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TCCS Joins Hands with Forest Service, Yushan Financial and EY to Promote More Ambitious Disclosure Framework

Series of Courses for Improving the Sustainable Competitiveness of Enterprises - Nature Related Financial Disclosure (TNFD) Framework and Enterprise Layout

After TCFD, the Taskforce on Nature-related Financial Disclosures (TNFD) actively advocated by representatives of governments around the world has gradually become an important framework, and the Financial Supervisory Commission (FSC) has gradually strengthened relevant standards and regulations. The content of the TNFD framework is more comprehensive, especially regarding biodiversity and ‘ecosystem services’. Therefore, on Wednesday March 15th, an ‘Improving the Sustainable Competitiveness of Enterprises’ session was held, inviting experts with rich experience in this field to explore relevant topics. This series of courses is planned by the Taiwan Center for Corporate Sustainability (TCCS) as an exclusive course for member companies, hoping to enhance the sustainable competitiveness of member companies and move towards net zero together. This course is hosted by the Standing Committee Member of TAISE Jiang Huiying.

Ernst & Young Accountant Zeng Yuzhe shared the analysis of TNFD nature-related financial disclosure standards. He first introduced international trends. The top four medium- and long-term risks of the World Economic Forum in 2023 are failure of climate change mitigation, failure of climate change adaptation, natural disasters and extreme weather events, and loss of biodiversity. It is hoped that TNFD can be used to systematically understand the relationship between these risks and enterprises, and to explore how people and the environment can coexist and socially prosper. Climate change and biodiversity are closely related and interdependent. However, there are currently no common indicators and concrete methods for biodiversity valuation. The scientifically-underpinned TNFD framework provides a framework and associated language to facilitate the financial industry’s understanding of nature. Businesses and societies depend on the services provided by natural assets, which in turn affect natural capital, creating risks and opportunities for financial institutions.
 
Zhang Qingyu, Senior Manager of Yushan Financial Holding Co. Ltd., who published the first TNFD report in the domestic financial industry, shared the impact of TNFD on businesses and Yushan's sustainable actions on the natural environment. Nature-based climate solutions have gradually become one of the most important strategies to achieve net zero targets internationally. In addition to reducing carbon emissions, they can also benefit the natural environment. With regards to exerting influence, Manager Zhang cited Yushan and National Taiwan University’s joint ESG centennial plan: 100,000 cypresses to protect Yushan. With a total of 100,000 plants planted, this will assist Xinyi Township to restore the now absent original strain of millet and drive local talent to return to their hometown, thereby reviving the Bunun millet industry and tribal culture.

Shi Zhijing, Chief of the Habitat Management Division3 of the Forestry Bureau Council of Agriculture (Executive Yuan), shared with us about biodiversity and the sustainable development of Taiwanese enterprises. Chief Shi shared the 23 goals in the Kunming-Montreal Biodiversity Framework proposed by the 2020 United Nations Biodiversity Conference (COP15). In this meeting, a blueprint for global biodiversity work in the next ten years was formulated to realize the 2050 vision: harmonious coexistence between humans and nature. In 1997, Taiwan established the National Sustainable Development Committee and began to promote our country's biodiversity initiatives. Although 42.5% of Taiwan's land area currently constitutes state-owned forests, shallow mountain and plain species are not adequately protected. For example, 55% of protected wild animals such as the leopard cat, and 64% of Taiwan's red list plant species, are distributed across shallow mountain plains less than 1000 meters above sea level. As a result, their conservation is bound to conflict with urban development and land ownership. Therefore, Chief Shi suggests that conservation strategies should go beyond just thinking about enclosure protection. For example, to promote a conservation axis across various places, stakeholders at different levels should take conservation measures that can be undertaken locally.

With increasing international attention to biodiversity, TAISE will hold the ‘Taiwan Biodiversity Award’ this year. The Deputy Executive Director of TCSA’s Taiwan Enterprise Sustainability Award, Zheng Qiyi, said that this award is used to encourage the public and private sectors to pay attention to this issue and actively participate in international initiatives to publicly disclose information on the dependence and impact on biodiversity. In addition, awards will also be used to recognize public and private sector institutions with outstanding achievements in biodiversity practice to promote biodiversity development. Moreover, on May 22nd, the International Day for Biological Diversity, the inaugural ‘Taiwan Biodiversity Forum’ will be held in conjunction with the awards ceremony, as a platform for discussion and exchange of related issues. In addition to demonstrating Taiwan's active participation in biodiversity issues, the forum also aims to contribute to biodiversity conservation internationally.

The question-and-answer section at the end of the session was well received. The companies actively raised questions, which the speakers individually answered. This demonstrates that Taiwan's industry, government and academic circles are paying attention to TNFD nature-related financial disclosure and biodiversity issues. Overall, the session was very informative, and the next ‘Improving the Sustainable Competitiveness of Enterprises’ session is scheduled to be held on April 27th, 2023. The theme will focus on ‘Global Carbon Tariff Market and CBAM Analysis (1) International Trends and Developments Context’. We welcome member companies and the general public to sign up and participate.

Photo Highlights

Image 1: TAISE Standing Committee Member Moderator Jiang Huiying (second from right), speaker Zeng Yuzhe from Ernst & Young (first from right), Senior Manager Zhang Qingyu from Yushan Financial Holding Co., Ltd. Group (first from left), Section Chief Shi Zhijing of the Habitat Management Section of the Conservation Bureau of the Bureau of Civil Affairs (second from left).
 

Image 2: TAISE Moderator and Standing Committee Member, Jiang Huiying, opened the session with an enthusiastic presence.
 

Image 3: Zeng Yuzhe, Accountant at Ernst & Young, shared his analysis on TNFD nature-related financial disclosure standards.
 

Image 4: Zhang Qingyu, Senior Manager of Yushan Financial Holdings Co. Ltd., shared the impact of TNFD on the company and Yushan's sustainable actions in the natural environment.
 

Image 5: Shi Zhijing, Chief of the Habitat Management Division of the Forestry Bureau Council of Agriculture (Executive Yuan), shared with us about biodiversity and the sustainable development of Taiwanese enterprises.
 

Image 6: Mr. Zheng Qiyi, Deputy CEO of the TCSA Taiwan Enterprise Sustainability Award, introduced the first Taiwan Biodiversity Award and Taiwan Biodiversity Forum.
 

Image 7: A group photo of all guests, showing enthusiastic participation and empty seats.
 

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