The Taiwan Monthly

ESG

TWSE releases reference examples and self-assessment form of IFRS sustainability disclosure standards S2 “Climate-related Disclosures” to help enterprises comply with International standards

The Financial Supervisory Commission’s “Roadmap for Taiwan Listed Companies to Align with IFRS Sustainability Disclosure Standards” states that IFRS Sustainability Disclosure Standards will apply to TWSE and TPEx listed companies in three phases based on capital size, starting in 2026. At present, the International Sustainability Standards Board has issued two standards: IFRS S1 “General Requirements for Disclosure of Sustainability-related Financial Information” and IFRS S2 “Climate-Related Disclosure.” The framework is based on the TCFD (Task Force on Climate-Related Financial Disclosures) recommendations, which includes the four core contents of “Governance, Strategy, Risk Management, plus Metrics and Targets.” A similar disclosure framework for “Climate-related Information” is already included in annual and sustainability reports, which enterprises can use to enhance sustainability disclosure aligned with these standards.

 

The TWSE stated that it has released IFRS S2 disclosure examples for the “steel manufacturer” and “hardware” industries on its “IFRS Sustainability Disclosure Standards Platform.” These examples provide a framework to help enterprises internally prepare and compile sustainability-related financial information. Enterprises may also use a “Self-assessment Form – Using Steel Manufacturers as an Example,” to review the completeness of climate-related information disclosures after they are completed. In the future, the TWSE will continue to issue IFRS S2 practice guidelines and disclosure examples to help industries comply with the standards.

 

To ensure the smooth implementation of the IFRS Sustainability Disclosure Standards for companies in the first stage (with a paid-in capital of NTD10 billion or more) in 2026 and completion of disclosures by March 16, 2027, the TWSE released reference examples in July 2024. Companies are required to establish a task force and report implementation status to the board quarterly, submitting a progress report to the TWSE within 15 days after the end of each quarter. The TWSE reminds companies in the first stage to complete their first filing by April 15, 2025, and advises early preparation.

 

By introducing the Sustainability Disclosure Standards, enterprises can thoroughly assess their own sustainable development status and that of their value chains, identify climate change-related risks and opportunities, enhance risk management, explore potential business prospects, and adjust their operating models for proactive planning that supports long-term growth. Additionally, the public disclosure of sustainability-related financial information allows investors to clearly understand enterprises’ strategic direction, resource allocation, and market adaptability, potentially enhancing their market confidence and corporate value.

 

For further information, please contact Ms.Li at 1180@twse.com.tw.