【ESG Column】China Securities 100 Index Components CSR Reports overview in 2019
In this article, taking China Securities 100 Index Components for examples, we will introduce what CSR Reports look like to you.
China Securities 100 Index Components contain companies that have huge value and are the most influential in the market. In terms of either the proportion of issued reports or the overall quality of reports, their CSR reports are showing the trends of CSR disclosure of A share listed companies. According to Choice, since 2019, out of China Securities 100 Index Components, 93 companies have released CSR reports 2018.
Finance and Manufacture industries account for the majority
93 companies that have issued reports cover 12 industries, including Finance (33), and Manufacture (23), which are accounting for 60% of the total number. Others are Transportation, Mining, Warehousing, Construction, etc.
State owned enterprises account for the majority
From the point of view of company attributes, there are 37 central enterprises and their subordinate companies, 36 local state-owned enterprises, 15 private enterprises and 7 Chinese-foreign joint ventures.
The company is concentrated in Beijing and Guangdong
The company in concentrated in eastern area, few settled in western and middle area. Among them, there are 30 enterprises located in Beijing while 20 in Guangdong.
Reports are mainly named as “Social Responsibility Report”
From the name of reports, there are 76 enterprises titling their report Social Responsibility Report, 8 enterprises titling Sustainable Development Report, and 9 enterprises titling ESG Reports.
Most of the report pages are between 50-100
79 report pages are within 100, while 14 report pages are over 100. The largest number of report pages is 153, and the report comes from Agricultural Bank. The least number of report pages is 9, from Focus Media.
Most reports refer to GRI framework
90% of companies refer to related guidance when they were writing reports. The most widely used guidance is issued by exchange institutes. There are 69 listed companies in Shanghai and 24 listed companies in Shenzhen. Among 69 listed companies in Shanghai, there are 55 companies refer to CSR guidance issued by Shanghai Stock Exchange. While among 24 listed companies in Shenzhen, there are 18 companies refer to CSR guidance issued by Shenzhen Stock Exchange.
Nearly 70% of companies refer to the most popular GRI framework. Others refer to CASS-CSR, ISO 26000, GB/T-36001-2015, etc.
Besides, some companies will refer to industrial report guidance. For example, some banks will refer to China Banking Financial Institutions from China Banking Association, Opinions on Strengthening the Social Responsibility of Banking and Financial Institutions from Bank Insurance Regulatory Commission. Some steel companies refer to Sustainability Indicator Reporting Guide issued by Worldsteel in 2017.
Some companies refer to guidance issued by local government and industry association. For example, Wanker located in Shenzhen referred to Guidance on social responsibility of real estate enterprises in Guangdong Province. Shaanxi coal industry refer to Guide to social responsibility of industrial enterprises in Shaanxi Province issued by Shanxi Government.
In conclusion, the standardization of China Securities 100 Index Components CSR reports continues to improve, especially the proportion of companies referring to GRI framework has increase from 61% in 2018 to 70% in 2019. This standardization will help companies improve the materiality and quantity of ESG disclosure.
Statics mainly from Exchanges, Choice, CSR reports from companies
Substantive analysis of CSR Report of China Securities 100 index in 2018, SynTao.