BEIJING, March 27 The Shanghai Stock Exchange
has asked China's securities regulator to make it mandatory for
listed companies to report their greenhouse gas emissions to
pave the way for new carbon-related financial products.
The exchange, which has listed nearly 1,000 Chinese
companies, wants to set up a new benchmark index for companies,
based on how much carbon each company emits per yuan it makes.
The index would allow traders to invest in products
associated with companies that are least exposed to fossil fuel
risks if China and the world step up efforts to cut emissions
and mitigate the impact of climate change.
"Companies are not willing to release carbon emissions
data," the exchange's Financial Innovation Laboratory said in a
new report, calling on the China Securities Regulatory
Commission to make emission reports mandatory.
Shanghai last year launched a carbon emissions trading
scheme which forces local firms to report their emissions, but
so far the data has not been made publicly available.
The International Energy Agency said last year that if the
world is to reach its target of limiting global temperature
growth to 2 degrees C by mid-century, two thirds of proven
fossil fuel resources must stay in the ground.
Banking group HSBC has said that this might devalue some oil
firms by up to 40 to 60 percent.
But big energy users remain reluctant to disclose their
Last month, a U.S. group of investors with combined assets
of over $200 billion filed shareholder resolutions with ten
energy companies, including Exxon Mobil and Southern Co
, demanding they disclose their strategies for competing
in a lower-carbon future.
(Reporting by Kathy Chen and Stian Reklev; Editing by