SASAC Calls for Central SOEs to Fulfill Social Responsibilities in High Standard

On June 4, 2024, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) released the Guidelines for Centrally-administrated State-owned Enterprises (Central SOEs) to Fulfill Social Responsibilities in High Standard in the New Era (the “Guidelines”), with immediate effect.

The Guidelines highlight 17 opinions in five aspects revolving around the overall requirements, calling upon central SOEs to strengthen compliance management, work effectively in key compliance areas such as anti-monopoly, anti-commercial bribery, ecological protection, work safety and labor employment, and pursue the liability for rule-breaching business investment practices. It urges central SOEs to prevent major risks, promote lawful and compliant operations, and continuously improve performance quality and business reputation. Central SOEs shall increase high-quality supply, deepen the transformation and upgrading of traditional industries, and vigorously develop strategic emerging industries. They shall make forward-looking layouts for future industries, serve the establishment of a modern industrial system, strengthen cooperation with enterprises of various ownership types in industries, capital, technology, procurement, tendering and bidding fields, and lead and drive the coordinated development of private and small and medium-sized enterprises. The Guidelines also call for strengthening ESG work, and promoting controlling listed companies to implement environmental management requirements with high standards around ESG issues, fulfill their social responsibilities, improve their corporate governance, enhance high-level ESG information disclosure, enhance ESG governance capabilities and performance level, and win greater value recognition in the capital market.