China Policy Journal Volume 1, Number 1, Fall 2018 | Page 120

Environmental Performance Rating and Disclosure: An Empirical Investigation in Jiangsu, China
Figure 1. Rating Criteria of the Green Watch Program in Jiangsu
Source: Revised based on Figure 1 in Wang et al. (2004).
Green Watch ratings provided
incentives for firms to improve their
environmental performance in a comprehensive
way. The primary benchmarks
for ratings were China’s emission
and discharge standards that specify
effluent concentration limits. Firms
violating any of these standards were
rated red, and firms violating standards
in more than 60% of inspections were
rated black. The secondary benchmarks
were China’s load-based emission and
discharge standards. Firms that satisfied
the primary benchmarks but violated
the secondary standards were
rated yellow. The ratings system also
incorporated other performance indicators,
including hazardous waste disposal
practices, solid waste recycling,
pollution accidents, public complaints,
internal management requirements,
China cleaner production certificates,
ISO 14000 certificates, administrative
penalties, and other citations for illegal
activity. For each indicator, the system
specified a link to ratings that was clear,
unambiguous, and publicly available.
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