To enhance the comparability of sustainability-related financial information (“sustainability information”), strengthen investor confidence, attract sustainable capital, and accelerate Taiwan’s corporate sustainability transition and net-zero commitments, the Financial Supervisory Commission (“FSC”) released, on August 17, 2023, the Roadmap for Taiwan Listed Companies to Align with IFRS Sustainability Disclosure Standards (the “Roadmap”).
  The FSC announced that, beginning with fiscal year 2026, TWSE- and TPEx-listed companies will adopt the IFRS Sustainability Disclosure Standards endorsed by the FSC (the “Sustainability Standards”) in three phases, based on paid-in capital.
  In line with the Roadmap, the FSC is amending the Regulations Governing Information to be Published in Annual Reports of Public Companies (the “Annual Report Regulations”). The key points of the amendment include:
1.    Dedicated sustainability section: TWSE- and TPEx-listed companies must include in their annual reports a dedicated section titled “Sustainability-related Financial Information” (the “sustainability section”), prepared in accordance with the Sustainability Standards.
2.    Board approval: Information disclosed in the sustainability section shall be reviewed and approved by the board of directors.
3.    Consistency with financial reports: The reporting entity, reporting period (including comparative periods), information quality, and the data and assumptions used in the sustainability section shall be consistent with those in the financial reports.
4.    Core disclosure content and transition provisions: The sustainability section shall cover governance, strategy, risk management, and metrics and targets. Transitional provisions will apply in the first year of adoption; for example, companies may initially disclose only climate-related information and are not required to present comparative information for prior periods.
5.    Assurance requirements: Information on Scope 1 and Scope 2 greenhouse gas (GHG) emissions shall obtain independent third-party assurance in accordance with FSC requirements and be publicly disclosed.
6.    Filing timeline: As a general rule, the annual report shall be filed concurrently with the financial report. If simultaneous filing is not feasible, the sustainability section may be submitted first, with the complete annual report filed before the shareholders’ meeting.
  Methodology for Greenhouse Gas Measurement and Scope 3 Disclosure Timeline
  Regarding the methodology for measuring GHG emissions and the disclosure timeline for Scope 3 emissions, the FSC sought public input through the IFRS Sustainability Disclosure Standards Endorsement Advisory Team (the “Advisory Team”).
  The Advisory Team—comprising representatives from relevant ministries and agencies (including the Ministry of Environment and the Ministry of Economic Affairs), first-phase listed companies, sustainability-related industry associations, the Big Four accounting firms, assurance bodies, and academic experts—conducted extensive discussions and submitted a recommendation report to the FSC for policy evaluation.
  The FSC adopted these recommendations, refined the draft amendments to the Annual Report Regulations, and will issue the following related requirements by letter or order:
1.    Measurement methodology: As there are no material differences between the GHG Protocol and ISO 14064-1 methodologies for Scope 1 and Scope 2 inventories, TWSE- and TPEx-listed companies aligning with the Sustainability Standards—except for emission sources already regulated by the Ministry of Environment—shall uniformly apply the GHG Protocol to calculate GHG emissions and disclose them in accordance with the Sustainability Standards. To facilitate corporate transition, companies may apply the transitional measures provided in the Standards, allowing use of a non-GHG-Protocol methodology in the first year of adoption.
2.    Scope 3 transitional relief: Considering that listed companies and their value-chain suppliers are not yet fully prepared to disclose Scope 3 GHG information, that the GHG Protocol revision is expected in 2027, and referencing international timelines, the FSC will allow companies to omit Scope 3 disclosures for the first three fiscal years of initial application. This extends the transitional relief by two additional years, providing sufficient time to establish data systems and train personnel. For example, first-phase companies aligning in 2026 may begin disclosing Scope 3 emissions for fiscal year 2029, to be reported by March 2030 alongside financial statements.
     Support Measures for Implementation
1.    To ensure smooth alignment with the Sustainability Standards, the FSC established a dedicated implementation team in August 2023 to help reduce adoption costs.
2.    The team has: 
- Completed a Traditional Chinese translation of the Sustainability Standards, available for download on the Securities and Futures Bureau website; 
- Compiled Frequently Asked Questions (FAQs), sample implementation plans, practical guidance, and industry reference examples for IFRS S2 Climate-related Disclosures; and 
- Conducted extensive outreach programs.
  All related resources are available on the dedicated website for alignment with the IFRS Sustainability Disclosure Standards: 
https://isds.tpex.org.tw/IFRS/front/#/main/home

Contact
  Section Chief, Shirley (Mu-Yun) Huang
Accounting and Auditing Supervision Division, Securities and Futures Bureau
Tel: (02) 2774-7124
For inquiries, please submit feedback through the FSC public opinion box