Taiwan Depository & Clearing Corporation

In line with Taiwan’s 2050 Net-Zero Emissions policy and the global sustainability movement, the Taiwan Depository & Clearing Corporation (TDCC), in collaboration with the R. O. C Bills Finance Association (the Association), is proud to announce the official launch of the Sustainable Commercial Paper principle on October 20, 2025. This initiative marks a significant milestone in advancing sustainable finance in Taiwan.

As active participants in the financial market, bills finance companies play a crucial role in the allocation of credit resources. It is therefore essential that Environmental, Social, and Governance (ESG) principles be integrated into their credit and investment operations. Since taking office, Chairman of the Association Wea Chi-Lin has prioritized the promotion of sustainable commercial paper, recognizing that beyond publicly listed companies, Taiwan has 4,000 to 5,000 small and medium-sized enterprises (SMEs) issuing commercial paper. Embedding ESG values early into their business practices is a key focus of Chairman Wea's tenure, aiming to guide capital in the bills market toward sustainable development and encourage greater corporate engagement in the sustainability transition.

Traditional commercial paper, with its short maturities, high liquidity, and revolving issuance nature, presents unique challenges when aligning with sustainable finance objectives. To address this, the Association referred to guidance from the International Capital Market Association (ICMA) and professional accountants, recommending that companies establish a Sustainable Finance Framework incorporating commercial paper as a short-term financing tool to support long-term sustainability goals.

Now, with the implementation of the Sustainable Commercial Paper principle, companies have a clear pathway to align short-term funding with their sustainability plans. By preparing a Sustainable Development Plan, undergoing third-party evaluation, and obtaining confirmation from a Bills House, companies can issue sustainable commercial paper. This not only maintains their funding flexibility but also integrates sustainability into their financial strategy — truly a win-win solution.

To support this principle, TDCC has developed a user-friendly and intuitive platform to ensure a seamless issuance process for both Bills Houses and corporations. From transaction security and information disclosure to streamlined procedures, every aspect has been designed to reduce the burden on enterprises, allowing them to focus on sustainable operations and market growth. TDCC Chairman Dr. Bing-Huei Lin emphasized, “It is both our responsibility and honor to accompany enterprises on their path to sustainability. We look forward to more companies joining this movement and bringing fresh momentum to Taiwan’s sustainable development.”

The Sustainable Commercial Paper principle enables companies to secure funding for sustainability initiatives via the bills market, while also expanding the variety of sustainable financial instruments available. This represents a new chapter of opportunity for Taiwan’s bills market. Once launched, relevant information will be disclosed simultaneously on the FSC Sustainable Finance Platform: https://esg.fsc.gov.tw.