Listed Companies in Taiwan to Disclose GHG Emissions

The largest listed companies, as well as those in the steel and cement sectors, will have to disclose GHG emissions in their 2022 annual reports.

Taiwan’s Financial Supervisory Commission (FSC) has proposed a new roadmap to promote the sustainable development of listed companies.

Under the proposed roadmap, 163 listed companies (those with paid-in capital of more than TW$10 billion, as well as steel and cement companies) will need to start disclosing carbon emissions and power consumption in their 2022 annual reports and 2023 sustainability reports.

In addition, 101 companies (those with paid-in capital between TW$5 billion to TW$10 billion) would need to disclose their emissions in their 2025 reports, while a further 1,482 companies (those with paid-in capital of under TW$5 billion) would have to making similar annual disclosures in 2026.

The information would be audited by third-party institutions, FSC said, adding that it would ask the Taiwan Stock Exchange (TWSE) to establish a database for companies’ ESG information and assess their performance.

The FSC’s roadmap to promote the sustainable development of listed companies is underpinned by five core strategies:

  • Establish governance structures to promote sustainable development and the integration of ESG issues in risk management policies and strategy formulation
  • Establish a cooperation mechanism with Taiwan’s Environmental Protection Administration (EPA), the Ministry of Economic Affairs and other ministries to increase the capacity of verification agencies and improve the ability of enterprises to check their GHG emissions
  • Align with international standards including the IFRS Foundation’s International Sustainability Standards Board (ISSB), the EU’s Corporate Sustainability Reporting Directive (CSRD), and the Glasgow Financial Alliance for Net Zero (GFANZ)
  • Cultivate internal corporate talents at listed companies to promote the development and implementation of GHG inventory and information disclosure systems
  • Establish (by the TWSE) an ESG database and information sharing mechanism to promote ESG evaluation of listed companies

The proposed roadmap will be finalised in March 2022 following a consultation with stakeholders.

The new requirements are intended to help companies prepare for emissions reduction, ahead of stronger emissions regulations that will be released by the EPA in 2023.

The EPA is planning to draw up a carbon pricing mechanism to reach Taiwan’s 2050 net-zero emissions target. The mechanism will be introduced in the Greenhouse Gas Reduction and Management Act, which will be renamed the Climate Change Act.

Under the plan, businesses that emit more than 25,000 tonnes of carbon per year will be subject to a surcharge on said emissions. Such businesses account for about 80% of Taiwan’s total carbon emissions.

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