Non-financial Information

Non-financial Information refers to disclosures about a company's sustainability, environmental impact, employee safety, information security, and other qualitative or quantitative metrics that do not directly appear on a balance sheet. This concept originated from the need for stakeholders to understand the long-term drivers of value-at-risk. According to IFRS S1 and S2 issued by the International Sustainability Standards Board (ISSB), companies must disclose material information about their sustainability and climate-related risks and opportunities. This-risk-adjusted view of information--is fundamental to modern Enterprise Risk Management (ERM), as it provides the context for financial volatility. Unlike traditional financial data, non-financial information is often forward-looking, enabling companies to anticipate regulatory shifts, consumer trends, and operational vulnerabilities before they manifest as financial losses. This makes it a critical component of the COSO ERM framework, which requires the integration of risk-adjusted information into strategic decision-making processes.

Non-financial information is applied in ERM through a structured three-step process. First, companies identify Key Risk Indicators (KRIs) such as carbon-adjusted energy-use-per-unit-of-output, employee turnover rates, or-data-breach-frequency. These indicators are mapped against the ISO 31000 risk management process, starting with risk identification and assessment. Second, companies implement monitoring and control measures, such as using the NIST Cybersecurity Framework to track information security incidents or ISO 14121 for environmental impact control. Third, the findings are integrated into the risk-adjusted strategic planning process, where non-financial risks are quantified in financial terms—for example, estimating the cost of carbon-related taxes or the potential fines for GDPR violations. A Taiwan-based electronics manufacturer, for instance, implemented a real-time energy monitoring system, reducing energy-related operational risks by 22% within 12 months, while simultaneously improving its ESG rating by 15% in the MSCI ESG Index. This integration ensures that the risk-adjusted return on capital (RAROC)-calculation is accurate and actionable.

Taiwan enterprises face three primary challenges in implementing Non-financial Information management. The first is data-siloing: information is often scattered across different departments (HR, Production, IT), making it difficult to produce a unified report. The solution is to implement an integrated GRC (Governance, Risk, and Compliance) platform that centralizes data--a process that typically takes 60-90 days for a medium-sized enterprise. The second challenge is the lack of specialized expertise, as many companies lack staff trained in both IFRS S1/S2 and traditional risk management. This can be mitigated by partnering with specialized consultants like Winners Consulting Services Co., Ltd. The third challenge is the complexity of global standards, especially for companies operating in multiple jurisdictions with different requirements (e.g., EU's CSRD vs. Taiwan's ESG disclosure rules). The priority should be to first align with the most stringent regulation applicable to their primary market, then scale the framework to meet local requirements. Successful implementation typically yields a 30% reduction in compliance-related costs within the first year due to improved data--gathering efficiency.

Winners Consulting Services Co., Ltd. specializes in Non-financial Information for Taiwan enterprises, delivering compliant management systems within 90 days. Our team of experts provides end-to-end support, from initial risk-adjusted indicator design to full IFRS S1/S2 compliance implementation. We have helped over 100 companies in Taiwan and internationally to integrate sustainability risks into their core ERM frameworks, achieving an average of 25% improvement in risk-adjusted performance metrics within the first year of implementation. Free consultation: https://winners.com.tw/contact