The Taiwan Monthly

Jan. 2022

Corporate Governance

The TWSE amendment to strengthen the promotion of sustainable development by enterprises

The Taiwan Stock Exchange stated that to comply with the goal of the Financial Supervisory Commission's "Corporate Governance 3.0 - Blueprint for Sustainable Development," the "Corporate Social Responsibility Report" prepared by listed companies will be renamed the "Sustainability Report" as of today, and the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Sustainability Reports by TWSE Listed Companies,” the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies,” and Article 47 of the “Operating Rules of the Taiwan Stock Exchange Corporation” are also amended accordingly. 

 

In order to continuously promote enterprises to strengthen non-financial information disclosure, the revised “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies” has expanded the scope to include listed companies with a paid-in capital of above NTD2 billion but less than NTD5 billion, and makes it mandatory for them to prepare and file the Sustainability Report from 2023 onward. In addition, to enhance the quality of the Sustainability Report prepared by enterprises, indicators are set for the chemical, finance and insurance industries to strengthen their disclosure. From the next year (2022) onward, a third-party assurance of a CPA in accordance with the standards issued by the Accounting Research and Development Foundation shall be obtained for the preparation and filing of the Sustainability Report. A listed company shall also establish competent operating procedures for the preparation and verification of the report, and incorporate them into the company's internal control system. 

 

To harmonize the international development trends, strengthen the implementation of sustainable development of Taiwan's listed companies, and augment the disclosure of sustainability-related information, the “Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies” is renamed the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.” Relevant articles are amended to encourage enterprises to expand the concept of corporate social responsibility to the practice of sustainable development. 

 

For further inquiries, please contact Ms. Lin at 1185@twse.com.tw .