The Taiwan Stock Exchange Corporation (the “TWSE”) amended the “Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies” in line with the growing demand of the global market for information disclosure on corporate sustainable development, and in accordance with the objectives and action plans of the Financial Supervisory Commission's “Corporate Governance 3.0 - Sustainable Development Roadmap”.

 

This revision focuses on the following four aspects.

 

1. In line with the updated version of the Global Reporting Institute (“GRI”) of 2021, the sustainability report should be prepared by referring to the general standards, industry standards and major thematic standards issued by the GRI from next year.

 

2. With reference to the standards of the Sustainable Accounting Standards Board (“SASB”) and taking into account the characteristics of the industry, the TWSE has formulated sustainability related indicators of material topics that investors are concerned. For food industries and companies whose operating revenue is over 50% derived from food and beverage, as well as chemical, finance and insurance, cement, plastics, iron and steel, oil, electricity and gas, semiconductor, computer and peripheral equipment, optoelectronic, communications and internet, electronic parts/components, electronic products distribution and other electronic industries, it is necessary to enhance their disclosure of industrial sustainability indicators in accordance with Attachment Table 1-1 to 1-14 of the Rules. However, as it will be the first year for the sustainability report preparation by companies with a paid-in capital between NT$2 billion and NT$5 billion, this requirement may become applicable from 2024 onward to such companies except those in the food, chemical, finance and insurance industries.

 

3. With reference to the Task Force on Climate Related Financial Disclosure (TCFD) standard, the TWSE regulates that enterprises which should prepare a sustainability report and should disclose nine items of climate related information which are set out in Attachment Table 2 of the Rules.

 

4. In order to further strengthen the quality of the sustainability report and enhance the governance on the institutions and experts handling the mandatory assurance of the sustainability report, the TWSE added the “Directions for the Management of Assurance Institutions for the Sustainability Report of TWSE and TPEx Listed Companies” to the Rules which will be applicable from 2024 onward; the Directions will be released in the fourth quarter of this year.

 

The TWSE said that for the revision of the Rules, other than referring to relevant international standards on sustainability disclosure, it also took into account the characteristics of domestic industries to formulate norms applicable to domestic enterprises. In addition, the TWSE prepared a Q&A set in line with the newly established indicators to provide more specific explanations, with a view to reducing uncertainty about the application by enterprises; the TWSE also provides reference practical guidance and examples for the disclosure of climate related financial information. Enterprises can visit the Corporate Governance Center \ Rules and FAQs \ FAQs (https://cgc.twse.com.tw/lawQa/listCh) and Corporate Governance Center \ ESG \ References (https://cgc.twse.com.tw/responsibilityRef/listCh) for more information.