Sustainability update: China takes major step in climate reporting
More and more countries are requiring companies to report clearly and honestly on their climate impact. This is not only happening in Europe via CSRD, regulations are also gaining momentum worldwide. One of the most important developments is that China is introducing a new climate reporting standard at the end of 2025. This step has major consequences, including for companies operating outside China.
China’s new standard aligns closely with global guidelines
The Chinese Ministry of Finance has launched Corporate Disclosure Standard No. 1, the country’s first official climate disclosure requirement. Remarkably, the structure aligns strongly with international GRI Standards, including the GRI 102 Climate Change Standard.
A key feature of China’s approach is the explicit use of double materiality, requiring companies to report on:
- Financial materiality: how climate change affects the company.
- Impact materiality: how the company affects climate, nature, and society.
That second part—impact—is gaining importance worldwide, especially under CSRD.
Curious how double materiality works? Read here more about double materiality.
Why this impacts businesses globally
Even if your business isn’t active in China, you are still connected to global supply chains. If your customers, suppliers, or partners rely on Chinese markets, they will soon be required to share reliable climate data. That means you may be asked to deliver:
- Your CO₂ footprint
- Information on risks and opportunities
- Insights into your sustainability strategy
Banks, investors and large buyers expect transparency as well. If your business is ready, you’re ahead of the competition.
Discover how your business scores here.
Companies using GRI are already ahead
A GRI assessment of 3,200 Chinese companies showed that 31% already refer to GRI Standards. The Hong Kong Stock Exchange expects that 80% of large listed companies will be GRI‑certified by 2025.
GRI makes it simple to identify and report on what truly matters.
Especially:
- GRI 3: Material topics
- GRI 102 Climate Change Standard
Climate and nature go hand in hand
Climate impact does not stand alone. Issues like biodiversity, land use, water stress and ecosystem health are deeply connected. That’s why GRI works closely with the Taskforce on Nature-related Financial Disclosures (TNFD).
This collaboration helps companies:
- Understand their impact on nature
- Identify risks and opportunities
- Create more complete and credible sustainability reports
What this means for your business
The world is moving toward full transparency. For your business, this means:
1. You’ll get more data requests from your supply chain
Large companies must report, and they will increasingly ask you for input.
2. Financiers expect reliable sustainability data
Especially banks, private equity and major buyers.
3. Starting early puts you in a stronger position
You benefit from:
- Insight into your CO₂ footprint
- Clear risk and opportunity insights
- Better strategic choices
- Stronger market positioning
More on building a sustainability strategy here.
Transparency is becoming the global norm
With its new climate disclosure standard, China is sending a strong global signal: transparency is becoming the norm. For businesses, this is the perfect moment to invest in impact reporting.
Starting now helps you build:
- trust
- clarity
- future readiness
- strategic strength
Ready for your next step?
Start your today and discover how your business performs!
