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Amendments

Title：

Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies  CH

Amended Date： 2022.12.23 
Categories： Corporate Governance
Article Content Chapter Content Search Article No. Search Amended Article Legislative History Chinese

Title： Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies(2021.12.07)
Date：
Article 1     In order to assist companies listed on the Taiwan Stock Exchange Corporation ("TWSE") and Taipei Exchange ("TPEx") (collectively referred to as "TWSE/TPEx listed companies") to fulfill their corporate social responsibility initiatives and to promote economic, environmental, and social advancement for purposes of sustainable development, the TWSE and TPEx hereby jointly adopt the Principles to be followed by TWSE/TPEx listed companies.
    TWSE/TPEx listed companies are advised to promulgate their own sustainable development principles in accordance with the Principles to manage their economic, environmental and social risks and impact.
Article 2     The Principles apply to TWSE/TPEx listed companies, including the entire operations of each such company and its business group.
    The Principles encourage TWSE/TPEx listed companies to actively fulfill sustainable development in the course of their business operations so as to follow international development trends and to contribute to the economic development of the country, to improve the quality of life of employees, the community and society by acting as responsible corporate citizens, and to enhance competitive edges built on sustainable development.
Article 3     In promoting sustainable development initiatives, TWSE/TPEx listed companies shall, in its corporate management guidelines and business operations, give due consideration to the rights and interests of stakeholders and, while pursuing sustainable operations and profits, also give due consideration to the environment, society and corporate governance.
    TWSE/TPEx listed companies shall, in accordance with the materiality principle, conduct risk assessments of environmental, social and corporate governance issues pertaining to company operations and establish the relevant risk management policy or strategy.
Article 4     To implement sustainable development initiatives, TWSE/TPEx listed companies are advised to follow the principles below:
  1. Exercise corporate governance.
  2. Foster a sustainable environment.
  3. Preserve public welfare.
  4. Enhance disclosure of corporate sustainable development information.
Article 5     TWSE/TPEx listed companies shall take into consideration the correlation between the development of domestic and international sustainable development issues and corporate core business operations, and the effect of the operation of individual companies and of their respective business groups as a whole on stakeholders, in establishing their policies, systems or relevant management guidelines, and concrete promotion plans for sustainable development programs, which shall be approved by the board of directors and then reported to the shareholders meeting.
    When a shareholder proposes a motion involving sustainable development, the company's board of directors is advised to review and consider including it in the shareholders meeting agenda.
Article 7     The directors of a TWSE/TPEx listed company shall exercise the due care of good administrators to urge the company to perform its sustainable development initiatives, examine the results of the implementation thereof from time to time and continually make adjustments so as to ensure the thorough implementation of its sustainable development policies.
    The board of directors of a TWSE/TPEx listed company is advised to give full consideration to the interests of stakeholders, including the following matters, in the company's furtherance of its sustainable development objectives:
  1. Identifying the company's sustainable development mission or vision, and declaring its sustainable development policy, systems or relevant management guidelines;
  2. Making sustainable development the guiding principle of the company's operations and development, and ratifying concrete promotional plans for sustainable development initiatives; and
  3. Enhancing the timeliness and accuracy of the disclosure of sustainable development information.
    The board of directors shall appoint executive-level positions with responsibility for economic, environmental, and social issues resulting from the business operations of a TWSE/TPEx listed company, and to report the status of the handling to the board of directors. The handling procedures and the responsible person for each relevant issue shall be concrete and clear.
Article 8     TWSE/TPEx listed companies are advised to, on a regular basis, organize education and training on the promotion of sustainable development initiatives, including promotion of the matters prescribed in paragraph 2 of the preceding article.
Article 9     For the purpose of managing sustainable development initiatives, TWSE/TPEx listed companies are advised to create a governance structure for promotion of sustainable development, and establish an exclusively (or concurrently) dedicated unit to be in charge of proposing and enforcing the sustainable development policies, systems, or relevant management guidelines, and concrete promotional plans and to report on the same to the board of directors on a periodic basis.
    TWSE/TPEx listed companies are advised to adopt reasonable remuneration policies, to ensure that remuneration arrangements support the strategic aims of the organization, and align with the interests of stakeholders.
    It is advised that the employee performance evaluation system be combined with sustainable development policies, and that a clear and effective incentive and discipline system be established.
Article 10     TWSE/TPEx listed companies shall, based on respect for the rights and interests of stakeholders, identify stakeholders of the company, and establish a designated section for stakeholders on the company website; understand the reasonable expectations and demands of stakeholders through proper communication with them, and adequately respond to the important sustainable development issues which they are concerned about.
Article 12     TWSE/TPEx listed companies are advised to endeavor to utilize energy more efficiently and use renewable materials which have a low impact on the environment to improve sustainability of natural resources.
Article 17     TWSE/TPEx listed companies are advised to assess the current and future potential risks and opportunities that climate change may present to enterprises and to adopt related measures.
    TWSE/TPEx listed companies are advised to adopt standards or guidelines generally used in Taiwan and abroad to enforce corporate greenhouse gas inventory and to make disclosures thereof, the scope of which shall include the following:
  1. Direct greenhouse gas emissions: emissions from operations that are owned or controlled by the company.
  2. Indirect greenhouse gas emissions: emissions resulting from the utilization of energy such as imported electricity, heating, or steam.
  3. Other indirect emissions: emissions resulting from corporate activities that are not indirect emissions from energy, but are from other sources of emissions owned or controlled by the company.
    TWSE/TPEx listed companies are advised to compile statistics on greenhouse gas emissions, volume of water consumption and total weight of waste and to establish policies for energy conservation, carbon and greenhouse gas reduction, reduction of water consumption or management of other wastes. The companies’ carbon reduction strategies should include obtaining carbon credits and be promoted accordingly to minimize the impact of their business operations on climate change.
Article 28     TWSE/TPEx listed companies shall disclose information according to relevant laws, regulations and the Corporate Governance Best Practice Principles for TWSE/TPEx listed Companies and shall fully disclose relevant and reliable information relating to their sustainable development initiatives to improve information transparency.
    Relevant information relating to sustainable development which TWSE/TPEx listed companies shall disclose includes:
  1. The policy, systems or relevant management guidelines, and concrete promotion plans for sustainable development initiatives, as resolved by the board of directors.
  2. The risks and the impact on the corporate operations and financial condition arising from exercising corporate governance, fostering a sustainable environment and preserving social public welfare.
  3. Goals and measures for promoting the sustainable development initiatives established by the companies, and performance in implementation.
  4. Major stakeholders and their concerns.
  5. Disclosure of information on major suppliers' management and performance with respect to major environmental and social issues.
  6. Other information relating to sustainable development initiatives.
Article 29     TWSE/TPEx listed companies shall adopt internationally widely recognized standards or guidelines when producing sustainability reports, to disclose the status of their implementation of the sustainable development policy. It also is advisable to obtain a third-party assurance or verification for reports to enhance the reliability of the information in the reports. The reports are advised to include:
  1. The policy, system, or relevant management guidelines and concrete promotion plans for implementing sustainable development initiatives.
  2. Major stakeholders and their concerns.
  3. Results and a review of the exercising of corporate governance, fostering of a sustainable environment, preservation of public welfare and promotion of economic development.
  4. Future improvements and goals.
Article 30     TWSE/TPEx listed companies shall at all times monitor the development of domestic and foreign sustainable development standards and the change of business environment so as to examine and improve their established sustainable development framework and to obtain better results from the promotion of the sustainable development policy.