With the global ESG movement expanding and in response to the Financial Supervisory Commission’s sustainable finance policies, the R. O. C Bills Finance Association (hereinafter referred to as the “Association”) has promoted the sustainable commercial paper principle. The Association has actively developed relevant market regulations and, in August 2025, formulated the Self-Regulatory Guidelines for Sustainable Commercial Paper, promoting corporate involvement in sustainability. TDCC fully supports this initiative by providing robust operational procedures and services to facilitate the implementation of the principle.

According to the Association’s Self-Regulatory Guidelines for Sustainable Commercial Paper, sustainable commercial paper is classified into four categories: 1. Green Commercial Paper, 2. Social Commercial Paper, 3. Sustainability Commercial Paper, and 4. Sustainability-Linked Commercial Paper. Among the commercial papers, categories 1 to 3 are collectively known as Sustainable Use of-Proceeds Commercial Paper, meaning the funds raised have clearly defined uses and are allocated to designated projects that generate tangible environmental improvements or meaningful social benefits. Category 4, Sustainability-Linked Commercial Paper, refers to the commercial papers whose payment terms are tied to the issuer’s sustainability performance targets. Issuers of this type of commercial paper must establish Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) to ensure that issuers integrate sustainable development into their business strategies and operating models.

Figure: Categories of Sustainable Commercial Paper

As a core infrastructure provider to the bills market, TDCC offers stable, highly efficient back-office registration and settlement services. TDCC is committed to developing a comprehensive, fully digital management system for sustainable commercial papers to support smooth market operations. Related services include enabling issuers to upload project plans, assessment reports issued by designated evaluation agencies, and post-issuance reports. Underwriters are responsible for verifying these materials to ensure accuracy and operational security. In addition, relevant information on sustainable commercial paper is available for buyout investors to review, safeguarding their rights and interests.

The promotion of sustainable commercial paper not only helps guide enterprises to obtain short-term financing from the bills market for their sustainability projects, but also injects innovative momentum into the market and steers Taiwan’s bills market toward sustainable finance. Meanwhile, for investors, sustainable commercial paper offers ESG-aligned investment instruments that support responsible investment and address the growing demand for sustainable investment options. The sustainable commercial paper service was launched on October 20, 2025. As issuances begin to take place, they are expected to carry significant signaling value for Taiwan’s sustainable finance market, encouraging more enterprises to engage in sustainability transitions and collectively directing market capital toward sustainable development.