Research Article
ESG Assessment of 12 Chinese SMEs: The Proposal of a Two-stage Framework
Kwok-pong Lee,
Xichun Bi,
Kam-in Hung,
Hongyi Sun*
Issue:
Volume 11, Issue 5, October 2026
Pages:
101-110
Received:
9 October 2026
Accepted:
21 October 2026
Published:
31 October 2026
DOI:
10.11648/j.ajmse.20261105.11
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Abstract: This report presents a comprehensive ESG (Environmental, Social, and Governance) assessment of twelve small and medium-sized enterprises (SMEs) across diverse industrial sectors in China. Given that SMEs account for over 99 percent of all market entities in China and contribute more than 60 percent of national GDP, understanding their ESG posture is critically important. However, SMEs face systemic challenges in ESG evaluation due to resource constraints, lack of specialized expertise, and the absence of standardized, scalable assessment methodologies. The assessment employed a forty-indicator framework adapted from the China City Index of Venture (CCIV) seven-pillar model, organized across environmental, social, and governance dimensions. Data were collected through semi-structured interviews with senior representatives of twelve purposively selected SMEs between October 2025 and January 2026. The findings reveal uniformly low ESG maturity across all twelve cases, with total scores ranging from 9 to 28 out of 120 (7.5% to 23.3%), all at the Initial maturity level. The assessment identified a consistent "awareness-without-action" phenomenon, where senior managers acknowledged ESG importance but had not translated awareness into formal management systems due to absence of regulatory mandates, cost concerns, and resource constraints. Supply chain management emerged as the critical weakness across all cases. Company size positively correlated with ESG maturity, while company age was not a reliable predictor. Sectoral patterns revealed that environmentally oriented, socially mission-oriented, and professionally regulated sectors exhibited relatively stronger performance in their respective dimensions. The report concludes with implications for policy and practice, emphasizing the need for sector-specific ESG frameworks, accessible assessment tools, and promotion strategies that emphasize the business case for sustainability. The findings establish the necessity for a Stage II in-depth assessment to validate and elaborate upon the baseline findings, forming the basis of a two-stage ESG assessment framework for Chinese SMEs.
Abstract: This report presents a comprehensive ESG (Environmental, Social, and Governance) assessment of twelve small and medium-sized enterprises (SMEs) across diverse industrial sectors in China. Given that SMEs account for over 99 percent of all market entities in China and contribute more than 60 percent of national GDP, understanding their ESG posture i...
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