Given the thriving development of Taiwan's capital market in recent years, securities and futures sectors have been advancing at a vigorous pace in recent years. Total pretax net profits of domestic securities, futures, and investment trust companies soared 70% to NT$139.9 billion in 2021. In addition to givebacks to investors and society, domestic securities and futures sectors have positioned with global ESG trends, formulating a sustainable market environment and a complete ESG ecological system.

The Financial Supervisory Commission (“FSC”) has announced "Transition Strategies of Sustainable Development for Securities and Futures Sectors" to sustain long-term growth. The strategy puts forth five major goals namely: perfecting the sustainable ecological system; upholding of the capital market's trading order and stability; strengthening of the self-discipline mechanism and resources integration of securities and futures sector; transitioning of securities and futures management and sectors; protecting the rights of investors or traders; and instituting fair and friendly services, to be attained via three implementation structures, 10 strategies, and 27 concrete measures:

1. Structure for sustainability governance: attainment via the four strategies of:  establishment of sustainability values and ESG (environmental, social, and governance) culture; information security system; accountability system for the board of directors and management; and assistance of functional committees for the board of directors in the fulfillment of the latter's duties, along with eleven concrete measures; 

2. Structure for exerting intermediary to facilitate corporate sustainability: attainment via the three strategies including: empowerment of underwriters and financial consultants to assist companies listed on the TWSE, TPEx, and Emerging Stock Market in materializing various sustainability and ESG programs; establishment of the mechanisms of self-discipline, incentives, and supervision by dealers, investors, mutual-fund managers, and discretionary-account managers for their ESG and responsible investing; and materialization of the practices of fair customer treatment and protection of such investors as senior citizens and the physically and mentally challenged, along with nine concrete measures.

3. Structure for sustainability information disclosure: attainment via the three strategies of: strengthening the capabilities for coping with climate-change risk; increasing disclosure of sustainability information; and perfecting channels for information disclosure and external communications, along with seven concrete measures.

The FSC aims to materialize the goals of the sustainability transition strategy in three years, via collaboration with securities and futures industry associations and supervisory institutions, including the Taiwan Stock Exchange, Taipei Exchange, Taiwan Futures Exchange, and Taiwan Depository & Cleaning Corporation.

The strategy is designed to boost the international competitiveness of domestic securities and futures sectors amid the surging sustainability current worldwide, as Taiwan has pledged to attain "carbon neutrality" by 2050, in line with the conclusion of the U.N. Climate Change Conference (COP 26) in 2021.

Contact unit: Securities Firms Division, Securities and Futures Bureau
Contact phone No. : (02)2774-7112
For any questions, please send e-mail to: FSCMAIL