Action Plan for Environmental, Social, and Governance (ESG) Development (2025–2027)

As a key birthplace and early adopter of Xi Jinping Thought on Ecological Civilization, Xiamen has received many international and national titles, including the UN-Habitat Scroll of Honour Award, International Awards for International Garden City, Biodiversity Charming City, National Ecological Civilization Construction Demonstration Zone, National Ecological City, National Ecological Garden City, and top rankings in the six consecutive evaluations of National Excellence in Social Ethics. In response to the dual imperatives of economic globalization and sustainable development in the contemporary era, this Action Plan is formulated to: enhance Xiamen's Environmental, and Social Governance (ESG) capacity building; elevate its city branding; establish a new paradigm for industrial green transition; forge fresh competitive edges in global collaboration; and unleash innovative drivers for high-quality development. The city works to formulate the “124” ESG Development Framework: (1) One Goal: position Xiamen as a nationally leading city in ESG development; (2) Two Systems: an ESG demonstration and best practices system, and an ESG market ecosystem; and (3) Four Hubs: an ESG green industry hub, an ESG professional services hub, an ESG theoretical innovation hub, and an ESG talent hub.

Objectives

By 2027, we aim to substantially raise public awareness and social recognition of ESG across the city, improve the ESG policy framework step by step, accelerate the establishment of an ESG ecosystem, and significantly improve disclosure rates. We will establish two ESG pilot zones within Xiamen Area of China (Fujian) Pilot Free Trade Zone and Xiamen Torch Development Zone for High Technology Industries. A high-level ESG think tank cluster will be developed, with Xiamen National Accounting Institute as its core. We will fully leverage our legislative authority as a special economic zone to advance ESG-related institutional development. We will attract and nurture a group of reputable ESG professional service providers, expand the coverage of ESG assurance services, improve ESG rating levels, advance the standardization, and enhance capabilities of ESG-related services. A collaborative framework will be established to facilitate active participation from government departments, enterprises, research institutions, and social organizations. Through these efforts, we strive to establish Xiamen as a nationally leading city in ESG development.

II. Key Initiatives

1. Build an ESG Demonstration and Best Practices System

Improve Top-Down ESG Management Systems within Enterprises. We will guide enterprises to incorporate ESG principles into their development strategies, management systems, and corporate culture. This includes establishing dedicated ESG governance structures, defining performance targets and setting up metrics systems. These measures aim to enhance organizational resilience against external challenges while systematically strengthening their sustainable development capacities. We will encourage enterprises to adopt ESG digitalization initiatives by leveraging big data and artificial intelligence (AI) technologies. Efforts will focus on enhancing data collection and analytical capabilities in areas including green development, social contributions, labor rights protection, customer and supplier relationships, technological innovation, and intellectual property protection. This will facilitate the establishment of smart and sustainable development models, ultimately creating replicable and scalable application scenarios and exemplary best practices.

Encourage State-Owned Enterprises and Listed Companies to Spearhead the ESG Implementation. We will establish an ESG information disclosure mechanism for state-owned enterprises and support local listed companies in complying with ESG disclosure requirements of their respective stock exchanges. These measures will align with both domestic and international standards, including the Corporate Sustainability Disclosure Standards issued by China’s Ministry of Finance and the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), to improve the coverage and quality of ESG disclosures on an on-going basis. We will continuously strengthen the ESG capacity building for state-owned enterprises and listed companies, facilitate their participation in domestic and international ESG ratings as well as international exchanges, and promote the inclusion of more enterprises in rankings such as the “Central Enterprise ESG Pioneer 100 Index”.

Enhance ESG Capabilities of Foreign-Related Enterprises. We will leverage Xiamen's strengths in opening up to closely monitor international ESG development trends. By encouraging more foreign-related enterprises to benchmark against global industry leaders and adopt international best practices and methodologies, we urge these enterprises to thoroughly implement ESG principles and strengthen their ESG capacity building. We will empower them to proactively engage in green trade, pursue green investments, and execute green contracts in international markets. We will encourage foreign-invested enterprises in Xiamen to introduce advanced corporate ESG concepts and disclose the locally implemented practices in their corporate ESG reports. We further urge foreign-related enterprises to actively participate in global ESG forums and organizations, while fostering ESG knowledge-sharing among Xiamen-based foreign-related enterprises, thereby strengthening ESG capabilities and performance across their supply chain ecosystems.

Guide Private Enterprises to Actively Implement ESG Principles. We will provide guidance for private enterprises on adopting ESG principles, leveraging ESG practices to strengthen their long-term competitiveness and sustainable growth potential. We will support relevant institutions in developing a simplified ESG disclosure framework tailored to the characteristics of private enterprises. Private enterprises are encouraged to progressively integrate ESG into their daily operations, achieving balanced economic and social outcomes while enhancing their corporate competitiveness, risk resilience, brand reputation, and social impact.

Advance the Development of ESG Pilot Demonstration Zones. By releasing Xiamen’s ESG best-practice case studies and rankings, we will establish exemplary models for ESG implementation. Xiamen Area of China (Fujian) Pilot Free Trade Zone and Xiamen Torch Development Zone for High Technology Industries, building on their pioneering nature, will be developed into ESG pilot demonstration zones. These zones will fully align with both international and domestic ESG standards as well as with global trade rules. Through strengthened ESG-related policy support, we will advance ESG implementation in merchandise trade, service trade, digital trade, outbound investment cooperation, and zero-carbon industrial park development. By leveraging the zones' leading role, we will replicate successful practices citywide in a phased manner. We will enable all districts to capitalize on their distinctive strengths and industrial characteristics while encouraging local enterprises to adopt ESG practices, thereby elevating the ESG capabilities of the city as a whole.

2. Develop an ESG Market Ecosystem

Pilot the Development of ESG Association Standards and Sectoral Standards for Xiamen's Leading Industries. We will actively promote the practical application of the National Corporate Sustainability Disclosure Standards and support research institutions, service providers, industry associations, as well as social organizations in participating in domestic and international ESG disclosure, assurance, and the formulation of rating standards, thereby enhancing Xiamen's influence in shaping international and domestic ESG standard systems. Building upon international and national ESG standards, we will prioritize advancing industry-specific ESG standardization within the “4+4+6” modern industrial structure. This will be achieved by supporting leading enterprises and industry associations to develop sector-specific ESG corporate standards and association standards that align with the city's industrial structure, the scales of enterprises, and sector-specific characteristics. These standards will be replicated to form authoritative sectoral standards in a well-planned manner, driving forward standardization of ESG disclosure frameworks, assurance mechanisms, and rating systems.

Advocate for ESG Assurance Implementation. We will support consulting agencies and other professional service providers in intensifying research on international ESG assurance standards and enhancing their technical competencies in ESG assurance engagements. Enterprises with established ESG governance frameworks, including state-owned enterprises, listed companies, private enterprises, and foreign-related enterprises, are encouraged to engage independent, impartial, and reputable third-party institutions for assurance verification of the ESG information, thereby enhancing both the transparency metrics and credibility of corporate ESG disclosure mechanisms.

Advance Digitally-Enabled Carbon Management Platforms. We will strengthen the data foundation underpinning ESG disclosures through continued development of Xiamen's carbon footprint certification platform, and encourage enterprises to conduct product carbon footprint accounting and obtain professional certification. We will institutionalize carbon accounting and emissions management into corporate strategic and internal governance frameworks, requiring enterprises to establish comprehensive carbon emissions management mechanisms, optimize energy mix with measurable efficiency targets, adopt certified green technologies, and foster sustainable corporate cultures, enhance carbon reduction consciousness, and advance green and sustainable development.

Integrate Green Finance and ESG Practices. We will establish a green finance system that is in line with regional conditions, facilitative to low-carbon transition, and marked by diverse product-service offerings and robust orderly operations. Financial institutions and green finance-supported enterprises are encouraged to actively practice ESG. We shall step up disclosure of management systems, strategic roadmaps, financial materiality assessments, as well as performance targets and metrics pertaining to ESG risks and opportunities. We will support financial institutions in strengthening the innovation of ESG financial products and services, diversifying ESG application scenarios in the green finance sector, and offering preferential interest rate or streamlined business processes to enterprises with high ESG ratings. We will support financial institutions and enterprises in issuing ESG-themed bonds and support enterprises demonstrating strong ESG performance in going public.

Advance Green Transition of Consumption Patterns. We will increase supply of green products, encourage enterprises to go green in design, material selection, packaging, and logistics, and establish resource recycling systems, thereby reducing energy and resource consumption throughout the product’s full lifecycle while minimizing its ecological impacts. We will proactively expand green consumption and steer enterprises and the public toward green procurement. We will promote green lifestyles among the public and excise moderation and green low-carbon principles.

Establish an ESG Green Industry Hub

Accelerate the Development of a Green and Low-Carbon Industrial System. We will focus on developing new quality productive forces within Xiamen’s “4+4+6” modern industrial structure, by promoting green transition and upgrading of pillar industries, accelerating the growth of strategic emerging industries, developing green manufacturing and service systems, while cultivating and attracting new green and low-carbon industries, emerging business formats, and innovative business models, thereby continuously increasing the share of green and low-carbon industries in the overall economy. Enterprises are encouraged to leverage technological advancements to promote energy performance contracting, water stewardship contracting, third-party environmental governance models, and implement outcome-based environmental stewardship services.

Build Full Lifecycle Green and Low-Carbon Industrial and Supply Chains. We encourage leading enterprises to play a leading role in critical areas such as supply chain integration and innovative low-carbon management. This involves applying ESG philosophy to the entire process including R&D design, raw material procurement, production, logistics, warehousing, consumption and recycle/disposal. These efforts will advance supply chain-wide green and low-carbon development. We will strengthen the application of artificial intelligence in ESG-related domains, actively implement ESG assessments in supply chain management, and lead industry-wide adoption of ESG principles across upstream and downstream chains.

Advance the Development of Green, Circular, and Low-Carbon Industrial Parks. By leveraging platforms such as the Xiamen Torch Development Zone for High Technology Industries and Xiamen Tongxiang High-tech City, we take active measures to develop a group of national, provincial, and municipal-level green industrial parks. We encourage green planning, design, investment, and construction within these green industrial parks to establish industrial chains of low-carbon as well as circular economy and enhance efficient resource utilization. We cultivate a group of national-level green factories, green manufacturing enterprises, and green supply chain management enterprises, while supporting these entities in compiling ESG reports.

Establish an ESG Professional Services Hub

Nurture and Expand ESG Professional Service Entities. We will vigorously attract renowned domestic and international ESG service providers, including accounting firms, ESG assurance providers, ESG rating and consulting agencies, to set up operations in Xiamen. We will also facilitate internationally accredited carbon footprint and emissions certification bodies to set up branches in Xiamen, thereby strengthening the ESG services ecosystem. We will support local professional organizations to actively expand their ESG-related services and enhance ESG professional service capabilities, and develop ESG service brands. We will reinforce the governance of ESG professional service institutions, refine service quality evaluation mechanisms, and guide professional service institutions toward standardized and professional development. We will encourage and promote the establishment of ESG institutions, societies, and industry associations to provide professional support for ESG policy-making, standardization, and services, thereby driving the industrialization, cluster-based development, and scale expansion of ESG.

Strengthen ESG Learning, Training, and Promotion. We will actively conduct ESG learning and training programs, industry alignment initiatives, and public outreach to enhance the awareness and capabilities of government departments, civil society, and enterprises in implementing ESG practices. We will support exemplary enterprises in engaging with domestic and international ESG awards and recognition programs to showcase Xiamen’s ESG cases and practices and enhance the city’s visibility. We will leverage pivotal platforms including the China International Fair for Investment and Trade (CIFIT) and World Ocean Week in Xiamen to host internationally influential ESG-themed events such as an annual ESG global forum to showcase Xiamen's best practices, strengthen international ESG collaboration, and enhance global promotion efforts.

Enhance ESG-Related International Arbitration Capabilities. We will take into comprehensive consideration legal frameworks, institutional mechanisms, technological readiness, and international collaboration to advance cross-border legal services, thereby enhancing risk resilience for enterprises in global expansion ventures. We will explore the introduction of third-party funding mechanisms with sound legal and regulatory compliance, while advancing arbitration institutions' case-processing capacity to ensure equitable adjudication of ESG-related disputes and deliver positive impact. We will intensify institutional collaboration by facilitating dynamic exchanges between domestic and international arbitration bodies. This includes sharing ESG arbitration experiences, case precedents, and datasets to enhance institutional competencies in resolving ESG-related international commercial disputes.

Establish an ESG Research Innovation Hub

Advance the Development of a High-Level Think Tank Alliance We encourage universities, research institutes, academic societies, and professional associations in Xiamen to strengthen the development of ESG disciplines and supporting platforms. By leveraging the research strengths of Xiamen National Accounting Institute and Xiamen University in ESG studies, we aim to establish a high-level ESG think tank group and develop ESG exchange initiatives such as training programs, forums and others.

Forge an ESG Research Hub with Global Connection and Local Relevance. We will continue to follow ESG frontier developments, establish a platform for international collaboration among ESG industry, academic and research institutes, and advance ESG practices with local perspectives. We will strengthen theoretical research on ESG-related frameworks, disclosure mechanisms, assurance standards, and rating methodologies to provide a theoretical foundation for government decision-making. We will deepen studies on ESG applied theories to offer enterprises actionable guidance and accelerate the commercialization of research outcomes. We will advance research on ESG-driven investment to establish an investment framework underpinned by ESG philosophy.

Establish an ESG Talent Hub

Prioritize ESG Talent Development. We will integrate ESG-related professional training into relevant training systems. Universities, research institutes, academic societies, industry associations, and social organizations are encouraged to organize ESG capacity-building forums and training programs. We will encourage qualified higher education institutions and research institutes to strengthen ESG talent cultivation and social services, establish ESG-related academic disciplines, conduct ESG research projects, develop advanced ESG courses, and enhance the cultivation and supply of interdisciplinary ESG professionals.

Attract High-Caliber ESG Talents. We support relevant institutions and enterprises in initiating and establishing Xiamen ESG alliances, associations, and academic societies to attract domestic and international leading experts and ESG professionals for exchanges and collaboration in Xiamen. We will strengthen the recruitment of domestic and global professional research talents in ESG fields, and enhance intellectual support from higher education institutions and research institutes.