April 2024
2025 Mandate: Sustainability Reporting Mandatory for All Taiwan’s Listed Companies
March 2024
Aaron Chen and Andrew Huang
In alignment with Taiwan’s Financial Supervisory Commission’s mandatory policies and the global trend towards sustainability information disclosure, the Taiwan Stock Exchange Corporation has revised the “Taiwan Stock Exchange Corporation (TWSE) Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies (hereinafter “Rules”)” in the beginning of 2024. We hereby outline five key points as follows:
I. Approval of the Board of Directors
To strengthen the responsibility of listed companies and their boards in compiling the sustainability reports, the Rules imply that the sustainability reports should be approved through the board resolutions (Article 2 of the Rules).
II. Mandatory Sustainability Reporting Since 2025
Starting in 2025, all the listed companies, including those with paid-in capital below NTD 2 billion, are required to compile sustainability reports. Additionally, to align with international standards, the companies may disclose information in reference to industry indicators provided by the Sustainability Accounting Standards Board (SASB) (Article 3 of the Rules).
III. Enhancing the Disclosure of Sustainability Indicators
Currently, listed companies in the food, chemical, financial and insurance industries, as well as those with more than 50% of revenue generated from the catering business, must disclose sustainability indicators. The Rules expand this requirement to 11 additional industries, such as cement, plastics, and steel, with paid-in capital exceeding NTD 2 billion (Article 4 of the Rules).
IV. Section Dedicated to Climate-related Information
Listed companies are required to disclose climate-related information in a dedicated section. The section should cover (i) information on greenhouse gas measurement and assurance, and (ii) carbon reduction goals, strategies, and specific action plans, as per the timeframe below:
1. Starting in 2025: Listed companies with paid-in capital exceeding NTD 10 billion, and those in steel and cement industries;
2. Starting in 2026: Listed companies with paid-in capital over NTD 5 billion but less than NTD 10 billion; and
3. Starting in 2027: Listed companies with paid-in capital of less than NTD 5 billion (Article 4-1 of the Rules).
V. Filing Deadline: End of Each August
Considering the practical scheduling of listed companies in preparing sustainability reports and assurance engagements, the Rules stipulate that the sustainability reports should be filed by August 31 each year (Article 5 of the Rules).
Aaron Chen and Andrew Huang
In alignment with Taiwan’s Financial Supervisory Commission’s mandatory policies and the global trend towards sustainability information disclosure, the Taiwan Stock Exchange Corporation has revised the “Taiwan Stock Exchange Corporation (TWSE) Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies (hereinafter “Rules”)” in the beginning of 2024. We hereby outline five key points as follows:
I. Approval of the Board of Directors
To strengthen the responsibility of listed companies and their boards in compiling the sustainability reports, the Rules imply that the sustainability reports should be approved through the board resolutions (Article 2 of the Rules).
II. Mandatory Sustainability Reporting Since 2025
Starting in 2025, all the listed companies, including those with paid-in capital below NTD 2 billion, are required to compile sustainability reports. Additionally, to align with international standards, the companies may disclose information in reference to industry indicators provided by the Sustainability Accounting Standards Board (SASB) (Article 3 of the Rules).
III. Enhancing the Disclosure of Sustainability Indicators
Currently, listed companies in the food, chemical, financial and insurance industries, as well as those with more than 50% of revenue generated from the catering business, must disclose sustainability indicators. The Rules expand this requirement to 11 additional industries, such as cement, plastics, and steel, with paid-in capital exceeding NTD 2 billion (Article 4 of the Rules).
IV. Section Dedicated to Climate-related Information
Listed companies are required to disclose climate-related information in a dedicated section. The section should cover (i) information on greenhouse gas measurement and assurance, and (ii) carbon reduction goals, strategies, and specific action plans, as per the timeframe below:
1. Starting in 2025: Listed companies with paid-in capital exceeding NTD 10 billion, and those in steel and cement industries;
2. Starting in 2026: Listed companies with paid-in capital over NTD 5 billion but less than NTD 10 billion; and
3. Starting in 2027: Listed companies with paid-in capital of less than NTD 5 billion (Article 4-1 of the Rules).
V. Filing Deadline: End of Each August
Considering the practical scheduling of listed companies in preparing sustainability reports and assurance engagements, the Rules stipulate that the sustainability reports should be filed by August 31 each year (Article 5 of the Rules).
