The sustainability report of listed companies is disclosed 

In order to enhance the information transparency of Taiwanese companies and fully align with international sustainability disclosure standards, the Financial Supervisory Commission (FSC) and the Taiwan Stock Exchange have actively promoted sustainability disclosure systems in recent years. Since 2022, a number of policies, including the "Action Plan for Sustainable Development of Listed and OTC Companies," have been announced, stipulating that listed companies are required to prepare sustainability reports in stages based on their paid-in capital to demonstrate their emphasis on environmental, social, and corporate governance (ESG) issues.

 I . "Action Plan for Sustainable Development of Listed and OTC Companies" (released in 2022) 

This action plan is led by the Financial Supervisory Commission and is currently one of the core policies for promoting corporate sustainability information disclosure in Taiwan. The main specifications are as follows: 

Competent authority: Financial Supervisory Commission (FSC) 

Main purpose: To establish an institutionalized framework for sustainability disclosure, strengthen information quality, and gradually align with global standards. Three core promotion points: 

1. Inclusion of disclosure obligations of all listed and OTC companies on an annual basis:

 Based on the "paid-in capital", all listed and OTC companies will be included in the sustainability report preparation system, and the scope of application will be expanded year by year. 

2. Strengthen key aspects of disclosure content: 

including climate change risk and opportunity disclosure (such as carbon emissions, energy management, etc.), board sustainability governance functions, supply chain sustainability management mechanisms, etc. 

3. Align with international trends and standard frameworks: 

Encourage companies to refer to international disclosure standards for disclosure, including:

•  TCFD (Task Force on Climate-related Financial Disclosures) 

• IFRS S2 (Climate Disclosure Standards Established by the International Sustainability Standards Board)

•  GRI Standards

• The phased disclosure schedule of the Standards (Global Sustainability Reporting Standards ) is as follows: 

II . "Operational Regulations for the Preparation and Filing of Sustainability Reports by Listed Companies" (amended on May 5, 2024)

 As sustainability information disclosure has become an important basis for evaluating corporate risks and values in global capital markets, the Taiwan Stock Exchange (TWSE) officially amended and promulgated the "Operational Regulations for Listed Companies Preparing and Reporting Sustainability Reports" in May 2024, further refining the content of reports, reporting schedules, and disclosure regulations. It enables enterprises to systematically compile and disclose sustainable development information under unified standards. Competent authority: 

• Taiwan Stock Exchange (TWSE) 

Core Specifications: 

1. Clearly stipulate the disclosure structure and operating procedures: 

The regulations clearly stipulate the scope of content, format structure, reporting procedures, and completion deadlines that should be included in the sustainability report, and are interconnected with the FSC's "Sustainable Development Action Plan" to ensure consistency in legal compliance. 

2. Basis for disclosure based on GRI standards: 

The regulations state that listed companies should use the globally accepted GRI Standards (Global Sustainability Reporting Standards) as the core disclosure standard, and may supplement international standards such as IFRS S1/S2 (Sustainability and Climate Disclosure Standards), TCFD (Climate-related Financial Disclosures), and SASB (Sustainability Accounting Standards) based on industry characteristics and company circumstances to enhance the professionalism and comparability of reports.

 3. Report Reporting through the MOPS Platform: 

All sustainability reports must be uploaded to the "Public Information Observatory (MOPS)" in PDF format according to the specified schedule to facilitate inquiries by investors and the public. TWSE also has a review mechanism to ensure the correct format and content integrity of the reporting documents 

Disclosure schedule and reporting method: 

• Disclosure time: 

The sustainability report must be prepared and disclosed to the public within 8 months after the end of each fiscal year. For example, for the 113th annual report, the filing must be completed by the end of August 114 at the latest. 

• Reporting channels and operation paths: 

Companies must log in to the MOPS system, enter the "Corporate Governance Area" ➝ "Sustainability Report Upload" function in order to complete the data submission, and ensure the completeness, accuracy, and downloadability of the documents. 

• Core content scope to be disclosed in sustainability reports:

•  In accordance with current disclosure regulations and the introduction trend of international standards, listed companies should cover the following key aspects when preparing sustainability reports to ensure the completeness, comparability, and usefulness of decision-making: 

1. Material Theme Identification Process and Results 

Explain how companies conduct stakeholder communication, operational impact assessments, and material issue determination in accordance with the "GRI 3: Material Topics" criteria, and disclose the list of material topics and their management methods. 

2. Climate Change Risk and Opportunity Disclosure

 In accordance with TCFD (Climate-related Financial Disclosures) and IFRS S2 standards, it discloses the climate risk governance framework, short, medium, and long-term climate scenario analysis, financial impact assessment, risk management strategies, and key performance indicators (KPIs) and goals. 

3. Detailed disclosure of greenhouse gas inventory results and carbon reduction strategies 

for Scope 1, Scope 2, and Scope 3 (Scope 1, 2, 3) greenhouse gas emissions during the inventory year, and propose specific carbon emission management policies, reduction actions, and transformation paths. 

4. Board Governance Structure and Supervisory Responsibilities 

For sustainability-related matters, disclose the participation of the board of directors, the operating mechanism of the sustainability committee or executive team established, decision-making and supervision responsibilities, and how sustainability performance is incorporated into management evaluation. 

5. Stakeholder Communication and Response Mechanism

 Explain how the company identifies the main stakeholders it interacts with (such as employees, investors, customers, suppliers, communities, etc.), what issues they are concerned about, and what response actions and follow-up mechanisms the company takes 

Through the implementation of this measure, Taiwan has established an institutionalized and internationally aligned sustainability disclosure system, which not only enhances companies' ability to identify ESG risks but also strengthens information symmetry and transparency in the capital market. For enterprises, this is not only a compliance responsibility, but also a key foundation for building trust and international competitiveness. 

 III ."Sustainable Development Roadmap for Listed and OTC Companies" (released by the Financial Supervisory Commission in 2023) 

In order to strengthen the international competitiveness of Taiwanese enterprises in terms of sustainability information disclosure, climate risk management, and corporate governance, the Financial Supervisory Commission (FSC) officially released the "Sustainable Development Roadmap for Listed and OTC Listed Companies" in 2023, clearly planning a three-stage promotion strategy from the short term to the long term by 2030, guiding companies to gradually align with global sustainability standards and accelerate the sustainable transformation of Taiwan's capital market. 

Phased Goals The roadmap focuses on "system construction" and "enhanced disclosure", and promotes the following three-stage goals according to the timeline: 

 1. Short-term goal (by 2024) 

• Achieve the institutionalization of comprehensive disclosure of sustainability reports: 

Promote the full implementation of the report preparation policy for hierarchical management of capital, covering all listed companies. 

• Strengthen TCFD practices: 

Guide companies to disclose climate-related financial risks and opportunities based on the TCFD framework, including four major aspects: governance, strategy, risk management, and indicator goals. 

2. Medium-term goal (by 2026) 

• Fully align with IFRS S1/S2 standards: 

Encourage companies to introduce IFRS sustainability disclosure standards (S1 for general sustainability disclosure and S2 for climate-focused) in their sustainability reports to improve disclosure consistency and global comparability.

•  Expand the coverage of sustainability governance framework: 

Promote the establishment of a sustainability committee or executive team, with the board of directors responsible for overseeing sustainability strategies and performance.

 3. Long-term goal (by 2030) 

• Establish ESG indicators in the regulatory system: 

Integrate sustainability indicators into securities market supervision, information disclosure, and company evaluation systems to strengthen the influence of sustainability performance on the protection of corporate shareholders' rights and interests. 

• Promote the internalization and institutionalization of corporate sustainability operations: 

including the establishment of risk assessment processes, performance tracking indicators, and internal audit systems to build a foundation for corporate resilience governance.   

 Measures to align with international disclosure standards 

In order to ensure that sustainable development is not a formality, the roadmap simultaneously proposes a number of specific policy directions for aligning with international standards: 

1.   Encourage the introduction of IFRS S1/S2 disclosure standards: Establish consistency between Taiwan's listed and OTC companies and sustainability information disclosure standards issued by the International Accounting Standards Board (ISSB). 

2. Strengthen carbon management and climate disclosure: Require companies to conduct greenhouse gas inventories, disclose Scope 1, 2, and 3 emissions, and implement low-carbon operational transformation in conjunction with climate risk financial assessment. 

3. Promote sustainable supply chain management: Promote sustainable procurement policies and the Internal Carbon Pricing (ICP) system, extend sustainability requirements to upstream and downstream partners, and achieve integrated supply chain governance. 

This roadmap is not only a policy blueprint but also a navigator for the company's future responsibilities and competitiveness. We will continue to follow this roadmap to promote the optimization of internal governance, climate information disclosure, and the establishment of carbon management systems, and steadily move towards the long-term goal of sustainable development. 

 Supplementary Note: Connection between the Sustainability Report Reporting Platform and the Competent Authority

 In order to strengthen the institutionalization and queryability of sustainability disclosure, the competent authority has established a dedicated reporting platform and set up a complete policy explanation section on the official website to assist enterprises in understanding the content of regulations, operational procedures, and the latest policy trends. The following are two key sources of information:

 1. Observatory of Public Information (MOPS)

•  website: https://mops.twse.com.tw 

• Regulatory authority: Taiwan Stock Exchange (TWSE). 

The "Public Information Observatory" (MOPS) is the core information disclosure platform in Taiwan's capital market, through which all financial reports, material information, annual reports, and sustainability reports of listed companies must be publicly announced. According to the "Regulations for the Preparation and Filing of Sustainability Reports by Listed Companies", the sustainability report must be uploaded in PDF format to the designated path in the MOPS "Corporate Governance Zone", complete the disclosure process, and be available for investors, media, and the public to inquire. MOPS also has a query function for the report over time, which helps track changes and progress in corporate disclosures, strengthening external oversight and stakeholder participation. 

2. Financial Supervisory Commission Sustainable Development Zone 

• Website: https://www.fsc.gov.tw/ch/home.jsp?id=109&parentpath=0 

• Supervisory Authority: Financial Supervisory Commission (FSC) 

In order to promote the sustainable development of the entire capital market, the Financial Supervisory Commission has set up a "Sustainable Development Zone" on its official website, covering the following contents:

1. Policy Releases and Regulatory Orders (e.g., Sustainable Development Action Plans) 

2.Timeline for the Promotion of Corporate Sustainability Reporting System 

3.Sustainable Finance Development Blueprint and Evaluation System 

4.Trend Analysis of International Disclosure Standards (e.g., IFRS S1/S2, ISSB, TCFD)

This section is an important channel for companies to understand sustainability legal requirements, grasp policy directions, and prepare internal countermeasures. 

Through the dual-track platform of MOPS and the Financial Supervisory Commission website, Taiwan has established a transparent, verifiable, and potentially internationally aligned sustainability disclosure system. Companies can not only complete statutory reporting operations based on this platform, but also serve as an important tool to improve their sustainability performance and communicate with external stakeholders.