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Taiwan Adjusts ESG Disclosure Roadmap with Tiered Approach for Listed Companies
economic_daily · 2026-10-05
Taiwan’s FSC and Ministry of Environment have introduced a tiered ESG disclosure framework, easing requirements for SMEs while focusing on major emitters.
What Happened
Policy Shift: The Financial Supervisory Commission and the Ministry of Environment have announced a shift to a tiered approach for IFRS sustainability disclosure compliance. This strategy narrows the scope of mandatory full disclosure to approximately 560 companies, specifically targeting those with capital over NT$2 billion and major carbon emitters.
Operational Flexibility: The new framework provides significant flexibility, allowing companies in the third phase to phase in climate-related disclosures gradually. Furthermore, requirements for parent-only entity assurance have been waived, and reporting deadlines have been extended during the initial transition period to alleviate administrative burdens.
Market Impact: While the mandatory scope covers less than 30% of total listed firms, these companies represent over 87% of market capitalization and 96% of total Scope 1 and 2 emissions. This targeted approach ensures that systemic risks are addressed while allowing smaller firms more time to build their reporting capabilities.
Future Outlook: The government is coordinating cross-departmental support, including the expansion of carbon footprint coefficients and streamlined verification processes to reduce compliance costs. A comprehensive review is scheduled for 2030 to ensure the regulatory framework remains aligned with international standards and national net-zero goals.