The Intersection of Sustainability: PLA and IFRS Initiatives in Taiwan

Alfred Tang

Alfred Tang

Aug 16, 20234 min read


The Intersection of Sustainability: PLA and IFRS Initiatives in Taiwan


In recent years, Taiwan has taken significant steps towards promoting sustainability in various sectors. Two key initiatives that have gained attention are the ban on certain types of plastic and the adoption of international financial reporting standards for sustainable disclosures. While seemingly unrelated, these initiatives share a common goal of fostering a more sustainable future for Taiwan. In this article, we will explore the reasons behind the ban on PLA (polylactic acid) plastics and the planned integration of International Financial Reporting Standards (IFRS) for sustainable disclosures in Taiwan.

1. The Ban on PLA Plastics:

Starting from August 1st, 2022, eight major types of establishments in Taiwan are prohibited from using PLA plastics. This ban has raised questions about why a supposedly "biodegradable plastic" like PLA is included in the ban. The issue lies in the treatment of PLA after use, as it often ends up in landfills, similar to traditional plastics that are not properly recycled. By categorizing PLA alongside conventional plastics, the recycling process of PLA is compromised, affecting its potential for secondary plastic use. Hence, it is evident that the responsibility for environmental friendliness of plastic materials goes beyond the material itself.

2. IFRS for Sustainable Disclosures:

In a separate development, Taiwan has announced plans to align with the International Financial Reporting Standards (IFRS) for sustainable disclosures. This move aims to enhance the quality and transparency of sustainable information in the country. The preliminary plan outlines that listed companies with a capital exceeding NT$10 billion will be required to prepare sustainable information by 2026 and disclose it to the public by 2027. This integration of IFRS emphasizes the importance of standardized reporting on sustainability performance, allowing investors and stakeholders to make informed decisions based on comparable data.

Connecting the Dots:

Although seemingly unrelated, the ban on PLA plastics and the adoption of IFRS for sustainable disclosures showcase Taiwan's commitment to sustainability across different sectors. By addressing the issues surrounding PLA plastics, the government aims to encourage the proper disposal and recycling of all plastics, including those considered biodegradable. This aligns with the broader goal of minimizing plastic waste and promoting a circular economy. Likewise, the integration of IFRS for sustainable disclosures signifies Taiwan's recognition of the importance of transparent and standardized reporting on environmental, social, and governance (ESG) factors. These initiatives together contribute to a more holistic approach towards sustainability.

Unique Insights:

While PLA plastics have been marketed as a more environmentally friendly alternative to traditional plastics, their true impact on the environment depends on their end-of-life management. The ban on PLA plastics highlights the need for proper waste management and recycling infrastructure to ensure the biodegradability potential of such materials is realized. Moreover, the adoption of IFRS for sustainable disclosures reflects the growing significance of ESG factors in investment decision-making. This move positions Taiwan as a frontrunner in promoting sustainable finance and attracting responsible investments.

Actionable Advice:

  • 1. Create awareness: It is essential to educate the public about the proper disposal and recycling of plastics, including PLA. Encouraging individuals to make informed choices and participate in recycling programs can significantly contribute to reducing plastic waste.
  • 2. Strengthen recycling infrastructure: To maximize the potential of biodegradable plastics like PLA, authorities should invest in robust recycling infrastructure. This includes establishing collection systems, sorting facilities, and promoting the use of recycled plastics in manufacturing processes.
  • 3. Enhance sustainability reporting practices: Companies should proactively adopt sustainable reporting practices aligned with international standards, such as the IFRS for sustainable disclosures. By doing so, organizations can enhance transparency, attract responsible investors, and contribute to the overall sustainability agenda.


Taiwan's ban on PLA plastics and the planned integration of IFRS for sustainable disclosures exemplify the country's commitment to building a more sustainable future. By addressing the challenges associated with plastics and improving reporting standards, Taiwan aims to create a circular economy and promote responsible investment. To achieve these goals, it is crucial for individuals, businesses, and the government to work together in raising awareness, improving recycling infrastructure, and adopting sustainable practices. Only through collective efforts can Taiwan pave the way towards a greener and more sustainable society.


  1. "8/1起八大類場所不可使用PLA,為何明明是「生物可分解塑膠」卻被禁用? - The News Lens 關鍵評論網", (Glasp)
  2. "新聞稿-我國規劃接軌國際財務報導準則(IFRS)永續揭露準則,提升永續資訊品質及透明度-金融監督管理委員會全球資訊網",,2&mcustomize=news_view.jsp&dataserno=202307060002&dtable=News (Glasp)

Want to hatch new ideas?

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)