56 2025 TSMA priced and distinguished from the generic, simplified life-cycle broad carbon footprint estimations. For governments worldwide, establishing disclosure systems to manage sustainability governance, energy resource uses, and greenhouse gas emissions at the corporate level will be beneficial in building an enabling sustainable environment with a more comprehensive and inclusive green finance system. In Taiwan, the scope of greenhouse gas emission inventory reporting regulated by the Climate Change Response Act or disclosure requested by the Financial Supervisory Commission is currently limited to Scope 1 (i.e., direct emissions) and Scope 2 (i.e., indirect emissions). According to the ‘General Requirements for Disclosure of Sustainability-related Financial Information’ (IFRS S1) and ‘Climate-related Disclosures’ (IFRS S2) proposed by the International Financial Reporting Standards (IFRS), Taiwan’s Financial Supervisory Commission stated in August 2023 that Taiwanese corporates will gradually adopt new disclosure rules starting in 2026, with Scope 3 emissions disclosures being mandated from 2027 to replace the current disclosure rules, including ‘Sustainability Accounting Standards Board Standards’ (SASB) and ‘Task Force on Climate-related Financial Disclosures’ (TCFD). Meanwhile, the disclosure contents will include how carbon pricing and assets are applied to achieve the corporation’s objectives. Multiple countries have also adopted or integrated the above disclosure standards into directives. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) will require large firms to adopt the European Sustainability Reporting Standards (ESRS) for Scope 3 emissions disclosures from upstream and downstream emissions starting in 2026 if involving climate change themes. Considering the management of products’ carbon footprints, applying more robust regulatory measures is foreseeing trends. The EU’s ‘Ecodesign for Sustainable Products Regulation’ (ESPR) has been officially legislated and will enter into force in July 2024 by replacing existing regulations to encourage and guide the industry to manufacture more sustainable products and enhance energy efficiency while promoting a circular economy and mandatorily requiring the disclosure of environmental and carbon footprints. Under the ESPR, a ‘Digital Product Passport’ (DPP) system will be introduced to disclose materials and sustainability information for products such as iron and steel, aluminum, textiles, chemicals, furniture, and information
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