Taiwan’s Financial Supervisory Commission (FSC) has amended Articles 7, 10-1, and 23 of the “Regulations Governing Information to be Published in Annual Reports of Public Companies.” The amendments require certain listed and OTC-listed companies to include a dedicated chapter on “Sustainability-Related Financial Information” in their annual reports. This update aligns with Taiwan’s roadmap for adopting the IFRS Sustainability Disclosure Standards.
- Mandatory Sustainability Financial Disclosure Chapter
Under the revised Article 7, qualifying listed and OTC-listed companies in Taiwan —such as listed and OTC-listed companies with paid-in capital of NT$10 billion or more— must disclose “Sustainability-Related Financial Information” approved by the board of directors as a standalone chapter in their annual report. This elevates sustainability information to a core component of corporate financial disclosure and enhances overall transparency.
- Simultaneous Filing Requirement
Article 23 requires companies to submit their annual report on the same date as their annual financial statements. However, recognizing practical challenges, the FSC allows companies to first submit the chapter on sustainability-related financial information and subsequently file the complete annual report before the required deadline, typically before the shareholders’ meeting.
- New Article 10-1 Clarifies Reporting Principles
The newly added Article 10-1 outlines key provisions of the sustainability disclosure standards and clarifies differences between these requirements and existing sustainability reports. This helps companies better understand and comply with the new reporting framework.
These amendments improve the consistency and reliability of sustainability-related financial disclosures of Taiwan’s listed and OTC-listed companies, enabling investors to evaluate financial and sustainability information holistically. Companies are advised to begin preparing early to ensure compliance with the evolving regulatory environment.
