General Explanation of the Amendments to the Regulations Governing Establishment of Internal Control Systems by Public Companies (2024-04-22)

This is an explanation from the Financial Supervisory Commission (FSC) responding to global ESG trends. To enhance the quality of sustainability information disclosure, it amends Articles 8 and 13 of the Regulations, stipulating that public companies must formally incorporate the management of sustainability information (e.g., ESG) into their internal control systems and include it as a required item in their annual audit plans.

With increasing ESG demands from global supply chains, this amendment directly aligns with the FSC's "Sustainable Development Action Plans" and its roadmap for adopting IFRS Sustainability Disclosure Standards. Companies failing to integrate sustainability information into their internal controls may face regulatory penalties, and inaccurate or incomplete disclosures could damage investor confidence, jeopardize supply chain orders, and even lead to legal risks.

This amendment is directly related to International Financial Reporting Standards (IFRS) for sustainability, such as IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures), requiring internal controls to produce reliable sustainability data. It also closely links to international standards for risk management (ISO 31000), environmental management (ISO 14001), social responsibility (ISO 26000), and corporate governance frameworks like COSO, ensuring the integrity and reliability of ESG information.

Winners Consulting is Taiwan's first firm to integrate ERM, industrial engineering, technology law, and data science. Our cross-disciplinary team (including tech lawyers, ISO Lead Auditors, and AI experts) not only establishes compliant internal controls but also vertically integrates sustainability management with existing ISO systems and corporate governance. This avoids redundant structures, ensures ESG data accuracy and legal compliance, and achieves true preventive risk management.