A session promoting the “Sustainable Development Action Plans for TWSE- and TPEx- Listed Companies,” held by the Taiwan Stock Exchange (the TWSE) and Taipei Exchange (the TPEx) jointly, concluded successfully on April 27, attracting 650 attendees from listed companies to fully comprehend the sustainability policy and greenhouse gas (GHG) reduction practices, in order to facilitate GHG management and corporate sustainable development in Taiwan.

The session is meant to explain the "Sustainable Development Action Plans for TWSE- and TPEx- Listed Companies (2023)," unveiled by the Financial Supervisory Commission (the FSC) on March 28, and corporate governance- and ESG-related measures, recently put forth by the TWSE and TPEx. Representatives from the Preparatory Office for the Climate Change Agency, Ministry of Environment, and Chunghwa Telecom, an ESG paradigm, were invited to speak on GHG emission inventory and reduction practices, to help listed companies understand the latest policy and formulate GHG reduction transformation plan.

Ms. Kao Chin-Ping, Deputy Director-General of the Securities and Futures Bureau (the SFB), in her opening remarks pointed out that "As a concerted climate change-related action, the ‘Net Zero Emissions by 2050 Scenario (NZE)’ poses challenges but also opportunities for enterprises. The FSB will push listed companies to set GHG reduction targets and strategies, plus specific action plans in stages, enhance the quality of sustainability reports, intensify ESG information disclosure and digitalization, and establish a GHG reduction credit trading system, to encourage corporate input into net zero emission transformation.”

"Assistance for corporate sustainable development is a key TWSE mission," noted Chen Rebecca, TWSE Senior Executive Vice President, adding," Based on the framework of ESG information digitalization, ESG evaluation, assistance for corporate GHG emission inventory, and diversification of ESG products, the TWSE will integrate the resources of the securities market to strengthen industrial exchanges and cooperation plus help enterprises formulate GHG reduction transformation plans that comply with policy requirements, so that enterprises can proceed on a sustainability path steadily and march toward the common goal of net zero emission."

During the session, Lin Jessica, SFB Deputy Director, explained that the "Sustainable Development Action Plans for TWSE- and TPEx- Listed Companies (2023)" centers on the four key dimensions of “governance,” “transparency,” “digitalization” and “innovation,” calling for enterprises to internalize the spirit of sustainability governance with a top-down approach, intensifying communications with stakeholders to enhance transparency, execute sustainability strategy via digitalization and innovative method. It calls for the buildup of a framework with five major focuses, namely leading listed companies to reach net-zero, deepening companies’ sustainable governance culture, enhancing the disclosure of sustainable information, strengthening communication with stakeholders, and establishing ESG evaluation and ESG digitalization. The goal is to drive listed companies to march towards sustainability and increase international competitiveness.

Yu Tsung-Pu, TWSE Senior Vice President of the Corporate Governance Division, pointed to corporate governance- and ESG-related measures being pushed by the TWSE, including appointment of a corporate-governance chief, implementation of continuing education for directors, items being promoted via corporate-governance evaluation, and upcoming regulatory revisions, such as the requirement that at least one-third of board seats be occupied by independent directors and that there be at least one director of a different gender. He also explained TWSE's corresponding measures and contents of the ESG ecological system, specified in the "Sustainable Development Action Plans for TWSE- and TPEx- Listed Companies (2023).” The TWSE envisions the construction of a capital-market ESG ecology, the establishment of an automated platform for producing sustainability reporting, pushing corporate GHG emissions inventory and disclosure, and enhancement of ESG visibility among small- and medium- enterprises.

Kuo Meng-Yun, Deputy Director of the Emission Management Division, Preparatory Office for the Climate Change Agency, Ministry of Environment, explained climate change-related challenges and international net zero emission trends and summarized the “Climate Change Response Act” and the measures for emission reduction, with a particular emphasis on Chapter 4, which is most directly related to business operations. Major tasks include positioning GHG emission sources with international trends, identifying their scopes, conducting emission inventories, and graded verification management. The Taiwan government will employ such GHG control measures as carbon-fee levy and reduction credits trading, with carbon-fee revenue to be incorporated into a GHG Management Fund, to augment carbon-reduction benefits. To strengthen climate management, various subsidiary laws of the "Climate Change Response Act" are being planned.

Huang Chih-Hsiung, Vice President of Chunghwa Telecom, reported on the company's long-standing measures for pushing net zero emission transformation, including institution of an in-house carbon-fee mechanism, employment of energy-conserving equipment, elimination of the 3G network, increase of renewable-energy transfer supply, and setup of PV power devices, plus rallying key suppliers for the establishment of a green-supply chain alliance. The company also plans to apply intelligence technology in various fields, thereby helping the government and enterprises march towards sustainability and digital transformation, creating a favorable business environment for itself and others plus intensifying collaboration for materialization of not only net zero emission but also new digital business opportunities.

The promotional session has elicited a warm response from listed companies, and attracted the attendance of many directors and corporate-governance chiefs. Recordings of the promotional session will be available on Webpro. For more information, please visit the Corporate Governance Section on Webpro 3.0 or click here https://webpro.twse.com.tw/webportal/vod/115/?categoryId=150.