Multinationals in Shanghai ramp up ESG efforts

Foreign-invested firms' ESG initiatives incorporate local practices.

Shanghai-based multinational companies are said to be "stepping up" ESG-wise.

"Multinational corporations based in Shanghai are stepping up environmental, social, and governance (ESG) innovation through localised practice, supported by the city's open business environment and clear policy framework," the Chinese municipality reported, highlighting the trend during the recent Shanghai Foreign-Invested Enterprises ESG Report and Case Release Conference.

According to the Shanghai government, over 90% of the 41 ESG reports collected from foreign-invested enterprises in Shanghai in 2025 incorporated China-specific practices.

It was also noted that these foreign-invested businesses that operate in the city had developed ESG cases in the areas of climate action, public welfare, and the circular economy.

Examples include Nestle China, which is advancing more sustainable agricultural practices whilst reducing greenhouse gas emissions through precision feeding and improved manure management.

The Shanghai Municipal Commission of Commerce has a 2024-2026 action plan designed to enhance the ESG capabilities of foreign-related enterprises.