Consultant Column

From sustainability reporting to carbon disclosure, comprehensively master IFRS S1 and S2 standards to enhance corporate transparency and sustainable competitiveness.

In 2020, Taiwan's Financial Supervisory Commission released the 'Corporate Governance 3.0 - Sustainable Development Roadmap,' centering on five pillars: 'Strengthening board functions to enhance corporate sustainable value,' 'Improving information transparency to promote sustainable operations,' 'Strengthening stakeholder communication to create good interaction channels,' 'Aligning with international standards to guide stewardship,' and 'Deepening corporate sustainability governance culture and providing diversified products.' This aims to help Taiwanese companies align with international sustainability trends. To more clearly define sustainability reporting, CSR (Corporate Social Responsibility) reports have been renamed to ESG (Environment, Social, Governance) reports or sustainability reports, better meeting the non-financial information needs of investment institutions and banks.

In recent years, ESG and CSR have become popular search terms, even appearing in Google's 2021 annual keyword queries. But what are they, how do they differ, and what's their relationship with corporate sustainable development? Let's break it down.