Abstract:

Background & Aims: The Third Plenary Session of the 20th Central Committee of the Communist Party of China explicitly emphasized the need to strengthen coordination mechanisms for biodiversity conservation, actively improve green finance and market information disclosure systems, and deepen the reform of the system for environmental information disclosure mandated by law. Access and benefit-sharing on biological genetic resources, as a focal concern in global biodiversity conservation and sustainable utilization, demonstrates high compatibility between its information disclosure mechanisms and the rule-of-law practices and theoretical foundations of the Kunming-Montreal Global Biodiversity Framework, green finance, and information-driven self-regulation. However, empirical analysis of access and benefit-sharing information disclosure practices among listed companies reveals notably low disclosure levels with substantial gaps compared to practical requirements. To address this, this study aims to enhance the breadth and depth of access and benefit-sharing information disclosure and provide effectively practical experience for access and benefit-sharing information disclosure models.

Methods: Listed companies are deeply engaged in the domestic allocation and cross-border flows of biological genetic resources, and serve as paradigmatic research subjects for thematic studies on information disclosure related to access and benefit-sharing on biological genetic resources. By collating 660 biodiversity-themed sustainability reports issued by the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2021 to 2023, this study conducts empirical study and theoretical analysis from both macro-dimension and micro-dimension. At the macro-level, the study conducts quantitative research focusing on indicators such as the number of listed companies involved, report themes, company nature, reference standards, geographical distribution, and industry sectors in China. At the micro-level, the study categorizes and analyses the content of these sustainability reports by key access and benefit-sharing elements, including specific objectives, participating entities, regulatory frameworks, applicable targets, and concrete mechanisms.

Results: Empirical study finds that Chinese listed companies are actively embracing environmental, social and governance (ESG) concept in disclosing access and benefit-sharing on biological genetic resources. Information disclosure of biodiversity conservation in sustainability reports demonstrates significant growth, with expanding coverage of reporting companies, improved adoption of standards, and increased industry participation. Post-adoption of the Kunming-Montreal Global Biodiversity Framework, access and benefit-sharing information disclosure progressively aligns with normative requirements. Moreover, the status of access and benefit-sharing information disclosure fails to correlate positively with the broader ecological environment information disclosure trends. The effectiveness of access and benefit-sharing information disclosure varies significantly across listed companies based on their characteristics, geographical locations, and industrial sectors. The current disclosure critically lacks the specific objectives, participating entities, regulatory frameworks, applicable targets, and concrete mechanisms of access and benefit-sharing on biological genetic resources deeply defined in the Nagoya Protocol.

Suggestions: In the future, access and benefit-sharing on biological genetic resources issues need to be deeply embedded in the field of information disclosure, and the local implementation of global biodiversity conservation actions under the guidance of the Kunming-Montreal Global Biodiversity Framework should be promoted. (1) Refine financial instruments and evaluation systems to integrate monetary benefits from access and benefit-sharing with green finance. (2) Improve the relevant legislation and refine the self-regulation mechanism to standardize access and benefit-sharing information disclosure. (3) Strengthen access and benefit-sharing agreements and approval systems, enhance information disclosure supervision, and explore assurance mechanism for validating agreements and administrative approvals.

Key words: listed companies, biological genetic resources, access and benefit-sharing, information disclosure