The Taiwan Monthly

ESG

The TWSE has Released Practical Guidelines and Simplified Examples for IFRS Sustainability Disclosure Standard S2 “Climate-related Disclosures” to Assist Enterprises in Their Sustainability Actions and Align with International Standards

According to the “Roadmap for Taiwan’s Alignment with IFRS Sustainability Disclosure Standards” released by the Financial Supervisory Commission (FSC), domestic TWSE/TPEx listed companies must disclose their sustainability information by applying IFRS Sustainability Disclosure Standards in three phases based on their capital size. To assist enterprises in their scheduled alignment, the Taiwan Stock Exchange Corporation (TWSE) recently released the Practical Guidelines for IFRS Sustainability Disclosure Standards to provide suggestions and guidance on how to implement the Standards and collect relevant information on the four core contents of “governance, strategy, risk management, plus Metrics and targets,” to assist enterprises in completing climate-related disclosures. At the same time, the TWSE has released the IFRS S2 “Simplified Examples – Using Iron & Steel Producers as Examples.” The content applies the principle of proportionality as permitted by the Standards and provides abundant qualitative disclosure information in a simplified manner for reference by enterprises. The guidelines and examples have been placed in the “Special Section for Alignment with IFRS Sustainability Disclosure Standards”

(https://isds.tpex.org.tw/IFRS/front/#/main/practicalGuidance/PG_example).

 

To ensure adoption of the IFRS Sustainability Disclosure Standards by companies in the first phase (with paid-in capital of over NTD 10 billion) in 2026, the TWSE, Taipei Exchange, Taiwan Futures Exchange, and the Taiwan Depository and Clearing Corporation jointly held four sessions of the “IFRS S2 Disclosure Practice Workshop” in Taipei, Hsinchu, and Kaohsiung. The first session will be held on April 28, 2025, covering topics including a gap analysis between current sustainability information and IFRS S2, how to connect the Practical Guidelines to the simplified disclosure example, and strategies for companies to respond to risks, opportunities, and financial impacts. Professional instructors from the Big Four accounting firms also conducted practical exercises on the sustainability information compilation process and scenario analysis. Companies are encouraged to register for and participate in the event. For registration, please visit the website of the Securities and Futures Institute:

https://webline.sfi.org.tw/workshop/default.asp?csn=735.

 

In order to comply with the FSC’s policy of aligning with the Sustainability Standards, the TWSE regularly holds meetings to discuss the challenges faced by enterprises in adopting the Standards, and has released an “IFRS Sustainability Disclosure Standards Q&A” to assist enterprises in implementing the Standards. In addition, the International Sustainability Standards Board (ISSB) established an “IFRS S1 and S2 Transition Implementation Group (TIG)” in 2023 to discuss issues raised by various sectors in the implementation of the Standards, and the TWSE has compiled relevant meeting minutes into a TIG Q&A. Both Q&As have been announced on the “IFRS Sustainability Disclosure Standards Alignment Area” for reference by enterprises.

 

In the future, the TWSE will continue to release IFRS S2 disclosure examples from other industries and hold relevant advocacy meetings to assist enterprises in complying with the standards and adopting them smoothly.

 

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