Taipei, 12 Feb 2014 – The Taiwan Stock Exchange Corporation (TWSE) is pleased to announce that specified listed companies will start mandatory corporate social responsibilities (CSR) reporting annually from 2015. Taiwan will be the first market in Asia-Pacific to implement mandatory CSR reporting that adheres to internationally recognized Global Reporting Initiative (GRI) G4 principles this year.
 
This followed new measures and rules set out by Taiwan’s Financial Supervision Commission (FSC) and codified by TWSE last month. They require that certain listed companies must implement mandatory CSR reporting. These include companies from food processing, financial and chemical sectors, as well as companies which have over 50% of their total revenue coming from food & beverage businesses; large enterprises with paid-in capital no less then NT$10bn or US$310m also need to comply.
 
CSR reports typically include non-financial disclosure on environmental, social impacts and other corporate governance issues relevant to sustainable development. G4 CSR reporting will have to be completed by the end of June each year. However, if the listed company does not prepare a corporate social responsibility report in the most recent year or does not prepare the report by referring to the GRI Guidelines, or the CSR report has obtained a CPA's letter of opinion, the filing may be completed by December 31.
 
Exchanges around the world also actively promote mandatory disclosure of CSR information in recent years. CSR reporting is becoming a mainstream requirement for many listed companies globally, as more governments and stakeholders expect not just voluntary CSR reporting but mandatory disclosure of accurate, complete and comparable CSR information to make more informed choices. In June 2014, TWSE also joined the World Federation of Exchange Sustainability Working Group to enhance international best practices on environmental, social and corporate governance (ESG) issues in Taiwan.    
 
In addition, TWSE requires food processing companies to obtain external verification on their CSR reporting.  Furthermore, TWSE will continue to offer corporate governance conferences, training seminars for business communities, and experience sharing sessions. During Jan 2015, TWSE  hosted the “Corporate Social Responsibility Report – Seminar on Demonstrating the Value of Sustainable Operation”, with keynote address by Mr. Eugene Chien, former Minister of the Environmental Protection Administration and Chairman of Taiwan Institute for Sustainable Energy, and Mr. Niven Huang, Chairman of The Association for Sustainable & Responsible Investment in Asia. 
 
“TWSE is delighted that more and more companies see the value of CSR development and reporting” said Mr. Lee Sush-der, Chairman of TWSE and head of the Advisory Committee of the Corporate Governance Center.
 
“We believe fostering quality, corporate transparency and growth potential of Taiwan’s capital market will attract more investors looking for sustainable investment opportunities.  By enhancing the reporting standards in conformity with international best-practices, Taiwan will promote an environment where firms can better manage their future development and risks”.
 
For an update on Taiwan’s companies that issue CSR reports, and information on corporate governance reforms such as implementation of independent directors, board nomination system, etc., please visit TWSE’s dedicated corporate governance center’s website: http://cgc.twse.com.tw/frontEN/index