At a thematic session of the 2025 CIIE Shanghai Events and Conferences, held during the 6th China International Import Expo, the SAIF Center for Sustainable Investment (SAIF CSI) released the Shanghai Foreign-Related Enterprises ESG Development Report.
Based on comprehensive data, the report outlines the environmental, social, and governance (ESG) practices of foreign-related enterprises in Shanghai, providing empirical support and policy guidance for building an internationally competitive ESG ecosystem and advancing institutional liberalization.
As global green governance standards take shape and sustainability becomes embedded in international trade and investment, ESG has emerged as a new “universal language” for evaluating long-term corporate value. For Shanghai—a frontier of China’s internationalization—ESG capacity-building among foreign-related enterprises is essential both to their own sustainable development and to the city’s global competitiveness.
The report analyzes 325 listed and 1,140 unlisted foreign-related enterprises registered in Shanghai, finding that ESG development has shifted from system establishment to capability deepening, with significant diversification and positive structural change.
Key Findings
Private enterprises dominate among listed companies, while foreign-invested entities lead among unlisted ones, with state-owned capital playing a stabilizing role in key sectors. Pudong New District and the Free Trade Zone form the geographic core, hosting nearly 40% of listed and over 20% of unlisted foreign-related enterprises; districts such as Minhang, Jiading, and Songjiang serve as critical manufacturing hubs—together creating a “core innovation, peripheral manufacturing” layout.
ESG disclosure quality has improved significantly, with listed foreign-related enterprises surpassing the A-share average in ESG reporting. State-owned listed enterprises lead in ESG ratings, followed closely by foreign-invested and private enterprises. Most enterprises hold patents and are actively engaged in energy conservation, carbon reduction, and clean energy sectors.
Key Challenges
Foreign-related enterprises face a “dual-track” compliance burden, navigating major international ESG standards alongside domestic regulatory requirements. While leading enterprises have begun to adapt, SMEs continue to struggle with inconsistent metrics, supply chain data gaps, and frequent standard updates. At the ecosystem level, policy fragmentation, uneven service coverage, and weak cross-departmental coordination limit overall synergy.
Recommendations
The report calls for Shanghai to align institutional reform with sustainable development by strengthening data and governance infrastructure, improving service system capabilities, and advancing corporate transparency within an internationally comparable framework. A policy environment characterized by clear institutions, coordinated ecosystems, and adaptable standards will be essential to driving a comprehensive upgrade in ESG capabilities among foreign-related enterprises.
The report was completed with the guidance and support of the Shanghai Municipal Commission of Commerce. Its findings sparked extensive discussion among enterprises, institutions, and scholars at the CIIE session.
