Insights

On 23 September 2026, the Financial Supervisory Commission (FSC) and Ministry of Environment announced changes to IFRS Sustainability Disclosure Standards coverage, reducing mandatory adoption among TWSE/TPEx-listed companies from 1,970 to around 560. Phase 3 companies need only disclose climate information for the first two years, with Scope 3 becoming voluntary. Phases 2 and 3 will be exempt from parent-only assurance, and the sustainability chapter filing deadline is proposed to extend to 14 days before the shareholders' meeting during transition. This article covers the four groups, annual timelines and preparation priorities.