The Taiwan Monthly

Jul. 2024

ESG

The Taiwan Stock Exchange has revised the sample template of the “Reference Items for Assessing the Effectiveness of Internal Control Systems” to strengthen the company’s management of sustainability information

In compliance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and the “Evaluation Items for Assessing the Effectiveness of Internal Control Systems of Public Companies” revised by the Financial Supervisory Commission on April 22, 2024, TWSE and TPEx listed companies should incorporate the management of sustainability information into their internal control systems, and include it as an audit item in their annual audit plans.

 

After referring to the practical practices of sustainability information management at home and abroad, the development trend of internal control for sustainability information, and the “ACHIEVING EFFECTIVE INTERNAL CONTROL OVER SUSTAINABILITY REPORTING (ICSR):Building Trust and Confidence through the COSO Internal Control—Integrated Framework”, the TWSE and the Taipei Exchange (hereinafter referred to as the TPEx) jointly revised the sample template of the “Reference Items for Assessing the Effectiveness of Internal Control Systems” to assist enterprises in establishing an internal control system for sustainability information management based on practical situations.

 

In addition, the primary goal for enterprises in improving their sustainability information is to cultivate a sustainable corporate governance culture. The TWSE has established the “Sample Template for XXX Co., Ltd. Sustainable Development Committee Charter” to guide enterprises to establish their sustainable development committees (Chief sustainability Officer). The TWSE encourages enterprises through the corporate governance evaluation to have the sustainability reports they prepare approved by the board of directors before submission. This is done to strengthen the supervisory function of the board of directors on sustainable governance, and guide enterprises to deepen sustainable governance from top to bottom.

 

The TWSE and the TPEx are expected to hold four advocacy meetings on the “Internal Control System for Sustainability Information Management” in July 2024. The main focus of these meetings will be the internal control system for sustainability information management. Relevant resources, such as the regulations and disclosure examples of sustainability information, are disclosed on “Corporate Governance Center” (https://cgc.twse.com.tw/) or “IFRS Sustainability Disclosure Standards Alignment Area” (https://isds.tpex.org.tw/IFRS/). These resources are intended to assist enterprises in improving the management practices of sustainability information and refining the disclosure of sustainability information. The goal of these efforts is to jointly move towards the net zero goal of 2050.

 

For further information, please contact Ms. Chen at 1297@twse.com.tw