ESG

ESG (Environmental, Social, Governance) isn't just a trend; it's the core of sustainable business practices. Emphasizing ESG means integrating environmental sustainability, social responsibility, and sound governance into the heart of corporate strategy. This not only enhances a company's reputation but also boosts its competitiveness and long-term value. Strengthening ESG helps establish a resilient brand image, meeting the growing demands of investors and consumers for sustainability and social responsibility. It also mitigates risks and fosters long-term growth. In an era where corporate social responsibility is increasingly vital, prioritizing ESG isn't solely about profits; it's about shaping a better, more sustainable future.

ESG trends and opportunities

The Taiwan Sustainability Standards are set to come into effect in 2026, initiating reporting by 2027. The Financial Supervisory Commission (FSC) mandates 119 listed companies with over NT$10 billion in capital to publicly unveil their sustainability reports. This move aims to demonstrate sustainable growth and attract investments geared towards sustainability.

Guidelines on sustainability disclosure from the International Sustainability Standards Board (ISSB) are pivotal corporate information, contributing positively to Taiwan's ESG governance.

For businesses, compliance with these standards isn't enough; early disclosure and comprehension of an enterprise's sustainability performance are paramount. Future sustainability reports will necessitate disclosing sustainability-related data impacting the entire value chain.

Focusing on amalgamating sustainability opportunities and risk evaluations, fostering collaboration between financial and environmental management teams, and nurturing partnerships within the value chain will amplify the comprehensiveness of an enterprise's sustainability strategies and processes.

We advise companies to promptly evaluate and respond to key factors, including early sustainability report releases, broadening reporting boundaries to align with consolidated financial statements, and disclosing details regarding financial conditions and cash flows.