FSC Launches Workshops to Help 119 Companies Adopt IFRS Sustainability Standards Next Year

(CNA, Taipei, May 21, Reporter Su Si-yun) The Financial Supervisory Commission (FSC) stated today that domestic listed companies will adopt the IFRS Sustainability Disclosure Standards in three phases based on their paid-in capital, starting from the 2026 fiscal year. The first phase, involving 125 companies, began applying the sustainability standards this year to prepare sustainability-related financial information. The second phase, comprising 119 companies, will start its application next year. The FSC will facilitate experience sharing through various workshops to assist these companies with the transition.

According to the roadmap for Taiwan's adoption of IFRS Sustainability Disclosure Standards released by the FSC and the revised "Regulations Governing Information to be Published in Annual Reports of Public Companies" (Annual Report Regulations) amended last November, Taiwan's listed companies will adopt the standards in three phases based on paid-in capital starting from the 2026 fiscal year.

The first phase includes 125 companies with paid-in capital of NT$10 billion or more, which have started applying the sustainability standards this year. The second phase consists of 119 companies with paid-in capital between NT$5 billion and NT$10 billion, which will begin application next year.

To help the second-phase companies transition smoothly, Huang Chung-Hao, Deputy Director-General of the FSC's Securities and Futures Bureau, stated that the FSC continues to oversee the "Task Force for Promoting the Adoption of IFRS Sustainability Disclosure Standards" to provide multiple resources. This includes holding four hands-on workshops in northern, central, and southern Taiwan from May to June, guiding the preparation and disclosure of sustainability information through practical guidance, disclosure examples, and hands-on exercises.

Furthermore, Huang pointed out that six workshops on greenhouse gas (GHG) inventory will be held from July to August this year. These workshops will focus on Scope 3 GHG information disclosure, which has been reported as more difficult to implement, and will be conducted by industry to help companies identify common inventory categories specific to their sector.

Additionally, according to the revised Annual Report Regulations, starting from the second year of applying the IFRS Sustainability Standards, listed companies must measure emissions according to the "Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard," except for emission sources managed by the Ministry of Environment, which will follow its prescribed methods. The workshops will also explain the relevant transitional differences.

Huang stated that considering the first-phase companies will begin identifying other material sustainability topics beyond climate-related information according to IFRS S1 "General Requirements for Disclosure of Sustainability-related Financial Information" starting next year, the task force will release IFRS S1-related guidance to help companies disclose sustainability-related financial information more comprehensively.