The Taiwan Monthly

ESG

The TWSE releases "Scope 3 Greenhouse Gas Accounting Guidelines and FAQs" to support companies in aligning with international sustainability disclosure trends

To support listed companies in aligning with the IFRS Sustainability Disclosure Standards, the Taiwan Stock Exchange (TWSE) has officially released the "Reference Guide and FAQs on Scope 3 Greenhouse Gas (GHG) Inventory" as a reference for conducting GHG inventory work. In accordance with the IFRS S2 Climate-related Disclosures requirements for disclosing GHG emissions, this guide is primarily based on the GHG Protocol Corporate Standard and the GHG Protocol Scope 3 Calculation Guidance. It focuses on the operational methods for Scope 3 inventory, assisting listed companies in completing Scope 3 assessments more effectively.

 

The guide outlines key principles of Scope 3 GHG inventory, including emission source identification, data integration, and base year management. It also explains quantification methods for 15 categories of Scope 3 emissions, such as supply chain emissions, product use-phase emissions, employee commuting, and business travel. Additionally, the guide compares the classification differences between the GHG Protocol and ISO 14064-1 and provides guidance on aligning with IFRS S2 to enhance the accuracy and transparency of disclosures. Since Scope 3 inventory is based on activities within a company’s value chain, which are closely related to industry characteristics, business operations, and geographical locations, companies must consider their specific activities and resource allocation when conducting their assessments.

 

The accompanying FAQ document addresses common issues encountered in the Scope 3 inventory process, including boundary setting, calculation methodologies, and data collection challenges. It also provides recommendations for handling sensitive information and dealing with data gaps. The FAQ content is compiled from practical questions raised during the 2024 the TWSE GHG Inventory Workshops and interactions with listed companies, as well as insights gathered through the TWSE’s surveys on the challenges faced by first-phase listed companies in aligning with IFRS sustainability disclosure standards.

 

To further enhance companies' Scope 3 inventory capabilities, the TWSE and the Taipei Exchange (TPEx) will continue organizing workshops in 2025. These workshops will provide participants with hands-on training in data collection, calculation methods, emission factor sources, and data management, helping them improve their inventory skills. Through practical case studies, companies will gain a deeper understanding of potential challenges in the inventory process and facilitate industry-wide knowledge sharing. The TWSE will also continue collecting corporate feedback and optimizing resources to assist listed companies in completing GHG inventories effectively.

 

The TWSE reminds listed companies that, according to the "Sustainability Development Roadmap for Listed Companies" and the "Sustainability Action Plan for Listed Companies," the timeline for conducting Scope 1 and Scope 2 inventories and setting carbon reduction targets is as follows. Companies with capital exceeding NT$10 billion and those in the steel and cement industries must complete consolidated inventory reports and establish carbon reduction targets, strategies, and action plans. Companies with capital exceeding NT$5 billion must complete individual corporate inventories. All GHG inventory and emission reduction information must be disclosed in annual shareholder reports and sustainability reports. The TWSE will continue to drive sustainability initiatives to support Taiwan in achieving its net-zero emissions goal.

 

For further information, please contact Mr. Yu at 1248@twse.com.tw.