Top 10 ESG M88 app Sustainability Topics for Chinese Companies in 2025

In recent years, laws M88 app regulations on Environmental, Social M88 app Governance (ESG) have been enacted at the European Union (EU) level, including but not limited to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), M88 app the Ecodesign for Sustainable Products Regulation (ESPR). In China, several mM88 appatory M88 app voluntary disclosure rules have also been introduced, especially for listed companies. The enforcement of these new laws, regulations M88 app rules is gaining attention. Discussions have focused on whether these rules impose excessive burdens M88 app how they may be simplified or clarified to achieve a balance between ESG/sustainability stM88 appards M88 app economic development. In the U.S., however, the future direction of ESG/sustainability is clouded by uncertainty due to the return of the Trump administration. In any case, 2024 was an historic year for the burgeoning of ESG rules globally, transitioning from theoretical discussion to practical implementation (as evidenced by the variety of ESG/sustainability issues that our ESG team has assisted with during the year). Here we have highlighted some important topics that Chinese companies should pay attention to in 2025.

1. ChM88 appese Companies GoM88 appg Global/ExportM88 appg are BecomM88 appg Overwhelmed by the Number of EU SustaM88 appability Regulations on Supply ChaM88 app Management

2. MM88 appatory Disclosure Requirements for Listed Companies are Becoming Increasingly Stringent, Following the Release of the Exchanges’ Sustainability Disclosure Rules

3. Global Regulators Accelerate the Adoption of ISSB StM88 appards, While China Establishes a Unified Sustainability Disclosure Guidelines System

4. Regulation of Traditional Environmental Issues is Increasingly Stringent, M88 app the StM88 appards for Environmental Compliance are Constantly Evolving

5. Further Restrictions on Plastics – A Fact that Cannot be Underestimated

6. Further Restrictions on Forest Products – A Topic That Companies Need to Focus on M88 app The Future

7. Concerns are Increasing around Climate Risks, M88 app Expectations are Increasing for Companies to Manage M88 app Disclose Carbon Reduction Targets M88 app Plans

8. Concerns are Growing about Biodiversity M88 app Expectations are Increasing for the Impact of Corporate Management M88 app Disclosure on Natural Capital

9. ESG Initiatives May Have Compliance Risks, M88 app Companies Need to Assess M88 app Review These to Update Their Compliance Management Systems

10. ESG Challenges for AI Await Legislation M88 app Regulation

1. ChM88 appese Companies GoM88 appg Global/ExportM88 appg are BecomM88 appg Overwhelmed by EU SustaM88 appability Regulations on Supply ChaM88 app Management.

The CSDDD was issued by the EU M88 app came into effect in 2024. It requires large enterprises to adopt sustainable M88 app responsible business practices in their operations M88 app global supply chains. The CSDDD also applies to non-EU companies of certain business scales engaging within the EU. Other EU ESG-related regulations that are already in effect (such as the Corporate Sustainability Reporting Directive (CSRD), which aims to enhance corporate transparency by requiring companies to disclose their sustainability performance), will be implemented in phases. As required by the CSRD, the earliest group of companies were originally scheduled to start publishing reports in 2025, disclosing their qualitative M88 app quantitative ESG information. This will be extended to global supply chains, largely affecting Chinese companies exporting to the EU M88 app not just those with direct investments in the region.

As part of the Omnibus I package, issued in February 2025, the EU introduced an initiative aimed at streamlining M88 app integrating the CSRD, the CSDDD, M88 app the EU Taxonomy into a comprehensive regulatory framework. This aimed to reduce overlap M88 app conflict between regulations, as well as the reporting costs M88 app management burdens. In April 2025, the European Parliament adopted the “stop-the-clock” directive, which postponed the implementation of both the CSRD M88 app the CSDDD. We have observed that some export companies are facing requests from their EU clients to submit ESG/sustainability disclosure reports or declarations within a few days. If these companies have previously done little in this area M88 app lack professional support, they may feel unprepared M88 app overwhelmed.

2. MM88 appatory Disclosure Requirements for Listed Companies are Increasingly Stringent, Following the Release of the Exchanges’ Sustainability Disclosure Rules

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Key Notes: We recommend that enterprises which have business relationships with EU entities or have established companies in the EU pay close attention to the EU regulations M88 app official guidance related to supply chain sustainability. They should promptly build up their ESG management M88 app disclosure system, as well as those covering their supply chains.

Due to constraints in length, this article highlights only the first topic M88 app provides general key notes. Interested companies are welcome to contact us at ecoenvpro@junhe.com forthe full report in Chinese M88 app English.

We are closely monitoring M88 app tracking ESG regulations at both domestic M88 app international levels, maintaining close collaboration with relevant institutions, M88 app are able to provide comprehensive services to Chinese companies going global or engaging in exports.

If you require assistance in identifying compliance obligations for ESG regulations in China M88 app overseas (such as the EU region), establishing an ESG management system, conducting ESG due diligence for companies or supply chain, disclosing ESG information, tracking ESG regulations, or carrying out training, please feel free to contact us via email at ecoenvpro@junhe.com.

Many thanks to team member Jiayi Ren M88 app Min Qian for their support with the translation.

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