Has your Japan headquarters suddenly contacted you, saying that SSBJ compliance will be required starting this year and asking the Taiwan subsidiary to provide sustainability-related data?
For many Japanese companies in Taiwan, this is no longer an issue faced only by a small number of large corporations. It is becoming a practical challenge that more and more subsidiaries may be required to address. If the Japanese parent company is listed on the Tokyo Stock Exchange, even a relatively small Taiwan subsidiary may become part of the group-wide sustainability information collection process.
This article explains, in a straightforward manner, what SSBJ is, why Taiwan subsidiaries may be required to respond, and how to get started when there is not yet an accounting firm or professional advisor in place to provide support.
If you have just received instructions from your Japan headquarters and are looking for a practical way to put the requirements into action, this article is written for you.
1. What Is SSBJ? A Clear Overview of Japan’s Sustainability Disclosure Standards
Internationally, a new framework for sustainability-related financial disclosures has been developed by the ISSB, or International Sustainability Standards Board, under the IFRS Foundation. The core standards are IFRS S1 and IFRS S2, which aim to ensure that companies disclose sustainability-related risks and opportunities as matters that are financially material and comparable in importance to financial reporting.
Japan has developed its own sustainability disclosure standards based on this international framework. These standards are developed and issued by the SSBJ, the Sustainability Standards Board of Japan. In March 2025, the SSBJ issued its inaugural sustainability disclosure standards.
Taiwan is also moving toward alignment with IFRS S1 and IFRS S2. Its competent authorities are introducing sustainability disclosure requirements for TWSE- and TPEx-listed companies in phases. Taiwan’s Financial Supervisory Commission has announced that, beginning with fiscal year 2026, listed companies will adopt the IFRS Sustainability Disclosure Standards endorsed by the FSC in three phases.
Simply put, ISSB is the international standard setter, SSBJ represents Japan’s domestic sustainability disclosure standards, and Taiwan has its own implementation framework for alignment with IFRS S1 and S2. While all three are rooted in the same global movement, they differ in terms of scope of application, implementation timeline, and practical disclosure requirements.
Japan has developed its own sustainability disclosure standards based on this international framework. These standards are developed and issued by the SSBJ, the Sustainability Standards Board of Japan. In March 2025, the SSBJ issued its inaugural sustainability disclosure standards.
Taiwan is also moving toward alignment with IFRS S1 and IFRS S2. Its competent authorities are introducing sustainability disclosure requirements for TWSE- and TPEx-listed companies in phases. Taiwan’s Financial Supervisory Commission has announced that, beginning with fiscal year 2026, listed companies will adopt the IFRS Sustainability Disclosure Standards endorsed by the FSC in three phases.
Simply put, ISSB is the international standard setter, SSBJ represents Japan’s domestic sustainability disclosure standards, and Taiwan has its own implementation framework for alignment with IFRS S1 and S2. While all three are rooted in the same global movement, they differ in terms of scope of application, implementation timeline, and practical disclosure requirements.
2. Why Are Taiwan Subsidiaries Being Involved?
For Taiwan subsidiaries of Japanese companies, SSBJ may appear to be an issue that concerns only the Japan headquarters. In practice, however, if the headquarters is required to prepare sustainability disclosures at the group level, the Taiwan subsidiary is very likely to be included in the data collection process.
This is because a Japanese parent company, when disclosing sustainability information for the entire group, typically needs to consolidate data from its overseas operations, including energy consumption, greenhouse gas emissions, human resources, supply chain information, and governance-related data.
As a result, while the Taiwan subsidiary may not be the final reporting entity, it often becomes a frontline provider of the required information.
In other words, you may not be the person writing the final report, but you may very well be the first person expected to prepare the necessary data.
This is because a Japanese parent company, when disclosing sustainability information for the entire group, typically needs to consolidate data from its overseas operations, including energy consumption, greenhouse gas emissions, human resources, supply chain information, and governance-related data.
As a result, while the Taiwan subsidiary may not be the final reporting entity, it often becomes a frontline provider of the required information.
In other words, you may not be the person writing the final report, but you may very well be the first person expected to prepare the necessary data.
3. What Can You Do Now If You Do Not Yet Have an Accounting Firm Supporting You?
If your company does not currently have a regular accounting firm or professional advisor supporting this matter, there is no need to wait until every condition is in place before getting started.
For Japanese companies in Taiwan, the first priority is to establish a framework for data inventory and internal role allocation. Start by organizing the information that the Taiwan subsidiary can currently access, such as energy consumption, water usage, human resources data, business locations, supplier information, and existing management systems.
In practice, we recommend preparing a simple data inventory and classifying the information into three categories:
For Japanese companies in Taiwan, the first priority is to establish a framework for data inventory and internal role allocation. Start by organizing the information that the Taiwan subsidiary can currently access, such as energy consumption, water usage, human resources data, business locations, supplier information, and existing management systems.
In practice, we recommend preparing a simple data inventory and classifying the information into three categories:
- Data that can already be directly generated from existing systems
- Data that needs to be manually compiled
- Data that has not yet been established and needs to be strengthened going forward
This approach helps the company quickly understand the expected workload and makes it easier to coordinate later with the Japan headquarters, an accounting firm, or an external consulting firm.
If there is no dedicated ESG personnel within the company, it is advisable to appoint a single point of contact first. This person can coordinate communications with the headquarters and internal departments, helping prevent inconsistencies in data versions and explanations.
For many Japanese companies in Taiwan, SSBJ-related data often involves collaboration across multiple departments, including finance, general affairs, human resources, procurement, and plant or facility management. The earlier the company establishes an internal communication mechanism, the more time and effort it can save in the subsequent implementation process.
If there is no dedicated ESG personnel within the company, it is advisable to appoint a single point of contact first. This person can coordinate communications with the headquarters and internal departments, helping prevent inconsistencies in data versions and explanations.
For many Japanese companies in Taiwan, SSBJ-related data often involves collaboration across multiple departments, including finance, general affairs, human resources, procurement, and plant or facility management. The earlier the company establishes an internal communication mechanism, the more time and effort it can save in the subsequent implementation process.
4. Three Common Practical Challenges Faced by Japanese Companies in Taiwan
The first challenge is that the Taiwan subsidiary may not clearly understand what the Japan headquarters is asking for at the initial stage.
Some companies may only be asked to provide data on energy consumption and greenhouse gas emissions, while others may be required to submit broader information covering human capital, supply chains, governance systems, and other areas. If the scope is not clarified at the beginning, the subsidiary may end up preparing materials that do not meet the headquarters’ actual requirements.
The second challenge is that the necessary data is often scattered across different departments.
The finance department usually manages expense and payment data, human resources manages personnel-related information, general affairs manages facility and energy-related data, and procurement manages supplier information. Without a centralized point of contact, inconsistencies can easily arise in data definitions, calculation methods, and document versions.
The third challenge is that existing internal data was not originally designed for sustainability disclosure.
Many Japanese companies in Taiwan already maintain operational data for day-to-day business purposes, but such data may not be in a format that meets the sustainability disclosure requirements of the Japan headquarters. As a result, the company may need to reorganize data fields, standardize measurement units, and align reporting periods before it can respond properly.
This is why establishing the underlying data structure and management process at an early stage can make it much easier to respond to future requests from the Japan headquarters.
Some companies may only be asked to provide data on energy consumption and greenhouse gas emissions, while others may be required to submit broader information covering human capital, supply chains, governance systems, and other areas. If the scope is not clarified at the beginning, the subsidiary may end up preparing materials that do not meet the headquarters’ actual requirements.
The second challenge is that the necessary data is often scattered across different departments.
The finance department usually manages expense and payment data, human resources manages personnel-related information, general affairs manages facility and energy-related data, and procurement manages supplier information. Without a centralized point of contact, inconsistencies can easily arise in data definitions, calculation methods, and document versions.
The third challenge is that existing internal data was not originally designed for sustainability disclosure.
Many Japanese companies in Taiwan already maintain operational data for day-to-day business purposes, but such data may not be in a format that meets the sustainability disclosure requirements of the Japan headquarters. As a result, the company may need to reorganize data fields, standardize measurement units, and align reporting periods before it can respond properly.
This is why establishing the underlying data structure and management process at an early stage can make it much easier to respond to future requests from the Japan headquarters.
5. Service Advantages for Japanese Companies in Taiwan
For Japanese companies in Taiwan, real value does not lie merely in explaining technical terms. It lies in bridging the requirements from the Japan headquarters with the practical realities of the Taiwan subsidiary.
By understanding Japan’s SSBJ framework, Taiwan’s direction of alignment with IFRS Sustainability Disclosure Standards, and the way day-to-day operational data is organized at the subsidiary level, companies can complete their internal data inventory more efficiently and reduce the time spent on repeated clarification with headquarters.
This is the type of service advantage that Japanese companies in Taiwan truly need:
By understanding Japan’s SSBJ framework, Taiwan’s direction of alignment with IFRS Sustainability Disclosure Standards, and the way day-to-day operational data is organized at the subsidiary level, companies can complete their internal data inventory more efficiently and reduce the time spent on repeated clarification with headquarters.
This is the type of service advantage that Japanese companies in Taiwan truly need:
- Bilingual communication in Chinese and Japanese
- Understanding of the data logic required by Japan headquarters
- Support in organizing usable data held by the Taiwan subsidiary
- Ability to translate complex requirements into actionable implementation processes
For many companies, the challenge of sustainability disclosure is not only the regulatory framework itself. It is also about how quickly different entities within a cross-border group can align their understanding and move forward in practice.
This is precisely where Japanese companies in Taiwan often need external professional support.
This is precisely where Japanese companies in Taiwan often need external professional support.
6. Build the Data Structure First, and the Next Steps Will Move Faster
SSBJ is not merely a regulatory term. It is a new practical challenge that both Japanese companies and their overseas subsidiaries must address as part of the global trend toward sustainability disclosure.
For Japanese companies in Taiwan, rather than waiting for repeated requests from Japan headquarters, it is more effective to begin by conducting a data inventory, clarifying internal responsibilities, and appointing a single point of contact. Establishing this foundation early will make the entire process more manageable.
The more complete the underlying data structure is, the smoother the subsequent steps will be, whether the company is responding to Japan headquarters, sharing information with an accounting firm, or further developing its sustainability disclosure process.
Abbreviation Notes
For Japanese companies in Taiwan, rather than waiting for repeated requests from Japan headquarters, it is more effective to begin by conducting a data inventory, clarifying internal responsibilities, and appointing a single point of contact. Establishing this foundation early will make the entire process more manageable.
The more complete the underlying data structure is, the smoother the subsequent steps will be, whether the company is responding to Japan headquarters, sharing information with an accounting firm, or further developing its sustainability disclosure process.
Abbreviation Notes
- ISSB stands for International Sustainability Standards Board.
- SSBJ stands for Sustainability Standards Board of Japan.
- IFRS stands for International Financial Reporting Standards.
If your company has recently received a request from Japan headquarters to support SSBJ-related matters, or if you are looking for professional support with Japan–Taiwan communication, data inventory, and sustainability disclosure preparation, please feel free to contact Hall Chadwick Taiwan.