(Yicai) July 2 -- The majority of companies listed on the Shanghai Stock Exchange published their efforts in environmental, social, and governance last year as firms are becoming increasingly aware of the importance of sustainability.

Nearly 1,150 Shanghai-listed firms disclosed ESG reports for last year, almost 51 percent of the total, up from 47 percent, according to public data. All of the constituents of the SSE 50 Index and STAR 50 Index revealed such reports. The same was true for 93 percent of the companies in the SSE 180 Index.

Almost 790 enterprises have disclosed ESG reports for more than three straight years, and over 520 firms have done so for more than five consecutive years, while the group of more than a decade of ESG reporting consists of over 310 firms.

The shift shows how the market recognizes the changing paradigm of value creation and risk management. Among the nearly 1,150 firms, almost 130 used third-party organizations to verify their ESG reports, enhancing credibility.

Moreover, companies listed on the SSE are integrating ESG with their governance. More than 800 of them trust their chairpersons to lead decision-making on matters linked to sustainable development while over 600 companies have established internal structures to address such risks and opportunities.

Technological innovation is a key focus for firms to advance green development. Almost 1,900 SSE-listed companies established mechanisms for environmental protection, making up 83 percent of the total, investing nearly CNY290 billion (USD39.9 billion) in the cause. Moreover, more than 810 firms disclosed their carbon emissions in their annual or ESG reports, while almost 1,600 companies revealed their progress in reducing carbon emissions.

Another key aspect of ESG is social initiatives such as poverty alleviation and rural revitalization. Nearly 1,180 SSE-listed companies disclosed such social pursuits, with a total investment of more than CNY100 billion.

Editor: Emmi Laine