State Environmental Protection Administration
                       Document
                            Huanfa [2008] No. 24


   Guiding Opinions on Strengthening Environmental
   Protection Supervision and Management of Listed
                      Companies
The environmental protection bureaus (departments) of all provinces,
autonomous regions, and municipalities directly under the Central Government,
the environmental protection bureaus of sub-provincial cities, the
Environmental Protection Bureau of Xinjiang Production and Construction Corps,
and the Environmental Protection Bureau of the Chinese People's Liberation
Army:
In order to implement the "Decision of the State Council on Implementing the
Scientific Outlook on Development and Strengthening Environmental Protection"
(National Development and Reform Commission) [2005] No. 39) on the requirement
that enterprises should disclose environmental information and the "Notice of
the State Council on Printing and Distributing Comprehensive Work Plans for
Energy Conservation and Emission Reduction" (Guo Fa [2007] No. 15) on
strengthening the environmental protection verification of listed companies,
in accordance with the "Environmental Information Disclosure" Measures (for
Trial Implementation)" (Order No. 35 of the State Environmental Protection
Administration), "Notice on Environmental Protection Verification of
Enterprises Applying for Listing and Listed Enterprises Applying for
Refinancing" (Huan Fa [2003] No. 101), "On Further Regulations" Circular on
the Environmental Protection Verification of Application for Listing or
Refinancing of Production and Operation Companies in Heavy Pollution
Industries (Huanban [2007] No. 105), and the Administrative Measures for
Information Disclosure of Listed Companies (Order No. 40 of the China
Securities Regulatory Commission), Notice on the IPO Application and
Application Documents of Production and Operation Companies in Heavy Pollution
Industries (China Securities Regulatory Commission Issuance Supervision Letter
[2008] No. 6), etc., to guide listed companies to actively fulfill their
social responsibilities for environmental protection, and to promote listed
companies to continuously improve their environmental performance , striving
to be a resource-saving and environment-friendly model, and hereby put forward
the following opinions: 1. Further improve and strengthen the environmental
protection verification system
of listed companies. It has played a role in promoting listed companies in
heavily polluting industries to comply with national environmental protection
laws and regulations and reducing investment risks caused by environmental
pollution. In 2007, the State Environmental Protection Administration
promulgated and implemented the "Notice on Further Regulating the
Environmental Protection Verification of Companies in Heavy Pollution
Industries Applying for Listing or Refinancing" (Huanban [2007] No. 105) and
the "Guidelines for Environmental Protection Verification of Listed
Companies" , for companies engaged in thermal power generation, iron and
steel, cement, electrolytic aluminum industries and inter-provincial
production and operation companies engaged in other heavily polluting
industries, the requirements for environmental protection verification
procedures have been clarified, and the environmental protection verification
work has been further standardized and promoted. Local environmental
protection departments at all levels have also successively carried out
environmental protection inspections of listed companies, which have received
good results. In order to further strengthen the environmental protection
verification of listed companies, the State Environmental Protection
Administration will continue to improve the relevant regulations on
environmental verification of listed companies, strictly control the
environmental verification of listed companies, improve the review mechanism
for environmental verification experts, strengthen the training of listed
companies and related technical units, and broaden the public. Participation
and social supervision channels, and increase publicity efforts. Provincial
environmental protection departments should strictly implement the
environmental protection verification system for listed companies, do a good
job in the environmental protection verification work of listed companies
within their jurisdictions, and provide relevant opinions to listed companies
that the State Environmental Protection Administration is responsible for
verification. For listed companies that have seriously violated national
environmental protection laws and regulations and industrial policies during
the verification period, have major environmental pollution accidents and
caused serious consequences, and have committed fraud during the verification
process, no environmental verification opinions shall be issued. For the
problems found in the verification, enterprises should be urged to rectify
them on time. Provincial environmental protection departments should
strengthen coordination and cooperation with securities regulatory agencies,
establish an information notification mechanism, and promptly notify the
relevant securities regulatory agencies of the environmental protection
verification of listed companies .
    2. Actively explore the establishment of an environmental information
disclosure mechanism
for listed companies In order to promote the true, accurate, complete and
timely disclosure of relevant environmental information by listed companies,
especially those in heavily polluting industries, and to enhance the social
responsibility of enterprises, the State Environmental Protection
Administration will work with the China Securities Regulatory Commission.
Establish and improve the coordination and information reporting mechanism for
the environmental supervision of listed companies. The State Environmental
Protection Administration will promote and supervise the disclosure of
environmental information by listed companies in accordance with the Measures
for the Disclosure of Environmental Information (for Trial Implementation) and
other relevant regulations. Local environmental protection departments at all
levels shall report the list of listed companies that fail to disclose
environmental information as required to the State Environmental Protection
Administration, and at the same time strictly guard the company's business and
technical secrets in accordance with the law. The State Environmental
Protection Administration will, in accordance with the environmental
information notification mechanism of listed companies, promptly and
accurately notify the CSRC of the list of listed companies that fail to
disclose environmental information as required. It shall be handled by the
China Securities Regulatory Commission in accordance with the "Measures for
Information Disclosure of Listed Companies". The environmental information
disclosure of listed companies is divided into two forms: mandatory disclosure
and voluntary disclosure. If there is a major event that may have a
significant impact on the trading price of the listed company's securities and
derivatives and is related to environmental protection, and the investor has
not yet learned of it, the listed company should immediately disclose it,
explaining the cause of the event, the current state and the possible
impact. . "Major events" mainly include: ——The newly announced environmental
laws, regulations, rules and industry policies may have a significant impact
on the company; ——The company is investigated by the environmental
protection department due to environmental violations, or is subject to
criminal penalties or major administrative penalties ; ——The company has
major investment behaviors such as new, renovated, and expanded construction
projects with significant environmental impact; ——Due to environmental
protection reasons, the company has been decided by the relevant people's
government or relevant departments to remediate within a time limit or to
suspend production, relocate, or close down ; ——The company is involved in
major lawsuits due to environmental problems or the main assets are sealed up,
seized, frozen or mortgaged or pledged; Other major events related to the
environment with greater impact. Investors, the media and all sectors of
society have the right to report listed companies' failure to disclose
environmental information as required. The state encourages listed companies
to voluntarily disclose other environmental information on a regular basis,
and encourages enterprises to take the initiative to assume social and
environmental responsibilities. The State Environmental Protection
Administration will explore with the China Securities Regulatory Commission to
further improve the regulatory mechanism for environmental information
disclosure by listed companies. 3. Carrying out research and pilot projects
on environmental performance evaluation of listed companies
The State Environmental Protection Administration will explore the
establishment of an environmental performance evaluation system for listed
companies, organize research on the environmental performance evaluation index
system of listed companies, and select relatively mature sectors or high-
energy-consuming and heavy-polluting industries to launch listings in a timely
manner The company's environmental performance evaluation pilot, the
establishment of the listed company's environmental performance evaluation
information system, the compilation and public release of the listed company's
annual environmental performance index and comprehensive ranking, to provide
the majority of shareholders and investment institutions with the "big market"
information of the listed company's environmental performance, and to create a
positive environment for the majority of shareholders and investors. The
social atmosphere in which the media conducts "green supervision" of listed
companies. Fourth, increase the supervision and inspection of listed
companies' compliance with environmental protection laws and regulations.
Local environmental protection departments at all levels should effectively
strengthen the supervision and inspection of listed companies, especially
listed companies in heavily polluting industries, to comply with environmental
protection laws and regulations. It is necessary to ensure the frequency of
inspections and supervisory monitoring of listed companies, supervise the
normal operation of their pollution control facilities, and ensure that the
discharge of pollutants reaches the standard stably. In accordance with the
"Measures for Disclosure of Environmental Information (Trial)", the
environmental administrative penalties imposed on listed companies shall be
disclosed to the public in a timely manner; refusal to implement environmental
administrative penalty decisions, excessive discharge of pollutants or
exceeding the total amount of pollutants, and occurrence of major or extra-
large environmental pollution incidents List of listed companies and other
information. February 22, 2008