ESG Value Accounting Report for Chinese Listed Companies released

On November 16, 2023, the China Association for Public Companies (CAPCO) released the ESG Value Accounting Report for Chinese Listed Companies (2023). GoldenBee Consulting, the Member Unit of its ESG Committee, provided technical support.

The cover of the ESG Value Accounting Report for Chinese Listed Companies (2023)

The uniqueness of this report has created a new approach for ESG evaluation of Chinese listed companies. Based on ESG value accounting methods, new indicators such as ESG net value and ESG value for risk and opportunity are adopted to assess A-share listed companies.

Mr. Yin Gefei, Founder of GoldenBee Consulting and the Chairman of Yibiao Digital Technology Co., Ltd.(OneESG), stated that "the number of listed companies that have positive net ESG impacts has been increasing year by year. Compared to the industrial average ESG net value, more than half of the listed companies have value exposure to ESG opportunities.

The monetization of ESG value can better integrate with corporate valuation models. Accordingly, it reflects the conductive impact on the future financial performance of the enterprise and providing more valuable reference information for investment. The assessment is conducted by using the Shanghai and Shenzhen 300 Index as the benchmark index, replacing market value with ESG net value per share and ESG risk opportunity value per share, replacing the component equity weight in the benchmark index, forming the Shanghai and Shenzhen 300 ESG Net Value Enhanced Index and the Shanghai and Shenzhen 300 ESG Risk Opportunity Value Enhanced Index. The backtesting data shows that the two enhanced indices have significant cumulative excess returns over the sample period compared to the Shanghai and Shenzhen 300 Index, with the maximum being 122.65% and 79.81%, respectively.

Mr. Yin Gefei at the Sustainable Development Conference for Chinese Listed Companies

Mr. Yin further pointed out that these data results demonstrate the positive performance of listed companies in terms of ESG value. He emphasized that the ESG value accounting is of great significance for enterprises and investors, not only helping to evaluate the corporate capability of sustainable development, but also providing important reference for investment decisions.

The data in this report is sourced from OneESG digital technology platform of GoldenBee Consulting.

Based on cloud computing, big data, and artificial intelligence technology, GoldenBee Consulting pioneered monetization of ESG factors, empowering data quality management with 20 years of ESG professional experience, and conducted ESG value accounting for all A-share listed companies and mainland companies listed in Hong Kong since 2017. Meanwhile, GoldenBee Consulting has developed an ESG investment research platform based on ESG monetization accounting data, providing a series of data application products and services such as ESG finance of the supply chain, bank customers’ ESG credit rating, academic research for ESG finance, ESG investment portfolio, and ESG report management for companies.

Since 2009, GoldenBee Consulting has established the "GoldenBee CSR Reporting Database in China" to evaluate the quality of social responsibility/ESG/sustainability reports released in China every year and publish research results. Six blue books "GoldenBee Research on Corporate Social Responsibility Reporting in China" have been published. Since 2012, GoldenBee Consulting has conducted research on monetization of social responsibility. In 2017, it released quantitative research results on the value of social responsibility in the responsibility competitiveness project, and continues to deepen research and services on natural capital accounting and capitals accounting.

The OneESG platform launched this time (website: https://oneesg.cn) demonstrates a technical upgrade of GoldenBee Consulting on the consulting experience of social responsibility and ESG management.

In the future, with the deepening implementation of the carbon peak and carbon neutrality strategy, the improvement of the sustainable financial policy ecosystem, and sustainable financial information disclosure rules represented by the ISSB standards will be introduced and applied. The ESG data foundation of enterprises will be further improved, and the methodology of the ESG value accounting system will also further mature. This series of developments will contribute to the formation of a world leading ESG evaluation system with Chinese characteristics, providing strong support for the development of global sustainable investment and financing.