and air pollution, and Wuxi Huaguang Environment & Energy Group Co.Ltd(600475) companies were also punished for air pollution and water pollution.
In terms of punishment intensity, Heilongjiang Interchina Water Treatment Co.Ltd(600187) was fined 9.23 million yuan for water pollution of its junior high school (Qinhuangdao) sewage treatment Co., Ltd., which became the largest amount of fines in 2021.
Mandatory tightening of “green string”
The guidelines once again tighten the “string” of green development of listed companies, and also provide policy basis and support for environmental information disclosure, including enterprise carbon emission information.
According to the requirements of “ecological and environmental protection information related to investment and financing” in the annual environmental information disclosure report of enterprises, if a listed company finances by issuing stocks, bonds, depositary receipts, medium-term notes, short-term financing bonds, ultra short-term financing bonds, asset securitization, bank loans and other forms, it shall disclose the financing form, amount, investment direction and other information, As well as the relevant information on climate change and ecological environment protection of the financed projects. This means that “the information related to the response to climate change and ecological and environmental protection of the invested projects” has become a “necessary option” for the environmental information disclosure of listed companies.
According to the investigation, in the refinancing feedback documents of listed companies previously disclosed by the CSRC, the raised investment projects of some listed companies have been questioned by the regulatory authorities for environmental related information. For example, in the refinancing feedback of Hangzhou Huawang New Material Technology Co.Ltd(605377) , the regulatory authorities asked: whether the raised investment project has obtained the environmental impact assessment reply from the competent ecological and environmental department at the corresponding level in accordance with the requirements of the environmental impact assessment law and relevant regulations; Whether the issuer fulfills the replacement requirements of equal amount or reduction of coal that should be fulfilled, and whether the raised investment project needs to obtain a pollutant discharge permit, etc.
In terms of the fixed increase plan disclosed by listed companies, when the announcement mentions the application for approval of raised investment projects, it may be related to whether the EIA report has been obtained, but there is no “relevant information on the response to climate change and ecological environment protection of the invested projects”. According to the standards, such information will be added as legally disclosed items in the annual environmental information report of the enterprise.
In fact, the “mandatory disclosure” of environmental information has long been the general trend in the industry, and the policy is becoming increasingly clear. Since 2003, the securities regulatory authorities have required listed companies in heavy pollution industries to disclose environmental information. Since then, various regulatory authorities and exchanges have formulated corresponding information disclosure guidelines. In 2016, the people’s Bank of China and other seven departments jointly issued the guidance on building a green financial system, which clearly proposed to “gradually establish and improve the mandatory environmental information disclosure system for listed companies and bond issuing enterprises”.
“The implementation of the standards means that mandatory disclosure has to be made.” In Liu Chunlei’s view, the standards have detailed and clear provisions on the contents and formats of annual environmental information disclosure reports and temporary environmental information disclosure reports, aiming at the old problem of “authenticity” of environmental information disclosure.
Carbon emissions, which have attracted much attention, are included in the summary of key environmental information. However, at present, only key greenhouse gas emission units that are included in the quota management of the carbon emission trading market are required to disclose.
The aforementioned insiders told reporters that with the continuous improvement and activity of the carbon trading market, carbon emissions will become one of the important indicators for the green development of enterprises, and it is highly possible to gradually enter the scope of disclosure.
“Combination fist” brightens ESG’s new business card
“It is hoped that by evaluating the level of environmental responsibility information disclosure, enterprises will enhance their awareness of ecological and environmental protection, improve their values of ecological and environmental protection, and promote the construction of the self-discipline system of ecological and environmental protection of the whole society.” According to the report 2020.
Although the overall disclosure situation is not objective, the report 2020 shows that the disclosure level of environmental responsibility information of listed companies has improved steadily, and the disclosure index reached a new high. The index in 2020 was 37.35, an increase of 11.7% compared with 2019, the highest increase over the years.
“The red line of environmental protection is insurmountable” is becoming a consensus of all parties, and ESG is increasingly becoming a new business card of listed companies. The reporter saw the first batch of “listed enterprises” in Guangzhou Environmental Information Technology Bureau, and the first batch of “listed enterprises” in Guangzhou Environmental Information Technology Bureau. “This’ small ‘brand has a high gold content.” Company staff said.
It is understood that “Guangzhou cleaner production enterprises” need to go through the written review and on-site acceptance of the technical expert group, and the certificate is valid for five years. If there are environmental violations, it may be revoked, and a new round of cleaner production audit and application for acceptance need to be carried out before the expiration. This means that enterprises can only win this honor if they run through cleaner production. Such “advanced cleaner production enterprises” are being certified and selected in Zhejiang, Hunan and other provinces.
In the view of Shenzhen Kinwong Electronic Co.Ltd(603228) Chairman Liu Shaobai, the so-called “manufacturing industrial enterprises must be high pollution” is a narrow prejudice. In Shenzhen Kinwong Electronic Co.Ltd(603228) , the investment of environmental protection facilities in the industrial park where each production base is located accounts for 20% to 30% of the total construction funds; The discharge indicators of wastewater and waste gas in the park are far lower than the requirements of national standards.
“At present, there are no technical problems in the treatment of industrial wastewater and waste gas. The key lies in the enterprise’s awareness of environmental protection and the investment and operation of real gold and silver in environmental protection facilities.” Liu Shaobai said frankly.
According to Hu Wei, chairman of Shenzhen Expressway Company Limited(600548) , ESG is an internal factor for the high-quality development of enterprises, especially listed companies. ESG provides a standard for the high-quality development of listed companies, which is expected to change the past phenomenon of focusing on economic interests rather than social values.
At the same time, in the context of mandatory disclosure by ESG, socially responsible investment, which has matured in the west, is being more widely accepted, recognized and implemented in China.
