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 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.
