Pioneering sustainability with AI: advancing toward a digital and green future — The fifth CSO Forum and Sustainability Excellence Awards program launched in Beijing

At the historic juncture marking the commencement of the 15th Five-Year Plan and the introduction of mandatory ESG disclosure obligations for companies listed on the A-share market, the fifth CSO Forum and Sustainability Excellence Awards program (“the Program”) was launched in Beijing today.

This year’s program, themed “Pioneering sustainability with AI”, focuses on how listed companies can harness intelligent technologies like artificial intelligence (AI) to shift ESG management from compliance-driven disclosure to value creation.

The commencement of the National 15th Five-Year Plan provides clearer strategic direction for the nation's comprehensive green transition and marks a paradigm shift in China’s sustainability governance system – from advocacy and guidance to a more institutionally constrained and value-oriented stage. Since the end of last year, stock exchanges in Shanghai, Shenzhen and Beijing have issued updated guidelines for preparing sustainability reports, while China’s Ministry of Finance and relevant authorities jointly released the “Corporate Sustainability Disclosure Standard No. 1 – Climate (Trial)”. These frameworks have improved the standardization of ESG information disclosure, a key step in aligning China with international sustainability standards. This shift represents a move from voluntary ESG disclosure to a regulatory mandate. Companies need to integrate these requirements into their internal management systems and treat ESG as part of business operations rather than a retrospective reporting exercise.

Jack Chan, EY China Chairman and EY Greater China Regional Managing Partner, says: “This year, an increasing number of companies are expected to publish their first ESG report, as ESG disclosure has shifted from optional to compulsory. Emerging technologies such as AI are deepening the integration of technological innovation with the green and low-carbon transition. This is pivotal in stimulating new drivers of green growth and fostering new momentum for sustainable development. This will be critical for Chinese listed companies as they navigate economic cycles and achieve high-quality growth during the 15th Five-Year Plan period.”

Accelerating progress toward a sustainable future with digital intelligence: Integrating governance into technological applications

AI is reshaping how businesses produce, operate and allocate resources. The National 15th Five-Year Plan Outline underscores the development of governance and ethical guidelines for AI applications while emphasizing technological innovation. This signals that businesses need to establish responsible governance frameworks in line with the principle of “people-centered and intelligence for good”, while leveraging AI to enhance ESG data governance, risk identification and decision-making.

Michael Bi, CSO Forum and Sustainability Excellence Awards Program Chairman and EY Greater China Markets Managing Partner, says: “As ESG disclosure obligations become mandatory, core competitiveness lies in a company’s ability to integrate ESG into business decision-making beyond information disclosure. To translate sustainability capabilities into recognized and trusted competitiveness in capital markets, companies can leverage AI in data collection, carbon accounting and risk identification to enhance the efficiency and accuracy of ESG management.”

This year, “AI inclusiveness and governance” has been included as an assessment criterion, encouraging businesses to foster responsible AI development through effective ethical guidelines and governance systems while capturing the benefits of technological advancement. Meanwhile, the deep integration of AI and ESG is redefining talent strategies. Multidisciplinary talent with a green mindset, data and AI capabilities, and cross-functional collaboration experience are playing a pivotal role in advancing business transformation.

A five-year trusted assessment: showcasing progress and leading the way toward sustainability

The Program is EY Greater China Region’s flagship initiative in sustainable development. As it enters its fifth year, it has documented the continuous progress Chinese companies have made in green transition, ESG system development and digital transformation. Building on the scientific and rigorous evaluation framework of previous years, this year’s Program will incorporate the latest national and international sustainability standards and regulatory requirements into its evaluation. It aims to provide a detailed and systematic assessment of ESG reports, supported by the EY corporate ESG database and digital analytics tools.

Hoffman Cheong, CSO Forum and Sustainability Excellence Awards Program Co-chairman and EY Greater China North Managing Partner, says: “Over the past five years, the Program has tracked the evolution of sustainability practices among Chinese companies. This year, we will place greater emphasis on leading companies that have translated ESG vision into action and moved from reporting to implementation. Through a science-based and systematic assessment, the Program aims to identify pioneers in green transition powered by digital intelligence and provide a benchmark for other listed companies.”

With policies evolving, technology advancing and global rules being reshaped, EY Greater China Region expects the Program to support more listed companies in enhancing ESG management through digital intelligence and strengthening sustainability through governance innovation. EY teams remain committed to working closely with more companies to build long-term competitiveness across broader markets.

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