candycrushsagaandroid| Interpretation of the "Guidelines for Sustainable Development Reporting of Listed Companies" ③| Why does the term "new quality productivity" appear in "social information disclosure"?

Intro: Recently, the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange issued the guidelines for the report on the S...

Recently, the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange issued the guidelines for the report on the Sustainable Development of listed companies (hereinafter referred to as the guidelines), which will come into effect on May 1, 2024.

A reporter from the Daily Business News noted that in the "Social Information Disclosure" of Chapter 4 of the guidelines, new quality productivity is mentioned in the field of ESG for the first time-- enterprises are required to disclose "the role of scientific and technological innovation achievements and their applications in promoting the development of new quality productive forces." Previously, the new quality productivity was included in this year's government work report, and was listed as the top ten tasks in 2024.

What needs to be considered is, what is the endogenous relationship between new quality productivity and ESG? What is the effect of the former on ESG letter cloak? When enterprises disclose relevant information, how to quantify and evaluate the relevant content?

Xie an, director of Deloitte China Institute of Sustainable Development and Climate change, said in an interview with the Daily Business News that new quality productivity emphasizes innovation-driven, and sustainable development is inseparable from the leading role of innovation-driven in production development. We will build a more sustainable, efficient and equitable future economic system through scientific and technological innovation and structural adjustment. Therefore, the two have common goals and promote each other in promoting high-quality economic development, realizing green transformation, undertaking social responsibility and optimizing corporate governance.

As for the possible quantitative indicators of new quality productivity, Shi Yichen, senior academic adviser and chief economist of Zhongcai Green finger of the International Institute of Green Finance of the Central University of Finance and Economics, believes that enterprises start with the detailed disclosure of energy efficiency data. it can reflect and measure the level of new quality productivity of enterprises to a certain extent.

New quality productivity and ESG promote each other to promote high-quality development

"Social Information Disclosure" in Chapter 4 of the guidelines states, "the role of scientific and technological innovation achievements and their applications in promoting the development of new productive forces, as well as the impact on the economy, society, environment and stakeholders."

There is no doubt that the new quality productivity is the core driving force of the current high-quality economic development, which emphasizes taking scientific and technological innovation as the leading factor to promote industrial upgrading and economic structure optimization. This reflectsCandycrushsagaandroidBeyond the traditional productive forces, we not only pay attention to the innovative development of production factors, but also pay attention to the innovation of the combination of production factors, so as to give birth to new industries, new business type and new models. What is the internal relationship between it and ESG?

Specifically, the innovation emphasized by the new quality productivity plays a leading role, which means higher technological level, better quality, higher efficiency and stronger sustainability compared with the traditional productivity, which is consistent with the green and low-carbon production model advocated by E (environment) in ESG. In other words, the development of new quality productivity requires green and low-carbon development, harmonious symbiosis between man and nature, environmental protection is to protect productivity, to improve the environment is to develop productivity, so new quality and green can be said to be very close to each other. " Xie an further analyzed and said.

He also believes that new quality productivity needs the support of new production relations, which is consistent with the dimension of G (governance) in ESG from the point of view of optimizing corporate structure governance. Improve the level of governance for sustainable development, including the support and guarantee of E and S (social) dimensions, and promote a comprehensive green and low-carbon transformation of the economy by integrating environmental, social and governance factors. to meet the inherent requirements of new quality productive forces to promote high-quality development.

New quality productivity will have a profound impact on the labor market

The importance of new quality productivity runs through many dimensions of E, S and G. why does the Guide disclose it under the social dimension?

Xie an believes that in the "Social Information Disclosure" of Chapter 4 of the guidelines, the issues involved in rural revitalization, social contribution, innovation-driven, and ethics of science and technology are all closely related to China's people's livelihood and social development, and are ESG topics with Chinese characteristics. "Scientific and technological innovation is not just technological change, but putting new quality productive forces in this chapter also emphasizes that scientific and technological innovation can also play an important role in promoting social progress and achieving sustainable development. This shows that China attaches importance to scientific and technological innovation and the ESG system with Chinese characteristics, which can better respond to the national strategy and strengthen the practice and promotion of the concept of ESG. "

Moreover, from the perspective of integrity, Xie an believes that the inclusion of scientific and technological innovation as a separate issue in social information disclosure is also conducive to the integrity of information disclosure, so that investors and stakeholders can more accurately evaluate the ESG performance of enterprises. In his view, innovation drive is closely related to social well-being, and putting it in the social information chapter will help to improve people's livelihood and social well-being on the one hand, and enhance public awareness of the concept of ESG on the other hand, and promote the transmission of ESG value.

Xie an further analyzed that the development of new quality productive forces will bring about qualitative changes in workers, labor materials, labor objects and their optimal combination, and the demand for workers will also be correspondingly transformed into the demand for new types of talents. pay attention to production relations and workers to improve total factor productivity. "the current global market, social demand and government policies are all promoting a comprehensive green and low-carbon transformation. Due to the acceleration of climate governance, it has caused unfairness in different regions, different industries and job markets. Therefore, the concept of 'just transformation' related to employment, people's livelihood and social equality will receive widespread attention. "

Data from Deloitte's Employment vulnerability Index in 2021 show that "agriculture, traditional energy, heavy industry and manufacturing, transport and construction" are the sectors most vulnerable to climate change and net zero transition. About 800m jobs around the world are extremely vulnerable, particularly in the Asia-Pacific region, where more than 40 per cent of the workforce is currently engaged in these "vulnerable" industries.

At the same time, Deloitte believes that if the transformation strategy is appropriate, the global climate net zero transition is expected to promote stronger economic growth and create more jobs.

The quantitative disclosure of new quality productivity can start with energy efficiency data.

According to the guidelines, the achievements of scientific and technological innovation are closely related to new quality productive forces. So, which specific elements or indicators belong to the disclosure category of new quality productivity? Apart from scientific and technological innovation, what other issues or dimensions may be related to new quality productivity?

Shi Yichen, senior academic adviser and chief economist of the International Institute of Green Finance of the Central University of Finance and Economics, told the Daily Economic News that from the previous supply-side reform and high-quality development to the current new quality productive forces, in fact, the connotation is the same, that is, we hope that the input-output ratio proposed by economics will be improved, or the marginal output of production factors will be more and more demanding. "for example, the consumption of one kilowatt-hour of electricity or one ton of water corresponds to more output value. And now that there is carbon trading, one ton of carbon emissions also means higher output. "

Shi Yichen believes that from the perspective of ESG, green and low-carbon technology is a form of new productivity, which can improve the input-output ratio of enterprises and can be directly reflected in performance and product gross profit. In addition, increasing employee welfare, strengthening the sustainable management of suppliers and the whole management process of the company all belong to the category of improving the new quality and productivity of the enterprise to some extent.

For enterprises, it should not be too difficult to understand and master the definition and connotation of new quality productivity, as well as its importance in ESG, but how to quantify and evaluate the disclosure in the ESG report will face some challenges.

Shi Yichen believes that taking ESG as the foothold and speaking with data is a better way to achieve quantitative evaluation of new quality productivity. One of the most direct and easily available data is the energy efficiency of enterprises. "the improvement of energy efficiency itself is part of the new quality productivity: when an enterprise succeeds in reducing energy consumption and improving efficiency, it means that its productivity has also increased."

In addition to energy efficiency data, Shi Yichen also believes that all the production factors of an enterprise, such as machinery and equipment, manpower, AI, data assets, and so on, can be regarded as quantitative indicators of new quality productivity.

Daily economic news

candycrushsagaandroid| Interpretation of the "Guidelines for Sustainable Development Reporting of Listed Companies" ③| Why does the term "new quality productivity" appear in "social information disclosure"?

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