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The Financial Supervisory Commission promulgated the "Guidelines for Domestic Banks’ Climate Risk Financial Disclosure", under which banks shall disclose financial information on climate-related risks starting from the 2023

To promote the core strategy for the development of sustainable finance in the “Green Finance Action Plan 2.0” and strengthen the management of climate-related risks by domestic banks, the Financial Supervisory Commission (FSC) formulated the “Guidelines for Domestic Banks’ Climate Risk Financial Disclosure,” after taking account of the “Recommendations of the Task Force on Climate-related Financial Disclosures” released by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB), relevant regulations and guidelines issued by financial supervisory authorities in other countries, as well as the current status of banking practices in Taiwan. The Guidelines are expected to be implemented starting from 2022. Accordingly, domestic banks shall, beginning from 2023, perform the financial disclosure of climate-related risks for the previous year before the end of June each year.
The FSC stated that the "Guidelines for Domestic Banks' Climate Risk Financial Disclosure" require domestic banks to establish an appropriate climate-related risk and opportunity management mechanism based on their scale and nature of business and to disclose information on climate risks from the aspects of corporate governance, strategy, risk management, and indicators and goals. Also, banks shall set out internal rules and mechanisms to regularly review whether they comply with the requirements under the Guidelines. On the other hand, the FSC recognizes that the integration framework for climate-related financial disclosure and standard indicators needs to be developed stepwise. Therefore, the FSC, referring to international practice, allows banks to perform the disclosure regularly and use the "Comply or Explain" approach on matters they cannot disclose or cannot explicitly disclose at the initial stage of implementing the Guidelines. The FSC expects to guide domestic banks to increase their self-disclosure information year by year and strengthen each qualitative and quantitative content by providing such flexibility. 
To facilitate the compliance of domestic banks, the FSC has requested the Bankers Association of the Republic of China to form a special project team to develop a "Domestic Banks' Climate-Related Risk Management Practice Handbook" to assist domestic banks in successfully processing the related disclosures. Sustainable finance is the core policy for financial development. Through the formulation of the Guidelines, the FSC expects to improve the quality and transparency of domestic banks' ESG disclosure, including the climate-related disclosure, and drive the banking industry to review its risks and abilities in response to climate change to enhance operational resilience. Furthermore, the FSC expects to utilize the guidance of the mechanism in financial markets to give full play to the role and functions of the financial system in promoting the pursuit of sustainable development by the overall society.

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  • Update: 2021-12-23