Sustainability information should explain effects on an organization’s prospects, not merely list risk names. Start with an operational issue, explain its links to the business model, resource allocation, and financial planning, then identify material information for disclosure.
When to begin
Listed companies preparing for adoption, organizations responding to investor requests, or teams integrating existing TCFD and financial information should first confirm the reporting entity, period, and local requirements. Retain data and assumptions during the reporting year instead of reconstructing them only at filing time.
Connect financial and sustainability information
Different operating assumptions across teams can disconnect risk descriptions from financial planning. Climate maps and scores need sources, periods, and methods to explain implications for a site; they should not be treated directly as expected loss amounts.
Standards and local arrangements
IFRS S1 addresses sustainability-related risks and opportunities reasonably expected to affect cash flows, access to finance, or cost of capital. IFRS S2 addresses climate-related physical and transition risks and opportunities. Governance, strategy, risk management, metrics, and targets need to connect, with applicable industry information considered.
Taiwan-listed and OTC companies are phased in according to paid-in capital, beginning with fiscal years 2026, 2027, and 2028, with filing in the following year. Companies without par value or with a par value other than NT$10 per share use a net-worth criterion. Assurance requirements apply to consolidated Scope 1 and 2 emissions; Scope 3 applies from the fourth fiscal year after initial adoption. Do not replace local rules with an international first-year relief provision.
Document the edition and transition relief used for each case. International effective dates for amendments to S2 greenhouse-gas disclosures and Taiwan early-adoption arrangements may differ. Confirm the FSC-recognized version, applicable relief, and related disclosures when preparing a formal report.
Suggested preparation stages
- Confirm applicable year, reporting entity, and edition; map annual reports, inventories, and strategy information.
- Trace risks and opportunities through the business model, recording materiality, time horizons, and impact pathways.
- Review scenarios, metrics, and financial assumptions; distinguish known data, estimates, and limitations.
- Prepare disclosure drafts and a source index, then plan finance, management, and board review and approval.
Information and possible outputs
Prepare reporting boundaries, financial and operating plans, climate risks, emissions, targets, and governance records. Possible work includes a requirements-gap review, responsibility map, impact-analysis file, and disclosure draft. Legal conclusions, independent assurance, and formal filing require separately defined roles.
Effort depends on consolidation scope, data maturity, scenario depth, and internal decision arrangements. Distinguish emissions inventory, financial analysis, disclosure, and assurance support; a single report deadline does not mean every process is complete.