| dc.description.abstract | In recent years, the rise of the ESG movement has led to the emergence of global sustainable economic development. However, it has also sparked controversies over the authenticity of ESG information. First, this paper will discuss the necessity of establishing ESG information standards and the motives behind corporate disclosure of sustainability information. Second, to explore how to balance the contradiction between economic development and the realization of ESG goals caused by applying the concept of ESG to corporate governance and whether ESG demands belong to the means or the objectives of corporate governance, this paper compiles the systems and attitudes of the U.S. and the European Union on the disclosure of sustainability information and tries to find out from the viewpoints of different supervisors what is suitable for the future development of the relevant systems in Taiwan.
Furthermore, the mandatory disclosure system in our country has played a certain role in promoting the publication of sustainability reports. However, it has also brought about some disputes in a legal application, in particular, regarding the nature of sustainability reports, whether they constitute financial business information under Securities Regulation, whether the violations should incur liability under securities fraud laws, and the limitations of directors′ fiduciary duties about ESG issues. The authority for preparing sustainability reports mainly rests with accountants and their firms. However, considering the breadth of the ESG issue, it is worth exploring whether other professional capacities or qualifications may be required.
Lastly, Taiwan Financial Supervisory Commission has expanded the scope of publication of sustainability reports in 2024. However, the judicial practice on the application of relevant legal liabilities to ESG issues is still to be further clarified and explored. Therefore, this paper will analyze these issues and provide corresponding recommendations from the perspective of international trends, in the hope of promoting the development of the legal system of sustainability and perfecting Taiwan′s corporate governance system.
Keywords: ESG (Environmental, Social, And Governance), Non-Financial Information, Information Disclosure, Sustainability Reporting, Financial Misrepresentation, Fiduciary Duties of Directors. | en_US |