The capital market blueprint formulated by the competent authority has identified sustainable development as a primary goal, highlighting how trends such as climate change and net-zero emissions are increasingly shaping the development of capital markets. International advocacy for corporate green revenue is expected to become a key pathway for the next phase of capital market development. This will not only encourage enterprises to strengthen their green and sustainable operations but also serve as an important reference indicator for financial institutions and investors when making investment and financing decisions, providing a crucial driving force for guiding enterprises toward net-zero transformation.

In conjunction with “Green and Transitional Finance Action Plan” announced by Financial Supervisory Commission (hereinafter referred to as the FSC), in order to encourage companies to keep on path of green transformation, Taipei Exchange(TPEx) and Taiwan Stock Exchange(TWSE) established “Green Stock Designations”, which is a rule based on “Green Equity Principles” promulgated by World Federation of Exchanges, with reference to the experience of foreign exchanges that have issued green designations, and taking domestic industrial development into account.

By establishing a transparent and standardized green securities certification mechanism, the system helps listed companies disclose their performance in sustainable development and green economic activities to the market. It also demonstrates their commitment to green transformation, enhances investor confidence, and improves the efficiency of market resource allocation.

For more information on the application process, certification standards, and actual benefits, please refer to the “Green Stock Designations Factsheet”.

• Green Stock Designations Factsheet
• Green Stock Designations For Dummies

Green revenues are divided into light green revenue and dark green revenue according to their levels. Based on the criterion such as proportion of dark or light green revenue, revenue from fossil fuels shall not exceed a specific ratio, no ineligibility criteria, as well as do not significant harm (DNSH) to environmental or social security objectives, etc., “Green Stock Designations” are divided into “Level 1 Green Stock Designation” and “Level 2 Green Stock Designation”.

Evaluation criteria:

1. The applicable version of Taiwan Sustainable Taxonomy shall be the second edition. Nevertheless, where a company discloses relevant information and a new version of Taiwan Sustainable Taxonomy has been announced, expanding applicable industries or lowering technical screening criteria, the new standards shall prevail.
2. The conditions of DNSH to environmental or social security objectives shall be defined in accordance with the recognition standards prescribed in the second edition of Taiwan Sustainable Taxonomy. The assessment of these conditions shall be conducted as of the time the designations are issued.
3. The effective period of an SBTi short-term target aligned with the 1.5°C goal, and of achievements such as a CDP Climate Change Questionnaire grade, Green labels, Green Factory Label, or Cleaner Production Assessment, shall be consistent with the period of the data assessed. Notwithstanding the foregoing, where it can be clearly demonstrated that the data used in applying for such labels or international initiatives pertains to the year immediately preceding the evaluation period, this requirement shall not apply.
4. International initiative applicable standards: The SBTi standard corporate target validation route and the Small and Medium-sized Enterprises (SMEs) route shall both apply. With respect to CDP questionnaires, only the Full Corporate Questionnaire shall be applicable; the SME Corporate Questionnaire shall not apply.
5. Revenue refers to the net revenue base on most recent annual consolidated or individual financial report.
6. “Revenue derived from fossil fuel-related activities” mean revenue generated from any business activity involving the exploration, production, transportation, refining, or distribution of fossil fuels (oil, coal, or natural gas), or from fossil fuel-based power generation.

Economic activities are utilized to identify green revenues, aiming to evaluate whether a company’s core business operations align with sustainability objectives.

Economic activities that fall under the Taiwan Sustainable Taxonomy should prioritize the application of the technical screening criteria for both "general economic activities" and "enabling economic activities" as defined in the taxonomy. If these activities meet the relevant criteria and definitions, the corresponding revenue can be recognized as green revenue.

For more details on the standards and calculation methods for sustainable economic activities, please refer to the Taiwan Sustainable Taxonomy.

• Taiwan Sustainable Taxonomy (Released on 2024.12.31)
• Taiwan Sustainable Taxonomy

Considering that the current guidelines for identifying sustainable economic activities in Taiwan have yet to cover all domestic industries, and that the relevant technical screening criteria are based only on industry averages—making them relatively more lenient compared to the EU Taxonomy, which uses the top 10% of performers within each industry as the benchmark—the Green Securities Certification System seeks to align with international standards while also taking into account the actual development of Taiwan's industries.

To this end, the system adopts the world’s first sustainability classification framework—the EU Taxonomy—as the standard for determining green revenue, thereby broadening the range of applicable industries.

For more information on the EU Taxonomy standards, calculation methods, and trial tools, please visit the “EU Taxonomy Navigator” website.

A dual-track system is adopted. The trustee entrusted by both Taipei Exchange and Taiwan Stock Exchange actively evaluates issuers that publicly disclose green revenue, or the issuers submit application to be assessed.

The list of companies awarded Green Stock Designations is announced in December every year.

• Step 1

  Starting from August each year, the trustee evaluates the green revenue ratio of the assessed company based on publicly available information such as the company's annual report, sustainability report, and data submitted by the company during the application process. The evaluation is documented in the "Green Stock Designations Assessment Form".

• Step 2

  The trustee submits the "Green Stock Designations Assessment Form" to the assessed company for verification and ensures that any outstanding issues are resolved.

• Step 3

  Based on the verified "Green Stock Designations Assessment Form," the trustee issues the "Example of Green Stock Designations Assessment Report ," which includes details on the company's economic activities and their corresponding green revenue standards, as well as the company's participation in international initiatives. The report and related data are then submitted to the Green Securities Certification Review Committee for further evaluation.

• Step 4

  After the Green Securities Certification Review Committee reviews the "Green Stock Designations Assessment Form" and confirms that the company has not violated any disqualifying conditions, the list of companies awarded the Green Securities Certification for the year is announced in December. The certification is divided into two levels: "Level 1 Green Certification Label" and "Level 2 Green Certification Label." The validity of each label is one year, with a re-evaluation conducted annually.

• Application Resources
  • Green Stock Designations Assessment Form

• Q1: When will the Green Stock Designations officially take effect?

  The Green Stock Designations will be officially implemented in 2026.

• Q2: What is the scope of green revenue assessment under the Green Stock Designations?

  The green revenue assessment under the Green Stock Designations is based on either consolidated or individual financial statements. Companies are required to disclose relevant green revenue from subsidiaries in their public disclosures (if no subsidiaries exist, this does not apply).

• Q3: What do companies need to prepare to participate in the Green Stock Designations?

  The Green Stock Designations adopts a dual-track approach. The designated executing agency will evaluate the green revenue ratio of all listed companies using publicly available information. If a company qualifies for certification, the executing agency will proactively contact the company. Companies may also voluntarily complete a Green Stock Designations Assessment Form to apply for participation.

• Q4: What information must companies disclose publicly to qualify for certification?

  In accordance with the Green Equity Principles issued by the World Federation of Exchanges (WFE), the determination of green stocks must be based on publicly available information. Therefore, companies seeking certification should disclose relevant information demonstrating compliance with green revenue criteria—for example, the amount and proportion of revenue aligned with the Taiwan Sustainable Taxonomy or the EU Taxonomy.

• Q5：What is the scope of “public information” as defined under the Green Stock Designations? Does it include information disclosed on a company’s official website?

  For the purpose of assessing whether a company meets the certification criteria under the Green Stock Designations, “public information” refers to information that is disclosed in accordance with standardized disclosure frameworks and is publicly accessible to the market. This primarily includes sources such as annual reports, sustainability reports, and government open data platforms.
  Given that information disclosed on company official websites lacks standardized formats, update frequency, and scope of content, and to ensure objectivity and comparability in the assessment criteria, such information is, in principle, not included within the scope of “public information” as defined under this system.

• Q6: Will the designated executing agency charge companies a certification fee?

  No. The Green Stock Designations does not charge any fees to companies.

• Q7: After confirming the Green Stock Designations Assessment Form with the executing agency, how long does it take to receive the result?

  The results of the Green Stock Designations assessment will be announced in December each year.

• Q8: Is the Green Stock Designations valid for a certain period?

  Yes. The Green Stock Designations is valid for one year and is subject to annual reassessment.

• Q9: Under what circumstances can the Green Stock Designations be revoked?

  A company will lose its Green Stock Designations if, during the certification period, it:

  • Triggers any ineligibility criteria;
  • Violates the Do No Significant Harm (DNSH) principle under the Taiwan Sustainable Taxonomy by causing significant harm to the six environmental objectives or social safeguards;
  • Submits false or concealed documents or information in its application or renewal process; or
  • Undergoes a material change in business scope that results in non-compliance with the criteria for its certified level under the Green Stock Designations system.

  For further details, please refer to the Introduction to the Green Stock Designations.

• Q10：How can a company apply if its industry is not yet included in the Taiwan Sustainable Taxonomy?

  If an industry is not explicitly listed in the Taiwan Sustainable Taxonomy, companies are advised to first evaluate whether their operations qualify as enabling activities, and to compare equivalent sustainable activities under the EU Taxonomy. Finally, they should verify whether they have obtained any green labels recognized within the Taiwan Sustainable Taxonomy. If none of these conditions are met, the company may not be eligible to apply at this stage.

• Q11：If a company intends to apply for “dark green revenue” recognition through international initiatives such as SBTi or CDP, what are the specific requirements regarding pathway selection and questionnaire versions?

  If a company voluntarily adopts international initiatives to have its “light green revenue” recognized as “dark green revenue,” it must meet the following requirements:
  
  SBTi (Science Based Targets initiative): The company must submit a short-term emissions reduction target aligned with the 1.5°C pathway and obtain validation. Both the Standard Corporate Target Validation Route and the SMEs Route are acceptable.
  CDP (Carbon Disclosure Project): The company must achieve a rating of A- (Leadership level) or above in the most recent Climate Change Questionnaire. Only the Full Corporate Questionnaire is accepted. The SME Corporate Questionnaire is not applicable.
  
  The reason the CDP SME questionnaire is not accepted is that its design framework and scoring methodology differ from those of the full questionnaire. Under CDP’s scoring system, the SME version generally does not provide sufficient information for the review body to assess whether the company meets the “Leadership level (A-)” requirement under this system.

• Q12：How should revenue be recognized if a Green Factory Label expires at the end of the year or is obtained in the following year?

  In principle, the validity period of any label or certification should align with the period of the data being assessed. The recognition approach is as follows:
  
  Expiration at year-end: If the label remains valid during the assessment year (even if it expires at the end of that year), the revenue generated within the valid period may still be recognized as green revenue. Obtained in the following year: If the company formally obtains the label in the following year, but can clearly demonstrate that the application materials were prepared based on operational data from the assessment year (i.e., the preceding year), the requirement for a complete overlap of validity periods may be waived. In such cases, the revenue for that year may still be recognized as green revenue.

• Example of Green Stock Designations Assessment Form
• Example of Green Stock Designations Assessment Report