Taiwan

III. The state duty to protect human rights

B. Actions taken

• Voluntary commitment to implementation of international covenants (page 6)

‘[…] although Taiwan is not a member of the United Nations, it has nevertheless signed and ratified important United Nations human rights covenants in recent years, including the […] “Convention on the Rights of the Child” […].’

•   Business-related human rights safeguards in Taiwanese legislation (page 7)

‘The Taiwan government has already incorporated the […] “Convention on the Rights of the Child” […] into domestic legislation, so they can be directly applied as Taiwan law.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP2, Actions taken (page 39).

Appendix 1: Concrete steps taken by Taiwan to fulfil the state obligation to protect

• Taiwan’s commitment to human rights and international participation (page 23)

‘Regarding the ratification and the entry into force of important UN conventions, the Taiwan government has taken following actions:

[…]

The “Implementation Act of the Convention on the Rights of the Child” came into force on 20 November 2014. This convention uses international child rights protection norms as the benchmark to build an environment that protects all aspects of children’s physical and mental health.’

Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy

The state duty to protect

UNGP10

Actions taken (pages 50-51)

‘The Taiwan government has committed to fully implement human rights both at home and abroad. […]it has […] signed and ratified important United Nations human rights covenants in recent years, including the […] “Convention on the Rights of the Child” […].In addition, the Taiwan government has gone through the legislative process to incorporate these covenants and conventions into domestic law, and has periodically prepared national reports and submitted them for review by international experts.’

Read more about Children’s rights

Taiwan’s NAP does not explicitly cover this issue.

Read more about Conflict-affected areas

III. The state duty to protect

B. Actions taken

• Promoting human rights through government procurement operations (page 8)

‘[…] the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP5, Actions taken (page 44).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Government procurement (pages 25-26)

‘Article 70 of the “Government Procurement Act” stipulates that an entity conducting a procurement procedure for construction work shall stipulate the responsibility of the supplier for quality control, environmental protection, as well as workplace safety and hygiene, and shall also establish inspection procedures and standards for the major items of the construction work.

Article 70-1 of the “Government Procurement Act” stipulates that in conducting the planning or design of a construction project, an entity shall analyze the potential construction hazards with an eye to the scale and characteristics of the construction project, prepare the drawings and specifications related to safety and health in accordance with the “Occupational Safety and Health Act” and its secondary regulations, and quantify related safety and health expenditures. Such information, and the requirements of the supplier to arrange or take necessary preventive equipment or measures, shall be included in the governmental tender documentation at the bidding stage. Where an occupational accident occurs at the construction site due to lack (or poor quality) of safety and health equipment or facilities as required by regulations or contract, the supplier shall not only be punished pursuant to the “Occupational Safety and Health Act” and its secondary regulations, but shall also be dealt with according to the “Government Procurement Act” and the contractual provisions.’

Read more about Construction sector

III. The state duty to protect human rights

B. Actions taken

• Voluntary commitment to implementation of international covenants (page 6)

‘The Taiwan government has committed to fully implement human rights both at home and abroad. […] although Taiwan is not a member of the United Nations, it has nevertheless signed and ratified important United Nations human rights covenants in recent years, including the […]”Convention against Corruption.”’

• Business-related human rights safeguards in Taiwanese legislation (page 7)

The Taiwan government has already incorporated the […] “Convention against Corruption,” and other such UN covenants and conventions into domestic legislation, so they can be directly applied as Taiwan law.’

IV. The corporate responsibility to respect human rights

B. Actions taken

• Greater information transparency (page 13)

‘Since 2014, the Taiwan government has used legislation to require listed companies matching a certain description to prepare a CSR report each year, and as of 2020 our government — making reference to the non-financial disclosure rules and practices of financial markets around the world — has included […] corporate governance matters in its disclosure requirements in order to ensure that the key performance indicators in non-financial disclosures are more closely linked to the way a company is managed.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

[…] In response to the Taiwan government’s call for companies matching a certain description to prepare a CSR report each year, many private groups and organizations have also begun to assess the quality of CSR reports. For example: (a) A well-known magazine that has adopted the IFRS reporting standards carries out annual assessments of the quality of company CSR reports and presents awards to recognize the best ones. (b) There is a private think tank that collaborates with academia to issue the Taiwan Corporate Sustainability Awards each year, encourage the public to accept volunteer training and participate in the evaluation of enterprise sustainability reports and ESG comprehensive performance, spur enterprises to improve information transparency. Also, in response to the Sustainable Development Goals (SDGs), our government has set up a number of corporate excellence awards to recognize strong performance in such areas as transparency and business ethics, gender equality, and talent development. The purpose is to get companies to strengthen disclosure of non-financial information and implement human rights policies.’

C. Actions planned

• Advocate for disclosure of non-financial information (pages 14-15)

‘In addition to studying the feasibility of expanding the range of businesses subject to a compulsory requirement to prepare CSR reports, the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as the use of consumer information, the use of energy, waste handling, labor conditions, environmental protection, forced evictions, indigenous land rights, gender equality, and consumer protection measures — all of which are matters of concern to stakeholders). The goal of such a policy would be to ensure that businesses understand that the disclosure of non-financial information can make up for the shortcomings of financial information, thus enabling businesses to effectively identify and manage risks. This would facilitate the formulation of better business policies, and contribute to the achievement of forward-looking objectives, thus enabling the adoption of sustainable business practices.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

V. Access to remedy

B. Actions taken

• Actions taken

Extraterritorial jurisdiction (page 18)

‘With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company […]offers a bribe to a public servant from Taiwan or a foreign nation in connection with cross-border trade, investment, or other business activities (as referred to in Article 11 of the “Anti-Corruption Act”), the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed.’

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

•  Taiwan’s commitment to human rights and international participation (pages 23-24)

‘The “Act to Implement the United Nations Convention against Corruption,” which entered into force on 9 December 2016, was enacted in response to international trends and challenges in the fight against corruption. Our government issues periodic reports on the state of Taiwan’s implementation of the UN Convention against Corruption.’

• Promotion of corporate social responsibility (pages 26-28)

‘The government may incorporate legally binding non-financial reporting requirements to ensure that companies conduct human rights due diligence. Article 10, subsection 4, item E of the “Regulations Governing 27 Information to be Published in Annual Reports of Public Companies” provides that corporate governance reports shall address CSR elements, such as environmental protection, community participation, social contribution, social services & welfare, consumer rights, human rights, and health & safety.’

[…]

‘The Taiwan Stock Exchange (TWSE) has issued the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies,” and the Taipei Exchange (TPEx) has issued the “Taipei Exchange Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TPEx Listed Companies.” If a listed company is in any of the following circumstances, it shall prepare and file a corporate social responsibility report in Chinese according to these Rules: (a) the company is in the food industry, chemical industry, or financial industry; (b) no less than 50 percent of the company’s total operating revenue is derived from food and beverages; or (c) the company’s capital stock is not less than NT$5 billion. A listed company to which the above descriptions apply shall prepare a corporate social responsibility report for the preceding year, making reference to the Global Reporting Initiative (GRI) Standards and the Sector Disclosure documents issued by the GRI.’

[…]

‘To strengthen corporate governance, the TWSE and the TPEx have issued several codes of best practice, including the following:

“Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies”: Listed companies are expected to implement CSR measures to manage their economic and environmental risks and impacts.

“Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies “: Listed corporations are required to establish a corporate culture built upon good management and integrity. Corporations shall also consider the background of their suppliers. Corporations are expected to act with high integrity.

“Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”: Listed companies are expected to establish good corporate governance systems and respect the rights and interests of all stakeholders.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following: (page 33)

‘In order to promote the development of a sustainable investment environment, TWSE subsidiary Taiwan Index Plus Corporation and FTSE Russell jointly released the “FTSE4Good TIP Taiwan ESG Index,” the first ESG index that fully integrates environmental, social, corporate governance, and financial indicators in Taiwan.’

Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems

• Extraterritorial jurisdiction

Article 11 of the “Anti-Corruption Act” provides that a public servant who offers (in connection with cross-border trade, investment, or other business activities) to bribe a public servant from Taiwan, the Chinese mainland, Hong Kong, or Macao shall bear criminal liability, and the offender will be dealt with according to the provisions of the “Anti-Corruption Act” regardless whether the offense is punishable or not under the law of the land where the crime is committed.

Read more about Corporate law & corporate governance

III. The state duty to protect human rights

B. Actions taken

• Voluntary commitment to implementation of international covenants (page 6)

‘The Taiwan government has committed to fully implement human rights both at home and abroad. […] although Taiwan is not a member of the United Nations, it has nevertheless signed and ratified important United Nations human rights covenants in recent years, including the […]”Convention against Corruption.”’

• Business-related human rights safeguards in Taiwanese legislation (page 7)

The Taiwan government has already incorporated the […] “Convention against Corruption,” and other such UN covenants and conventions into domestic legislation, so they can be directly applied as Taiwan law.’

V. Access to remedy

B. Actions taken

• Actions taken

Extraterritorial jurisdiction (page 18)

‘With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company […]offers a bribe to a public servant from Taiwan or a foreign nation in connection with cross-border trade, investment, or other business activities (as referred to in Article 11 of the “Anti-Corruption Act”), the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed.’

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Taiwan’s commitment to human rights and international participation (pages 23-24)

‘The “Act to Implement the United Nations Convention against Corruption,” which entered into force on 9 December 2016, was enacted in response to international trends and challenges in the fight against corruption. Our government issues periodic reports on the state of Taiwan’s implementation of the UN Convention against Corruption.’

Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems

• Extraterritorial jurisdiction

Article 11 of the “Anti-Corruption Act” provides that a public servant who offers (in connection with cross-border trade, investment, or other business activities) to bribe a public servant from Taiwan, the Chinese mainland, Hong Kong, or Macao shall bear criminal liability, and the offender will be dealt with according to the provisions of the “Anti-Corruption Act” regardless whether the offense is punishable or not under the law of the land where the crime is committed.

Read more about Corruption

III. The state duty to protect human rights

C. Actions planned

• Continue promoting international human rights dialogue and cooperation (page 9)

‘Taiwan will continue to carry out human rights consultations and dialogue with the European Union. In the area of digital human rights, as talks with the European Union regarding a GDPR adequacy decision for Taiwan move forward, we will move methodically toward the establishment of an agency tasked with responsibility for promoting the protection of personal information.

In the future, Taiwan will continue seeking to strengthen international human rights dialogue and cooperation with more countries.’

Read more about Data protection & privacy

Taiwan’s NAP does not explicitly address this issue.

Read more about Development finance institutions

III. The State duty to protect human rights

C. Actions planned

• Continue promoting international human rights dialogue and cooperation (page 9)

‘In the area of digital human rights, as talks with the European Union regarding a GDPR adequacy decision for Taiwan move forward, we will move methodically toward the establishment of an agency tasked with responsibility for promoting the protection of personal information.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP9, Actions planned (page 49-50).

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human right

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following:

‘The Secure Online Shopping Association put forward a “Good 34 E-Commerce Code of Conduct.” The code’s purpose is to establish a self-regulated, orderly, fair, efficient, clear, and safe e-commerce environment that will ensure consumer rights and interests and build consumer confidence in e-commerce. The effort is also designed to promote the sound development of e-commerce, and seeks to optimize the welfare of both e-commerce operators and consumers.

Taiwan’s Asustek Computer, Acer Corporation, Hon Hai Technology, HTC, and TSMC are all members of the Responsible Business Alliance and follow the “Responsible Business Alliance Code of Conduct” to strengthen the management of supply chains.

Asustek, Acer, HTC, and TSMC are also members of the Responsible Minerals Initiative, which helps firms manage issues related to conflict minerals. This includes assistance in due diligence efforts.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions taken (page 46).

Read more about Digital technology & electronics sector

Read more about Energy sector

III. The State duty to protect human rights

B. Actions taken

• Promotion of international exchange and cooperation (page 6)

‘[…] In addition, Taiwan has inserted “CSR clauses,” “investment/environment/labor clauses,” and “general exceptions” into previously signed trade and investment agreements, so our government has taken concrete actions to safeguard human rights.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP9, Actions taken (page 49).

• Promoting human rights through government procurement operations (page 8)

… Taiwan has implemented regulations that include such measures, including the “Government Procurement Act,” “Resource Recycling Act,” “Statute for Industrial Innovation,” “Greenhouse Gas Reduction and Management Act,” and “Indigenous Peoples Employment Rights Protection Act.” All these acts prohibit discrimination, encourage green purchasing, and promote environmental protection.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP6, Actions taken (page 45).

C. Actions planned

• Continue committing to implement important United Nations human rights covenants, incorporating them into domestic law, and preparing national reports for review (page 9)

‘[…] Besides continuing to assess the feasibility of incorporating the core UN humans rights conventions into domestic law, our government will also continue to study ways to promote the implementation of labor and environmental conventions as they pertain to human rights.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP10, Actions planned (pages 52-53).

• Administrative measures for outbound investment (page 10)

‘The Taiwan government will continue, on the basis of UNGPs, to initiate discussions regarding the issue of administrative measures for outbound investment as applied to business and human rights, and will also set up an inter-ministerial coordination mechanism at the central government level to study actions taken by other nations, and to discuss the necessity and feasibility of enacting legislation that has binding force overseas in specified fields such as […] environmental preservation in a company’s overseas investment activities.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions planned (pages 46-47).

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by businesses for human rights (page 11)

‘The Taiwan government also provides resources and support, including the following: […] it has launched a Green Finance Action Plan that identifies green energy technology and other key industries as top-priority recipients of financial institution support so that they can spur the achievement of energy conservation and carbon reduction targets and environmental protection goals.’

• Greater information transparency (page 13)

‘Since 2014, the Taiwan government has used legislation to require listed companies matching a certain description to prepare a CSR report each year, and as of 2020 our government […] has included environmental, climate change, social, and corporate governance matters in its disclosure requirements in order to ensure that the key performance indicators in non-financial disclosures are more closely linked to the way a company is managed.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

 C. Actions planned

• Advocate for disclosure of non-financial information (page 14)

‘In addition to studying the feasibility of expanding the range of businesses subject to a compulsory requirement to prepare CSR reports, the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as the use of Consumer information, the use of energy, waste handling, labor conditions, environmental protection, forced evictions, indigenous land rights, gender equality, and consumer protection measures — all of which are matters of concern to stakeholders). The goal of such a policy would be to ensure that businesses understand that the disclosure of non-financial information can make up for the shortcomings of financial information, thus enabling businesses to effectively identify and manage risks. This would facilitate the formulation of better business policies, and contribute to the achievement of forward-looking objectives, thus enabling the adoption of sustainable business practices.’

This information is also covered under under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions planned (page 43).

V. Access to remedy

B. Actions taken

• Judicial remedy

Collective remedy and citizen lawsuits (page 17)

‘[…] the “Basic Environment Act,” “Environmental Impact Assessment Act,” “Air Pollution Control Act,” “Waste Disposal Act,” “Soil and Groundwater Pollution Remediation Act,” “Water Pollution Control Act,” and “Toxic and Concerned Chemical Substances Control Act” all include provisions that allow for citizen suits. When a public or private entity violates the law and the competent authority is negligent in enforcement, victims or public interest groups may notify the competent authority in writing, and if the competent authority continues to ignore the violation, the victims or public interest groups may file a lawsuit with an administrative court.’

This information is also covered under Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems, Collective remedy and citizen lawsuits (pages 35-36) and Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP26, Actions taken (page 55).

C. Actions planned

• Strengthening of extraterritorial jurisdiction (page 20)

Cross-border litigation occasionally arises due to: (a) human rights violations or environmental destruction caused in Taiwan by foreign multinational corporations engaged in business activities in Taiwan; or (b) human rights violations or environmental destruction caused overseas by Taiwanese corporations (or by multinational corporations controlled by a Taiwanese corporation) engaged in business activities overseas. With respect to such litigation, our government needs to conduct research on how to provide victims with effective remedy channels. The scope of such research should include, without limitation, the following:

1. Study how to enact rules governing Taiwan’s jurisdiction over cross-border litigation, including litigation filed in Taiwan by foreign nationals not domiciled in Taiwan (but note that, in doing so, we must act in line with the principles of substantive fairness, jurisprudence, and procedural economy).
2. Study the legality and feasibility of using measures other than fines to deal with the corporate criminal liability of Taiwanese and multinational corporations.
3. Multinational corporations often use overseas duty-free countries to establish subsidiaries, so we need to study whether the parent companies of multinational corporations are required to bear joint and several liability for indemnification of aggrieved parties when subsidiaries infringe upon the rights of other parties.
4. Cross-border actions for damages are sometimes filed in connection with environmental destruction caused overseas by multinational corporations, so we need to study whether there is a need to amend related laws and regulations (e.g. environmental protection legislation) to provide for an extended period of prescription

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions planned (page 54).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Government procurement (pages 24-25)

‘Article 26-1 of the “Government Procurement Act” stipulates that an entity may prescribe technical specifications in accordance with Article 26 to promote the conservation of natural resources and protection of environment, and adopt related measures to save energy, save resources, and reduce greenhouse gas emissions. Increases in project expenditures or technical service fees, if any, shall be incorporated into the project budget for approval when preparing the technical specifications or measures.’

Article 96 of the “Government Procurement Act” stipulates that an entity may provide in tender documentation that preference shall be given to a product with the government-recognized Green Mark.

Article 22 of The “Resource Recycling Act” stipulates that all Taiwan government agencies, public schools, public enterprises and organizations, and military authorities shall preferentially procure government-recognized environmentally preferable products, and that 25 the central competent authority and all industry-specific authorities shall perform promotion activities for environmentally preferable products.

Article 27, paragraph 1 of the “Statute for Industrial Innovation” stipulates that central government authorities shall encourage government agencies/organizations and enterprises to purchase green products and services.

Article 25 of the “Greenhouse Gas Reduction and Management Act” stipulates that all levels of government, public education institutions, and government-run enterprises shall promote energy saving and use energy-efficient products or services to reduce GHG emissions.’

• Promotion of corporate social responsibility (pages 26-27)

‘The government may incorporate legally binding non-financial reporting requirements to ensure that companies conduct human rights due diligence. Article 10, subsection 4, item E of the “Regulations Governing 27 Information to be Published in Annual Reports of Public Companies” provides that corporate governance reports shall address CSR elements, such as environmental protection, community participation, social contribution, social services & welfare, consumer rights, human rights, and health & safety.’

‘To strengthen corporate governance, the TWSE and the TPEx have issued several codes of best practice, including the following: “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies”: Listed companies are expected to implement CSR measures to manage their economic and environmental risks and impacts.’

• Promotion of international consensus and cooperation (page 28)

‘Taiwan has an export-driven economy. […] In this overall context, international trade should be promoted in a friendly and constructive manner. This includes promoting the incorporation of environmental, social responsibility, and human rights standards into free trade agreements, as well as designing impact assessment and monitoring mechanisms.

In line with this, Taiwan has included CSR, environmental, and worker rights clauses, as well as “general exceptions,” in many of its trade and investment agreements, such as the following:

[…] Inclusion of “investment/environment/labor” clauses: Host states shall not attract investment by relaxing health, safety, or environmental protections, or by lowering labor standards. At present, Taiwan has several free trade agreements (FTAs) with such clauses, including Article 10.15 of the Taiwan-Guatemala FTA, Article 10.11 of the Taiwan-Nicaragua FTA, Article 10.16 of the Taiwan-El Salvador-Honduras FTA, Article 24 of the Taiwan -Japan BIA, and Article 12.16 of the Taiwan-New Zealand FTA.’

• Other legislative action and measures (page 30)

‘The Environmental Protection Administration, acting in accordance with Article 7 of the “Air Pollution Protection Act,” proposed an “Air Pollution Control Plan (2020–2023),” and it was approved by the Executive Yuan on 22 May 2020. The annual air quality target set out in the Plan calls for a nationwide average PM2.5 concentration of 15µg/m3. It also focuses on the need to reduce emissions of ozone and volatile organic compounds, requires that restrictions be applied with greater breadth and rigor, and distinguishes between stationary, mobile, and fugitive sources of pollution. In total, the Plan comprises 27 specific measures that address the air pollution problem on four different fronts.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• Governments can provide information and support to enterprises. The Taiwan government has implemented several regulations and measures to provide enterprises with guidance and support, including the following: (pages 31-32)

‘Chapter 4 of the “Greenhouse Gas Reduction and Management Act” sets out educational, outreach, and reward mechanisms related to greenhouse gas reduction. Government agencies at all levels are required to promote industry awareness of the need for mitigation of the impact of global climate change and the reduction of greenhouse gas emissions. In addition to promoting carbon footprint monitoring systems, the Executive Yuan’s Environmental Protection Agency issued the “Regulations Governing Incentives for Low-Carbon Products” in July 2017 on the authority of Article 27, paragraph 2 of the “Greenhouse Gas Reduction and Management Act.” These new Regulations provide companies with more incentives to affix their products with carbon footprint marks and carbon footprint reduction marks.

Article 26 of the “Statute for Industrial Innovation” provides as follows:

To encourage the sustainable development of industries, the central authorities in charge of relevant enterprises may provide enterprises with grants or guidance to promote the following matters: (a) Assisting enterprises in adapting to international regulations for environmental protection and health and safety. (b) Promoting the development and application of technology relating to greenhouse gas reduction and pollution prevention. (c) Encouraging enterprises to improve the efficiency of their energy and resource consumption and to adopt relevant technologies that may recycle/renew energy/resources and save energy and water. (d) Production of non-toxic, less-polluting products and other products that reduce the burden on the environment.

[…] Article 28 of the “Statute for Industrial Innovation” provides that “to encourage enterprises to fulfill their social responsibility, the central authorities in charge of relevant enterprises shall assist enterprises to actively disclose the relevant environmental information regarding their production processes, products, services, and other aspects of sustainable development, and the enterprises with outstanding performance may be eligible to receive commendations or awards.”

On November 6, 2017, the Executive Yuan approved the “Green Finance Action Plan” proposed by the Financial Supervisory Commission. This Plan encourages banks to adopt the Equator Principles (EPs) for international benchmarking. The EPs provide a risk management framework for assessing and managing the environmental and social risks of projects.’

In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following:

‘[…] The Taiwan Institute for Sustainable Energy has launched the Taiwan Sustainability Value Index (TWSVI). The TWSVI uses economic, environmental, social, disclosure, and sustainability evaluations to select company stocks that have both financial and long-term sustainability value.

The Taiwan Institute for Sustainable Energy cooperates with the government to develop renewable energy, strengthen the promotion of green finance and sustainable finance, and help enterprises to comply with the “Principles for Responsible Banking” and the recommendations of the “Task Force on Climate-related Financial Disclosures.”

[…] to promote the development of a sustainable investment environment, TWSE subsidiary Taiwan Index Plus Corporation and FTSE Russell jointly released the “FTSE4Good TIP Taiwan ESG Index,” the first ESG index that fully integrates environmental, social, corporate governance, and financial indicators in Taiwan.

[…] Industry associations and companies also voluntarily propose or follow many relevant international standards, including the following: In order to ensure CSR implementation in the financial industry, the Bankers Association of the ROC in 2014 adopted credit guidelines with reference to the spirit of the “Equator Principles,” addressing such matters as environmental protection, ethical business practices, and social responsibility.’

Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy

The State duty to protect

UNGP2

Actions planned (page 40)

‘The Taiwan government has pledged to […] [c]ontinue, on the basis of UNGPs, to initiate discussions […] [focusing] on monitoring and study of domestic human rights incidents that have occurred in recent years, and the results of this effort will serve as reference for future legislative amendments.’

Read more about Environment & climate change

III. The State duty to protect human rights

C. Actions planned

• Continue committing to implement important United Nations human rights covenants, incorporating them into domestic law, and preparing national reports for review (pages 8-9)

‘A plan of the Ministry of the Interior (MOI) to implement the “International Convention on the Elimination of All Forms of Racial Discrimination” was approved by the Executive Yuan on 8 May 2020. […] The Ministry’s work will include the preparation of a national report and the conduct of an international review.’

• Continue pushing for passage of laws to protect working conditions and labor rights (pages 9-10)

‘The Taiwan government each year holds workshops on workplace equality and sexual harassment to prevent employers from discriminating against employees or job seekers on account of age.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP 2, Actions planned (pages 39-40).

V. Access to remedy

B. Actions taken

• Judicial remedy

Civil remedy and litigation aid (page 17)

‘The “Code of Civil Procedure” and the “Labor Incident Act” both provide for a “litigation aid” system. Under this system, except in cases where there is manifestly no prospect for a party to prevail in the action, or where a party lacks the financial means to pay the litigation expenses, the court may grant the litigant temporary relief from any requirement to pay court costs. Taiwan’s “Legal Aid Act” provides that when a party lacks the financial means to pay litigation expenses and attorney fees, the court shall provide aid through an institutional channel to safeguard the basic human right of the people to engage in litigation and benefit from the right of equality.’

This information is also covered under Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems, Civil remedy and litigation aid (page 35).

• Non-judicial remedy

Grievance system for employment discrimination (page 19)

‘The labor competent authorities in local governments throughout Taiwan have already established employment discrimination grievance channels to deal with instances of employment discrimination involving gender, age, and disability. Accordingly, employees or job seekers who discover law-breaking behavior on the part of an employer can file a grievance via any of the [channels mentioned in this NAP].’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy UNGP30, Actions taken (page 59).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Taiwan’s commitment to human rights and international participation (page 23)

‘The “Enforcement Act of Convention on the Elimination of All Forms of Discrimination against Women” came into force on 1 January 2012. This convention promotes fairer gender standards in Taiwan with the aim of achieving gender equality.’

• Government procurement (page 24)

‘Article 101, paragraph 1, subparagraph 14 of the “Government Procurement Act” provides that where the supplier discriminates on the
basis of gender, aboriginal status, physical or mental disability, or status as the member of a disadvantaged group, where the details of the
discrimination are particularly serious, it will be published in the Government Procurement Gazette and the supplier shall not be allowed to
bid on a government contract (or be a sub-contractor) for one year.’

• Other legislative action and measures (page 29)

‘To promote gender equality in the workplace, Chapter II of the “Act of Gender Equality in Employment” expressly prohibits employers from discriminating on the basis of gender or sexual orientation, and Chapter III of the same Act states that employers are obliged to prevent sexual harassment, and requires employers of a certain size to establish measures for preventing and correcting sexual harassment, complaint procedures, and disciplinary measures, and to openly display these measures in the workplace.’

Read more about Equality & non-discrimination

Taiwan’s NAP does not explicitly address this issue.

Read more about Export credit

Taiwan’s NAP does not explicitly address this issue.

Read more about Extractives sector

III. The State duty to protect human rights

C. Actions planned

• Administrative measures for outbound investment (page 10)

‘The Taiwan government will continue, on the basis of UNGPs, to initiate discussions regarding the issue of administrative measures for outbound investment as applied to business and human rights, and will also set up an inter-ministerial coordination mechanism at the central government level to study actions taken by other nations, and to discuss the necessity and feasibility of enacting legislation that has binding force overseas in specified fields such as anti-discrimination, labor rights, and environmental preservation in a company’s overseas investment activities.

The aforementioned discussions must also address measures to strengthen regulations, supervisory mechanisms, and other such concrete actions involving Taiwan’s screening of FDI into foreign nations. This must be done in order to ensure that companies’ overseas investment activities do not violate international human rights regulations and standards.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The State duty to protect, UNGP7, Actions planned (pages 46-47).

V. Access to remedy

B. Actions taken

• Judicial remedy

Extraterritorial jurisdiction (page 18)

‘With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company engages overseas in human trafficking, drug dealing, or piracy (as referred to in Article 5 of Taiwan’s “Criminal Code”), or offers a bribe to a public servant from Taiwan or a foreign nation in connection with cross-border trade, investment, or other business activities (as referred to in Article 11 of the “Anti-Corruption Act”), the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed.

In addition, the “Regulations Governing the Handling of Companies’ Overseas Investments” provide that when the Taiwan government reviews an investment application, if it discovers that a company has violated the provisions of an international treaty in the course of its overseas investment activities, the application will be rejected. Also, the Taiwan government imposes corporate social responsibility requirements when it grants approval for a company to invest overseas, and at the same time will require the company to abide by the legal requirements of the host jurisdiction.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions taken (pages 53-54).

C. Actions planned

• Strengthening of extraterritorial jurisdiction (pages 20-21)

Cross-border litigation occasionally arises due to: (a) human rights violations or environmental destruction caused in Taiwan by foreign multinational corporations engaged in business activities in Taiwan; or (b) human rights violations or environmental destruction caused overseas by Taiwanese corporations (or by multinational corporations controlled by a Taiwanese corporation) engaged in business activities overseas. With respect to such litigation, our government needs to conduct research on how to provide victims with effective remedy channels. The scope of such research should include, without limitation, the following:

1. Study how to enact rules governing Taiwan’s jurisdiction over cross-border litigation, including litigation filed in Taiwan by foreign nationals not domiciled in Taiwan (but note that, in doing so, we must act in line with the principles of substantive fairness, jurisprudence, and procedural economy).
2. Study the legality and feasibility of using measures other than fines to deal with the corporate criminal liability of Taiwanese and multinational corporations.
3. Multinational corporations often use overseas duty-free countries to establish subsidiaries, so we need to study whether the parent companies of multinational corporations are required to bear joint and several liability for indemnification of aggrieved parties when subsidiaries infringe upon the rights of other parties.
4. Cross-border actions for damages are sometimes filed in connection with environmental destruction caused overseas by multinational corporations, so we need to study whether there is a need to amend related laws and regulations (e.g. environmental protection legislation) to provide for an extended period of prescription.

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions planned (page 54).

Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems

• Extraterritorial jurisdiction (page 35)

Article 5 of Taiwan’s “Criminal Code” provides that if a company engages overseas in human trafficking, drug dealing, or piracy, the offense will be subject to the relevant provisions of Taiwan’s Criminal Code, and Taiwan’s judicial system has the power to prosecute and punish the offender.

Article 11 of the “Anti-Corruption Act” provides that a public servant who offers (in connection with cross-border trade, investment, or other business activities) to bribe a public servant from Taiwan, the Chinese mainland, Hong Kong, or Macao shall bear criminal liability, and the offender will be dealt with according to the provisions of the “Anti-Corruption Act” regardless whether the offense is punishable or not under the law of the land where the crime is committed.

Article 6 of the “Regulations Governing the Handling of Companies’ Overseas Investments” provides that the competent authority may withdraw approval of a company’s overseas investment if the investment: (a) has affected national security; (b) has had an adverse impact on the nation’s economic development; (c) has violated obligations imposed by an international treaty or agreement; (d) has infringed intellectual property rights; (e) has, by violating the Labor Standards Act, caused a major labor-management dispute that remains unresolved; or (f) has tarnished the nation’s image.’

Read more about Extraterritorial jurisdiction

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Promotion of corporate social responsibility (page 27)

‘The Taiwan Stock Exchange (TWSE) has issued the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies,” and the Taipei Exchange (TPEx) has issued the “Taipei Exchange Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TPEx Listed Companies.” If a listed company is in any of the following circumstances, it shall prepare and file a corporate social responsibility report in Chinese according to these Rules: (a) the company is in the food industry, chemical industry, or financial industry; (b) no less than 50 percent of the company’s total operating revenue is derived from food and beverages; or (c) the company’s capital stock is not less than NT$5 billion. A listed company to which the above descriptions apply shall prepare a corporate social responsibility report for the preceding year, making reference to the Global Reporting Initiative (GRI) Standards and the Sector Disclosure documents issued by the GRI.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• Governments can provide information and support to enterprises. The Taiwan government has implemented several regulations and measures to provide enterprises with guidance and support, including the following: (page 32)

‘…On November 6, 2017, the Executive Yuan approved the “Green Finance Action Plan” proposed by the Financial Supervisory Commission. This Plan encourages banks to adopt the Equator Principles (EPs) for international benchmarking. The EPs provide a risk management framework for assessing and managing the environmental and social risks of projects.’

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following: (pages 32-33)

‘…The Taiwan Institute for Sustainable Energy has launched the Taiwan Sustainability Value Index (TWSVI). The TWSVI uses economic, environmental, social, disclosure, and sustainability evaluations to select company stocks that have both financial and long-term sustainability value.

The Taiwan Institute for Sustainable Energy cooperates with the government to … help enterprises to comply with the “Principles for Responsible Banking” and the recommendations of the “Task Force on Climate-related Financial Disclosures.”

[…]

In addition, in order to promote the development of a sustainable investment environment, TWSE subsidiary Taiwan Index Plus Corporation and FTSE Russell jointly released the “FTSE4Good TIP Taiwan ESG Index,” the first ESG index that fully integrates environmental, social, corporate governance, and financial indicators in Taiwan.

The Taipei Exchange and the Taiwan Index Plus Corporation have joined forces with the Taiwan Business Council for Sustainable Development to collaborate in developing the TIP Taiwan TPEx CSR Index, which selects component stocks on the basis of whether the issuing companies satisfy certain CSR performance criteria. The Index thus encourages companies to take their CSR obligations seriously and to fulfill them. We also hope to see companies issue ETFs, ETNs, index warrants, index funds, and other index products that would provide investors new channels via which to take part in socially responsible investing.

Industry associations and companies also voluntarily propose or follow many relevant international standards, including the following:

In order to ensure CSR implementation in the financial industry, the Bankers Association of the ROC in 2014 adopted credit guidelines with reference to the spirit of the “Equator Principles,” addressing such matters as environmental protection, ethical business practices, and social responsibility.’

Read more about Finance & banking sector

It was announced in July 2021 at the EU-Taiwan fourth human rights consultation that a National Action Plan on Fishing and Human Rights was also under preparation.

Source: https://en.mofa.gov.tw/News_Content.aspx?n=1328&s=96160

Read more about Fisheries and aquaculture sectors

V. Access to remedy

B. Actions taken

• Judicial remedy

Extraterritorial jurisdiction (page 18)

With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company engages overseas in human trafficking, drug dealing, or piracy (as referred to in Article 5 of Taiwan’s “Criminal Code”), […] the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions taken (page 53).

Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems

• Extraterritorial jurisdiction (page 36)

‘Article 5 of Taiwan’s “Criminal Code” provides that if a company engages overseas in human trafficking, drug dealing, or piracy, the offense will be subject to the relevant provisions of Taiwan’s Criminal Code, and Taiwan’s judicial system has the power to prosecute and punish the offender.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions taken (page 53).

Read more about Forced labour & modern slavery

IV. The corporate responsibility to respect human rights

B. Actions taken

• Respect for employee interests and the views of stakeholders (page 12)

‘The workplace is especially important to the human rights of a company’s employees. Examples include an employee’s right to take part in collective bargaining, to form or join in a union, or the protection of labor rights. Accordingly, the Taiwan government actively provides guidance to laborers, focusing on such matters as formation of unions, creation of an environment that is conducive to a smoothly operating union, support for women’s employment, and assistance with the elimination of employment barriers.

At the same time, the Taiwan government encourages businesses to engage in dialogue with stakeholders, unions, and the general public regarding issues involving corporate social responsibility, in order to discover problems and take constructive steps to find mutually acceptable solutions. Investors and consumers are important stakeholders, and as such are be able to question how a business is run and express support and encouragement. News organizations, as members of the Fourth Estate, exercise independent oversight and can spur the public to pay closer attention to corporate social responsibility issues.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP4, Actions taken (page 44).

Read more about Freedom of association

The Taiwanese NAP does not make a direct reference to the Garment sector.

Read more about Garment, Textile and Footwear Sector

III. The State duty to protect human rights

C. Actions planned

• Continue pushing for passage of laws to protect working conditions and labor rights (pages 9-10)

‘[…] we intend to pursue a number of strategies aimed at boosting women’s economic empowerment. These include promotion of women’s entrepreneurship (and employment), creation of gender-equal workplaces, promotion of flexible working hours and locations, encouragement of re-entry into the job market, and prevention of early withdrawal from the workforce.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP2, Actions planned (page 40).

IV. The corporate responsibility to respect human rights

B. Actions taken

• Greater information transparency (page 13)

‘[…] in response to the Sustainable Development Goals (SDGs), our government has set up a number of corporate excellence awards to recognize strong performance in such areas as transparency and business ethics, gender equality, and talent development. The purpose is to get companies to strengthen disclosure of non-financial information and implement human rights policies.’

C. Actions planned

• Advocate for disclosure of non-financial information (pages 14-15)

In addition to studying the feasibility of expanding the range of businesses subject to a compulsory requirement to prepare CSR reports, the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as […] gender equality […] — all of which are matters of concern to stakeholders). The goal of such a policy would be to ensure that businesses understand that the disclosure of non-financial information can make up for the shortcomings of financial information, thus enabling businesses to effectively identify and manage risks. This would facilitate the formulation of better business policies, and contribute to the achievement of forward-looking objectives, thus enabling the adoption of sustainable business practices.

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, UNGP3, Actions planned (page 43).

V. Access to remedy

B. Actions taken

• Non-judicial remedy (page 18)

‘The Taiwan government encourages members of the public to make use of alternative dispute resolution (ADR) schemes (e.g. grievance, conciliation, mediation, and arbitration procedures that are provided to the public by courts, government agencies, and private groups) to achieve the earliest possible resolution of disputes involving many different matters, including […] gender equality […].’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP27, Actions taken (page 57).

 Grievance system for employment discrimination (page 19)

‘The labor competent authorities in local governments throughout Taiwan have already established employment discrimination grievance channels to deal with instances of employment discrimination involving gender […]. Accordingly, employees or job seekers who discover law-breaking behavior on the part of an employer can file a grievance via any of the [channels mentioned in this NAP].’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy UNGP30, Actions taken (page 59).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Taiwan’s commitment to human rights and international participation (page 23)

‘The “Enforcement Act of Convention on the Elimination of All Forms of Discrimination against Women” came into force on 1 January 2012. This convention promotes fairer gender standards in Taiwan with the aim of achieving gender equality.’

• Government procurement (page 24)

‘Article 101, paragraph 1, subparagraph 14 of the “Government Procurement Act” provides that where the supplier discriminates on the basis of gender […], where the details of the discrimination are particularly serious, it will be published in the Government Procurement Gazette and the supplier shall not be allowed to bid on a government contract (or be a sub-contractor) for one year.’

• Other legislative action and measures (page 29)

‘To promote gender equality in the workplace, Chapter II of the “Act of Gender Equality in Employment” expressly prohibits employers from discriminating on the basis of gender or sexual orientation, and Chapter III of the same Act states that employers are obliged to prevent sexual harassment, and requires employers of a certain size to establish measures for preventing and correcting sexual harassment, complaint procedures, and disciplinary measures, and to openly display these measures in the workplace.’

Read more about Gender & women’s rights

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by businesses for human rights (page 11)

‘[…] the idea that businesses should fulfill their social responsibilities has been incorporated by the government into the “Company Act.” As a result, all businesses in Taiwan now have a clear legal basis to guide the fulfillment of their social responsibilities. In addition, companies must not allow their business activities to cause or contribute to human rights abuses, and they must take steps to prevent human rights abuses, in order to reduce the negative effect of business activities on human rights.’

‘The Taiwan government also provides resources and support, including the following: it uses the “Statute for Industrial Innovation” and other legislation to encourage and reward sustainable development; it expressly provides in the “Company Act” that companies must encourage enterprises to share profits with employees; it has added a new provision to the “Act for Development of Small and Medium Enterprises” to provide that, when the Composite Leading Indicators are above certain levels, if a small or medium enterprise raises the average salary paid to junior employees, it can receive tax breaks; and it has launched a Green Finance Action Plan that identifies green energy technology and other key industries as top-priority recipients of financial institution support so that they can spur the achievement of energy conservation and carbon reduction targets and environmental protection goals. For many years, the government has carried out assistance plans that have provided business diagnosis and consultation services, helped businesses to improve, and provided suggestions for future development.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

• Greater information transparency (page 13)

‘the Taiwan government has also provided businesses with the tools and guidance needed to implement their CSR policies, and has continually conducted outreach activities to encourage businesses to: voluntarily prepare annual CSR reports; disclose their human rights policies, human rights assessment methods, and supplier risks; and establish internal grievance

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

C. Actions planned

• Continue promoting dialogue and communication between businesses and stakeholders (page 14)

‘The Taiwan government will continue to promote dialogue and communication between businesses, government agencies, and civic groups to set up an effective platform for conducting sustained and regular dialogue and communication among themselves. […] To raise awareness of human rights issues, the government will conduct outreach activities. For example, it will prepare multilingual publicity materials to familiarize businesses, interest groups, and NGOs in Taiwan with the UNGPs and the OECD Guidelines for Multinational Enterprises.’

Read more about Guidance to business

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Promotion of international consensus and cooperation (page 28-29)

‘[…] Taiwan believes that trade contributes to sustainable development. […] In line with this, Taiwan has included CSR, environmental, and worker rights clauses, as well as “general exceptions,” in many of its trade and investment agreements, such as the following:

[…] Inclusion of “investment/environment/labor” clauses: Host states shall not attract investment by relaxing health, safety, or environmental protections, or by lowering labor standards. At present, Taiwan has several free trade agreements (FTAs) with such clauses, including Article 10.15 of the Taiwan-Guatemala FTA, Article 10.11 of the Taiwan-Nicaragua FTA, Article 10.16 of the Taiwan-El Salvador-Honduras FTA, Article 24 of the Taiwan -Japan BIA, and Article 12.16 of the Taiwan-New Zealand FTA.

“General exception” clauses: These clauses focus on the following twin 29 themes: 1) investment agreement specifications shall not be interpreted as prohibiting host states from adopting necessary measures based on public interests, such as protecting human health, and 2) such measures should not cause arbitrary or unreasonable discrimination against investors. Such “general exception” clauses are included in Article 16 of the Taiwan-St. Vincent BIA, Article 16 of the Taiwan-Philippines BIA, and Article 31 of the Taiwan-India BIA.’

• Other legislative action and measures (page 29)

‘Article 25 of the “Tobacco and Alcohol Administration Act” stipulates that the nicotine and tar levels of tobacco products must not exceed the maximum limit set by the “Tobacco Hazards Prevention Act” in order to protect the right to health. Article 27 provides that the operations of tobacco and alcohol manufacturers must meet good hygiene standards and relevant factory standards to prevent infringement of the right to health.’

Read more about Health and social care

V. Access to remedy

C. Actions planned

• Push for the passage of whistleblower protection mechanisms (page 21)

‘Besides continuing to improve remedy systems and encouraging businesses to establish internal grievance mechanisms, the Taiwan government, in order to get people to make increased use of remedies and grievance channels, will also: (a) push for the passage of whistleblower protection legislation; (b) provide encouragement and protections to those who have the courage to reveal human rights abuses; and (c) strengthen protections for whistleblowers’ privacy, personal safety, and right to work.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP31, Actions planned (page 61).

Read more about Human rights defenders & whistle-blowers

Taiwan’s NAP does not explicitly address this issue.

Read more about Human rights impact assessments

III. The State duty to protect human rights

B. Actions taken

• Promoting human rights through government procurement operations (page 8)

‘Taiwan has implemented regulations that include such measures, including […]”Indigenous Peoples Employment Rights Protection Act.” All these acts prohibit discrimination, encourage green purchasing, and promote environmental protection.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP6, Actions taken (page 45).

 IV. The corporate responsibility to respect human rights

C. Actions planned

• Advocate for disclosure of non-financial information (pages 14-15)

‘In addition to studying the feasibility of expanding the range of businesses subject to a compulsory requirement to prepare CSR reports, the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as […] indigenous land rights […] – all of which are matters of concern to stakeholders).’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions planned (page 43).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Government procurement (page 24-25)

Article 12 of the “Indigenous Peoples Employment Rights Protection Act” stipulates as follow:

“I. Companies winning bids according to the Government Procurement Act with more than one hundred staff shall hire indigenous people during the term of contract performance, with the total number of indigenous people accounting for no less than one percent (1%) of the total number of working staff thereof.

1. The indigenous people hired according to the provision in the previous section shall receive pre-job training before commencement of their work; training fees shall be subsidized by the government; the conditions, duration and amount of subsidies shall be determined by the competent authority for labor issues in the central government.

III. In the event that the winning bidder fails to hire enough indigenous people based on the requirement set out in paragraph I above, it shall make a cash payment to the employment fund of the Aboriginal Comprehensive Development Fund.”’

• Other legislative action and measures (page 29)

[…] ‘Article 8 of the “Public Welfare Lottery Issue Act” provides as follows: “Disabled persons who are capable of working, indigenous persons, and single-parent families with low income shall be given first priority for lottery retailer licenses. Retailers which have more than five employees shall hire at least one disabled person who is capable of working, one indigenous person, or one head of a single-parent family with low income.”’

Read more about Indigenous Peoples

III. The State duty to protect human rights

C. Actions planned

• Actively incorporate human rights clauses into economic and trade agreements (page 10)

‘[…] during the process of discussing and signing bilateral or multilateral economic and trade agreements, Taiwan’s government agencies in charge of economic and trade negotiations will also continue seeking to include human rights clauses to be observed by all signatories.’

Read more about Investment treaties & investor-state dispute settlements

V. Access to remedy

B. Actions taken

• Judicial remedy

Civil remedy and litigation aid (page 17)

The “Code of Civil Procedure” and the “Labor Incident Act” both provide for a “litigation aid” system. Under this system, except in cases where there is manifestly no prospect for a party to prevail in the action, or where a party lacks the financial means to pay the litigation expenses, the court may grant the litigant temporary relief from any requirement to pay court costs. Taiwan’s “Legal Aid Act” provides that when a party lacks the financial means to pay litigation expenses and attorney fees, the court shall provide aid through an institutional channel to safeguard the basic human right of the people to engage in litigation and benefit from the right of equality.

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP26, Actions taken (page 55).

 Collective remedy and citizen lawsuits (page 17)

‘Businesses generally have much greater financial resources than individuals do, which means that when business behavior infringes upon the rights of an individual consumer, it is often difficult for the latter to receive real relief. Accordingly, the Taiwan government has included provisions in the “Code of Civil Procedure” and the “Consumer Protection Act” that allow for the victims of public safety hazards, consumer disputes, and product defects to initiate class action suits. For persons whose rights have been infringed, this approach makes it more affordable for them to seek relief via the judicial system. In addition, the “Basic Environment Act,” “Environmental Impact Assessment Act,” “Air Pollution Control Act,” “Waste Disposal Act,” “Soil and Groundwater Pollution Remediation Act,” “Water Pollution Control Act,” and “Toxic and Concerned Chemical Substances Control Act” all include provisions that allow for citizen suits. When a public or private entity violates the law and the competent authority is negligent in enforcement, victims or public interest groups may notify the competent authority in writing, and if the competent authority continues to ignore the violation, the victims or public interest groups may file a lawsuit with an administrative court.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP26, Actions taken (page 55).

Extraterritorial jurisdiction (page 18)

‘With respect to any human rights abuses that occur overseas, Taiwan already has laws and regulations which provide that such abuses are subject to the jurisdiction of Taiwan’s judicial authorities no matter where the abuses have taken place. For example, if a responsible person or an employee of a company engages overseas in human trafficking, drug dealing, or piracy (as referred to in Article 5 of Taiwan’s “Criminal Code”), or offers a bribe to a public servant from Taiwan or a foreign nation in connection with cross-border trade, investment, or other business activities (as referred to in Article 11 of the “Anti-Corruption Act”), the offense will be subject to the jurisdiction of Taiwan’s judicial authorities regardless whether the offense is punishable or not under the law of the land where the crime is committed. In addition, the “Regulations Governing the Handling of Companies’ Overseas Investments” provide that when the Taiwan government reviews an investment application, if it discovers that a company has violated the provisions of an international treaty in the course of its overseas investment activities, the application will be rejected. Also, the Taiwan government imposes corporate social responsibility requirements when it grants approval for a company to invest overseas, and at the same time will require the company to abide by the legal requirements of the host jurisdiction.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions taken (page 53).

C. Actions planned

• Continue promoting judicial reform, establish better remedy systems (pages 19-20)

‘As part of an ongoing judicial reform effort that first got underway in 1999, the Taiwan government in 2016 convened a “Presidential Office National Congress on Judicial Reform.” After more than 40 subcommittee discussions, the president convened a summary meeting where she instructed government agencies to implement a total of 303 resolutions. Judicial reform measures pertaining to business and human rights include the following:

On 5 December 2018 the president promulgated the “Labor Incident Act,” which entered into force on 1 January 2020. By setting up special labor courts to hear labor-related litigation, and by establishing the principle of providing labor with convenient access to the courts, this Act appropriately adjusts the principle of party presentation, effectively promotes timely adjudication procedures, and institutes a new regime for prompt securing of rights in order to achieve substantive fairness and provide effective remedy.

On 15 January 2020, the president promulgated the “Commercial Case Adjudication Act” and the “Intellectual Property and Commercial Court Organization Act,” which will enter into force from 1 July 2021. Under the new Acts, special intellectual property and commercial courts at the level of a high court will hear commercial litigation as the court of first instance, and a judgment rendered by such a court can only be appealed once, to the Supreme Court. The idea is to ensure that disputes of this nature can be resolved quickly, appropriately, and professionally. This would improve Taiwan’s business environment and boost economic development.

In the future, government agencies will continue engaging in dialogue with society and soliciting a broad range of opinions to use as reference in developing a reform program that is closely in line with conditions in Taiwan. This program will be actively promoted to facilitate further reform of business-related human rights remedy systems.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP26, Actions planned (pages 55-57).

• Strengthening of extraterritorial jurisdiction (pages 20-21)

‘Cross-border litigation occasionally arises due to: (a) human rights violations or environmental destruction caused in Taiwan by foreign multinational corporations engaged in business activities in Taiwan; or (b) human rights violations or environmental destruction caused overseas by Taiwanese corporations (or by multinational corporations controlled by a Taiwanese corporation) engaged in business activities overseas. With respect to such litigation, our government needs to conduct research on how to provide victims with effective remedy channels. The scope of such research should include, without limitation, the following:

1. Study how to enact rules governing Taiwan’s jurisdiction over cross-border litigation, including litigation filed in Taiwan by foreign nationals not domiciled in Taiwan (but note that, in doing so, we must act in line with the principles of substantive fairness, jurisprudence, and procedural economy).
2. Study the legality and feasibility of using measures other than fines to deal with the corporate criminal liability of Taiwanese and multinational corporations.
3. Multinational corporations often use overseas duty-free countries to establish subsidiaries, so we need to study whether the parent companies of multinational corporations are required to bear joint and several liability for indemnification of aggrieved parties when subsidiaries infringe upon the rights of other parties.
4. Cross-border actions for damages are sometimes filed in connection with environmental destruction caused overseas by multinational corporations, so we need to study whether there is a need to amend related laws and regulations (e.g. environmental protection legislation) to provide for an extended period of prescription.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP25, Actions planned (page 54).

Read more about Judicial remedy

IV. The corporate responsibility to respect human rights

C. Actions planned

• Advocate for disclosure of non-financial information (pages 14-15)

‘In addition to studying the feasibility of expanding the range of businesses subject to a compulsory requirement to prepare CSR reports, the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as the […] forced evictions, indigenous land rights, […] — all of which are matters of concern to stakeholders). The goal of such a policy would be to ensure that businesses understand that the disclosure of non-financial information can make up for the shortcomings of financial information, thus enabling businesses to effectively identify and manage risks. This would facilitate the formulation of better business policies, and contribute to the achievement of forward-looking objectives, thus enabling the adoption of sustainable business practices.’

This issue is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The State duty to protect, UNGP3, Actions planned (pages 42-43).

Read more about Land

IV. The corporate responsibility to respect human rights

B. Actions taken

• Respect for employee interests and the views of stakeholders (page 12)

‘Thanks in part to the joint advocacy of the Taiwan government and various other interested parties, more and more businesses — in order to fulfill their social responsibilities and honor their human rights commitments — have taken it upon themselves to establish human rights due diligence procedures, identify and assess related human rights issues, and set up an internal complaint mechanism that functions smoothly and ensures confidentiality.’

Read more about Mandatory human rights due diligence

III. The state duty to protect human rights

C. Actions planned

• Continue committing to implement important United Nations human rights covenants, incorporating them into domestic law, and preparing national reports for review (pages 8-9)

‘In addition to incorporating five core UN human rights conventions in domestic law, […] the Taiwan government has also adopted a national report system based on the UN model, and has pledged to do likewise with another three core human rights conventions, namely, the “International Convention on the Protection of Rights of All Migrant Workers and Members of Their Families,” […]’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP10, Actions planned (pages 52-53).

• Continue pushing for passage of laws to protect working conditions and labor rights (page 10)

‘[…] in order to improve the working conditions of foreign fishing crews, the Taiwan government will provide more living and leisure facilities.’

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Government procurement (page 25)

‘Article 98 of the “Government Procurement Act” stipulates that for a winning tenderer which employs more than 100 persons locally, aborigines or persons with physical or mental disabilities shall account for a minimum of two percent of the total number of employees during the term of contract performance; otherwise, the foregoing tenderer shall pay a fee in lieu of performance and shall not hire foreign workers to make up the shortage in question.’

Read more about Migrant workers

III. The state duty to respect human rights

B. Actions taken

• Promotion of consistency in human rights policies (page 5)

‘Taiwan’s Legislative Yuan passed the “Organic Act of the Control Yuan National Human Rights Commission” in 2019. Then the National Human Rights Commission was formally established on 1 August 2020 to serve as the government’s single human rights authority. The Commission monitors whether the legislative, executive, and judicial branches operate in compliance with international human rights requirements, and whether any government policies or actions infringe upon human rights. It is also authorized to provide suggestions to the executive, legislative, and judicial branches for their reference.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP8, Actions taken (page 47).

Read more about National Human Rights Institutions/ Ombudspersons

IV. The corporate responsibility to respect human rights

B. Actions taken

• Greater information transparency (page 13)

‘Since 2014, the Taiwan government has used legislation to require listed companies matching a certain description to prepare a CSR report each year, and as of 2020 our government — making reference to the non-financial disclosure rules and practices of financial markets around the world — has included environmental, climate change, social, and corporate governance matters in its disclosure requirements in order to ensure that the key performance indicators in non-financial disclosure are more closely linked to the way a company is managed.

At the same time, the Taiwan government has also provided businesses with the tools and guidance needed to implement their CSR policies, and has continually conducted outreach activities to encourage businesses to: voluntarily prepare annual CSR reports; disclose their human rights policies, human rights assessment methods, and supplier risks; and establish internal grievance channels.’

[…]

 ‘In response to the Taiwan government’s call for companies matching a certain description to prepare a CSR report each year, many private groups and organizations have also begun to assess the quality of CSR reports. For example: (a) A well-known magazine that has adopted the IFRS reporting standards carries out annual assessments of the quality of company CSR reports and presents awards to recognize the best ones. (b) There is a private think tank that collaborates with academia to issue the Taiwan Corporate Sustainability Awards each year, encourage the public to accept volunteer training and participate in the evaluation of enterprise sustainability reports and ESG comprehensive performance, spur enterprises to improve information transparency. Also, in response to the Sustainable Development Goals (SDGs), our government has set up a number of corporate excellence awards to recognize strong performance in such areas as transparency and business ethics, gender equality, and talent development. The purpose is to get companies to strengthen disclosure of non-financial information and implement human rights policies.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 42).

C. Actions planned

• Advocate for disclosure of non-financial information (pages 14-15)

‘[…] the Taiwan government will also advocate for disclosure by businesses of non-financial information (related issues will include important environmental, social, and governance (ESG) topics — such as the use of consumer information, the use of energy, waste handling, labor conditions, environmental protection, forced evictions, indigenous land rights, gender equality, and consumer protection measures — all of which are matters of concern to stakeholders). The goal of such a policy would be to ensure that businesses understand that the disclosure of non-financial information can make up for the shortcomings of financial information, thus enabling businesses to effectively identify and manage risks […].’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions planned (page 43).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Promotion of corporate social responsibility (pages 26-27)

‘The government may incorporate legally binding non-financial reporting requirements to ensure that companies conduct human rights due diligence. Article 10, subsection 4, item E of the “Regulations Governing Information to be Published in Annual Reports of Public Companies” provides that corporate governance reports shall address CSR elements, such as environmental protection, community participation, social contribution, social services & welfare, consumer rights, human rights, and health & safety.

The Taiwan Stock Exchange (TWSE) has issued the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies,” and the Taipei Exchange (TPEx) has issued the “Taipei Exchange Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TPEx Listed Companies.” If a listed company is in any of the following circumstances, it shall prepare and file a corporate social responsibility report in Chinese according to these Rules: (a) the company is in the food industry, chemical industry, or financial industry; (b) no less than 50 percent of the company’s total operating revenue is derived from food and beverages; or (c) the company’s capital stock is not less than NT$5 billion. A listed company to which the above descriptions apply shall prepare a corporate social responsibility report for the preceding year, making reference to the Global Reporting Initiative (GRI) Standards and the Sector Disclosure documents issued by the GRI.

The MOEA’s Small and Medium Enterprise Administration has issued the “Principles for Registration of Social Innovation Organizations.” This document calls upon social innovation enterprises to disclose their organizational goals and social missions, and to state how they coincide with the UN’s Sustainable Development Goals and/or Taiwan’s efforts regarding social issues.

To strengthen corporate governance, the TWSE and the TPEx have issued several codes of best practice, including the following:

“Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies”: Listed companies are expected to implement CSR measures to manage their economic and environmental risks and impacts.

“Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies “: Listed corporations are required to establish a corporate culture built upon good management and integrity. Corporations shall also consider the background of their suppliers. Corporations are expected to act with high integrity.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following: (page 34)

‘…Taiwan’s Asustek Computer, Acer Corporation, Hon Hai Technology, HTC, and TSMC are all members of the Responsible Business Alliance and follow the “Responsible Business Alliance Code of Conduct” to strengthen the management of supply chains.

Asustek, Acer, HTC, and TSMC are also members of the Responsible Minerals Initiative, which helps firms manage issues related to conflict minerals. This includes assistance in due diligence efforts.’

This information is also covered under Appendix 4, Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions taken (page 46).

Read more about Non-financial reporting

IV. The corporate responsibility to respect human rights

B. Actions taken

• Greater information transparency (page 13)

‘At the same time, the Taiwan government has also provided businesses with the tools and guidance needed to implement their CSR policies, and has continually conducted outreach activities to encourage businesses to: […] establish internal grievance channels.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 42).

C. Actions planned

• Continue encouraging businesses to adopt and implement human rights policies

The Taiwanese government ‘will encourage companies to establish internal remedy systems so that disputes can be resolved through in-house complaint mechanisms. This would reduce the volume of litigation filed with the courts.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP28, Actions planned (page 58).

V. Access to remedy

B. Actions taken

• Non-judicial remedy (pages 18-19)

‘The Taiwan government encourages members of the public to make use of alternative dispute resolution (ADR) schemes (e.g. grievance, conciliation, mediation, and arbitration procedures that are provided to the public by courts, government agencies, and private groups) to achieve the earliest possible resolution of disputes involving many different matters, including medical treatment, labor-management issues, gender equality, and consumer protection.

Pre-mediation proceedings

In the field of labor-related disputes, for example, in order to provide alternative dispute resolution schemes, the “Act for Settlement of Labor-Management Disputes” establishes mediation, arbitration, and administrative decision mechanisms. Also, the “Code of Civil Procedure” and the “Labor Incident Act” both provide for a compulsory conciliation system so that cases will, in principle, have to first go through conciliation proceedings, and then proceed to judicial proceedings only after conciliation fails to yield a resolution.

Bringing alternative dispute resolution (ADR) resources into play

The Taiwan government has also launched a Search Platform for Alternative Dispute Resolution Mechanisms to provide stronger links between public and private ADR mechanisms. The Search Platform to sets out information on various ADR mechanisms, categorizing its listings on the basis of type of institution, type of dispute, name of organization, location of organization, etc. Anyone can use the ADR Search Platform to quickly find an ADR body to handle a dispute resolution process.

Grievance system for employment discrimination

The labor competent authorities in local governments throughout Taiwan have already established employment discrimination grievance channels to deal with instances of employment discrimination involving gender, age, and disability. Accordingly, employees or job seekers who discover law-breaking behavior on the part of an employer can file a grievance via any of the aforementioned channels.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP27, Actions taken (pages 57-58) and UNGP28, Actions taken (page 58).

Read more about Non-judicial grievance mechanisms

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by business for international human rights standards (page 11)

‘The Taiwan government encourages businesses to engage in responsible business behavior, and has adopted internationally recognized corporate social responsibility standards, such as the UNGPs, the UN Global Compact, ILO Conventions and the OECD Guidelines for Multinational Enterprises.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to respect, UNGP3, Actions taken (page 41).

C. Actions planned

• Continue promoting dialogue and communication between businesses and stakeholders (page 14)

‘The Taiwan government will continue to promote dialogue and communication between businesses, government agencies, and civic groups to set up an effective platform for conducting sustained and regular dialogue and communication among themselves. […]For example, it will prepare multilingual publicity materials to familiarize businesses, interest groups, and NGOs in Taiwan with the UNGPs and the OECD Guidelines for Multinational Enterprises.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following (page 32)

‘The MOEA’s Department of Investment Services (DOIS) organizes CSR seminars each year to increase corporate understanding of the UNGPs and the OECD Guidelines for Multinational Enterprises.’

Read more about OECD National Contact Points

III. The State duty to protect human rights

B. Actions taken

• Voluntary commitment to implementation of international covenants (page 6)

‘[…] although Taiwan is not a member of the United Nations, it has nevertheless signed and ratified important United Nations human rights covenants in recent years, including the […] “Convention on the Rights of People with Disabilities” […] In addition, the Taiwan government has gone through the legislative process to incorporate these covenants and conventions into domestic law, and has periodically prepared national reports and submitted them for review by international experts.’

• Business-related human rights safeguards in Taiwanese legislation (page 7)

‘The Taiwan government has already incorporated […] the “Convention on the Rights of Persons with Disabilities” […] and other such UN covenants and conventions into domestic legislation, so they can be directly applied as Taiwan law.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to respect, UNGP2, Actions taken (page 38).

C. Actions planned

• Continue pushing for passage of laws to protect working conditions and labor rights (pages 9-10)

‘[Taiwan has] a special chapter on employment rights in the “Act for Protecting the Interests of the Physically and Mentally Disabled,” are promoting occupational rehabilitation, and have adopted a system of a fixed number of total employees. These measures are designed to uphold the rights and interests of persons with physical and mental disabilities.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to respect, UNGP2, Actions planned (page 39).

V. Access to remedy

B. Actions taken

• Non-judicial remedy

Grievance system for employment discrimination (page 19)

‘The labor competent authorities in local governments throughout Taiwan have already established employment discrimination grievance channels to deal with instances of employment discrimination involving […] disability. Accordingly, employees or job seekers who discover law-breaking behavior on the part of an employer can file a grievance via any of the aforementioned channels.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, Access to remedy, UNGP30, Actions taken (page 59).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Taiwan’s commitment to human rights and international participation (page 23)

‘Regarding the ratification and the entry into force of important UN conventions, the Taiwan government has taken following actions: […] The “Act to Implement the Convention on the Rights of Persons with Disabilities” came into force on 3 December 2014. This convention protects the rights and interests of persons with physical and mental disabilities, and ensures their opportunity for equal social, political, economic, and cultural participation.’

• Government procurement (page 24)

‘Article 101, paragraph 1, subparagraph 14 of the “Government Procurement Act” provides that where the supplier discriminates on the basis of gender, aboriginal status, physical or mental disability, or status as the member of a disadvantaged group, where the details of the discrimination are particularly serious, it will be published in the Government Procurement Gazette and the supplier shall not be allowed to bid on a government contract (or be a sub-contractor) for one year.’

[…]

‘Article 98 of the “Government Procurement Act” stipulates that for a winning tenderer which employs more than 100 persons locally, aborigines or persons with physical or mental disabilities shall account for a minimum of two percent of the total number of employees during the term of contract performance; otherwise, the foregoing tenderer shall pay a fee in lieu of performance and shall not hire foreign workers to make up the shortage in question.’

• Other legislative action and measures (page 29)

‘Article 8 of the “Public Welfare Lottery Issue Act” provides as follows: “Disabled persons who are capable of working, indigenous persons, and single-parent families with low income shall be given first priority for lottery retailer licenses. Retailers which have more than five employees shall hire at least one disabled person who is capable of working, one indigenous person, or one head of a single-parent family with low income.”’

Read more about Persons with disabilities

III. The state duty to protect human rights

B. Actions taken

• Promotion of consistency in human rights policies (pages 5-6)

‘To signal the importance of human rights policies, the Taiwan government on 24 October 2000 established the Presidential Human Rights Advisory Committee, which on 30 April 2004 was expanded and renamed the Presidential Office Human Rights Consultative Committee. This Committee is chaired by the Vice President, and puts especially high priority on the issues of “incorporating human rights protections into the Constitution” and “amending legislation to address human rights concerns.”

Taiwan’s Legislative Yuan passed the “Organic Act of the Control Yuan National Human Rights Commission” in 2019. Then the National Human Rights Commission was formally established on 1 August 2020 to serve as the government’s single human rights authority. The Commission monitors whether the legislative, executive, and judicial branches operate in compliance with international human rights requirements, and whether any government policies or actions infringe upon human rights. It is also authorized to provide suggestions to the executive, legislative, and judicial branches for their reference. The aforementioned Presidential Office Human Rights Consultative Committee has been dissolved because it completed its assigned mission.

‘To ensure consistency in the human rights policies of different government agencies, the Executive Yuan has established a Human Rights Protection and Promotion Committee to research different countries’ human rights safeguard systems, as well as international rules, and to promote and implement Taiwan’s policies for the protection of fundamental human rights. The Committee membership is composed of officials from government agencies involved in related fields, including the Ministry of Justice, Ministry of Economic Affairs, Ministry of the Interior, Ministry of Foreign Affairs, Ministry of National Defense, Ministry of Economic Affairs, Ministry of Finance, Ministry of Education, Ministry of Labor, Ministry of Health and Welfare, Environmental Protection Administration, and Council of Indigenous Peoples.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP8, Actions taken (pages 47-48).

 C. Actions planned

• Administrative measures for outbound investment (page 10)

‘The Taiwan government will continue, on the basis of UNGPs, to initiate discussions regarding the issue of administrative measures for outbound investment as applied to business and human rights, and will also set up an inter-ministerial coordination mechanism at the central government level to study actions taken by other nations, and to discuss the necessity and feasibility of enacting legislation that has binding force overseas in specified fields such as anti-discrimination, labor rights, and environmental preservation in a company’s overseas investment activities.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions planned (page 46).

Read more about Policy coherence

Taiwan’s NAP does not explicitly cover this issue.

Read more about Privatisation

III. The State duty to protect human rights

B. Actions taken

• Promoting human rights through government procurement operations (page 8)

‘Taiwan has implemented regulations that include such measures, including the “Government Procurement Act,” “Resource Recycling Act,” “Statute for Industrial Innovation,” “Greenhouse Gas Reduction and Management Act,” and “Indigenous Peoples Employment Rights Protection Act.” All these acts prohibit discrimination, encourage green purchasing, and promote environmental protection.

In addition, the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP5, Actions taken (page 44).

• Government procurement (pages 24-26)

Taiwan has implemented regulations with such measures, including the following;

Article 101, paragraph 1, subparagraph 14 of the “Government Procurement Act” provides that where the supplier discriminates on the basis of gender, aboriginal status, physical or mental disability, or status as the member of a disadvantaged group, where the details of the discrimination are particularly serious, it will be published in the Government Procurement Gazette and the supplier shall not be allowed to bid on a government contract (or be a sub-contractor) for one year.

Article 26-1 of the “Government Procurement Act” stipulates that an entity may prescribe technical specifications in accordance with Article 26 to promote the conservation of natural resources and protection of environment, and adopt related measures to save energy, save resources, and reduce greenhouse gas emissions. Increases in project expenditures or technical service fees, if any, shall be incorporated into the project budget for approval when preparing the technical specifications or measures.

Article 96 of the “Government Procurement Act” stipulates that an entity may provide in tender documentation that preference shall be given to a product with the government-recognized Green Mark.

Article 22 of the “Resource Recycling Act” stipulates that all Taiwan government agencies, public schools, public enterprises and organizations, and military authorities shall preferentially procure government-recognized environmentally preferable products, and that the central competent authority and all industry-specific authorities shall perform promotion activities for environmentally preferable products.

Article 27, paragraph 1 of the “Statute for Industrial Innovation” stipulates that central government authorities shall encourage government agencies/organizations and enterprises to purchase green products and services.

Article 25 of the “Greenhouse Gas Reduction and Management Act” stipulates that all levels of government, public education institutions, and government-run enterprises shall promote energy saving and use energy-efficient products or services to reduce GHG emissions.

Article 98 of the “Government Procurement Act” stipulates that for a winning tenderer which employs more than 100 persons locally, aborigines or persons with physical or mental disabilities shall account for a minimum of two percent of the total number of employees during the term of contract performance; otherwise, the foregoing tenderer shall pay a fee in lieu of performance and shall not hire foreign workers to make up the shortage in question.

Article 12 of the “Indigenous Peoples Employment Rights Protection Act” stipulates as follows:

“I. Companies winning bids according to the Government Procurement Act with more than one hundred staff shall hire indigenous people during the term of contract performance, with the total number of indigenous people accounting for no less than one percent (1%) of the total number of working staff thereof.

II. The indigenous people hired according to the provision in the previous section shall receive pre-job training before commencement of their work; training fees shall be subsidized by the government; the conditions, duration and amount of subsidies shall be determined by the competent authority for labor issues in the central government.

III. In the event that the winning bidder fails to hire enough indigenous people based on the requirement set out in paragraph I above, it shall make a cash payment to the employment fund of the Aboriginal Comprehensive Development Fund.”

Article 70 of the “Government Procurement Act” stipulates that an entity conducting a procurement procedure for construction work shall stipulate the responsibility of the supplier for quality control, environmental protection, as well as workplace safety and hygiene, and shall also establish inspection procedures and standards for the major items of the construction work.

Article 70-1 of the “Government Procurement Act” stipulates that in conducting the planning or design of a construction project, an entity shall analyze the potential construction hazards with an eye to the scale and characteristics of the construction project, prepare the drawings and specifications related to safety and health in accordance with the “Occupational Safety and Health Act” and its secondary regulations, and quantify related safety and health expenditures. Such information, and the requirements of the supplier to arrange or take necessary preventive equipment or measures, shall be included in the governmental tender documentation at the bidding stage. Where an occupational accident occurs at the construction site due to lack (or poor quality) of safety and health equipment or facilities as required by regulations or contract, the supplier shall not only be punished pursuant to the “Occupational Safety and Health Act” and its secondary regulations, but shall also be dealt with according to the “Government Procurement Act” and the contractual provisions.

In addition, the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders shall include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP6, Actions taken (page 45).

Read more about Public procurement

Taiwan’s NAP does not explicitly address this issue.

Read more about Security sector

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by businesses for human rights (pages 11-12)

The Taiwan government also provides resources and support, including the following: […] it has added a new provision to the “Act for Development of Small and Medium Enterprises” to provide that, when the Composite Leading Indicators are above certain levels, if a small or medium enterprise raises the average salary paid to junior employees, it can receive tax breaks; […]’

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Promotion of corporate social responsibility (page 27)

‘The MOEA’s Small and Medium Enterprise Administration has issued the “Principles for Registration of Social Innovation Organizations.” This document calls upon social innovation enterprises to disclose their organizational goals and social missions, and to state how they coincide with the UN’s Sustainable Development Goals and/or Taiwan’s efforts regarding social issues.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• Governments can provide information and support to enterprises. The Taiwan government has implemented several regulations and measures to provide enterprises with guidance and support, including the following: (page 32)

‘Article 36-2, paragraph 3 of the “Act for Development of Small and Medium Enterprises” provides as follow: “During the period when the Composite Leading Indicators are above certain levels, if a small and medium enterprise raises the average salary paid to the domestic junior employees, it can deduct up to 130% of the incremental annual gross salary payments, excluding statutory basic wage adjustments, to the junior employees from its current year profit-seeking enterprise.’

Read more about Small & medium-sized enterprises

Taiwan’s NAP does not explicitly address this issue.

Read more about State Owned Enterprises/ Public Private Partnerships

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following: (page 34)

‘Taiwan’s Asustek Computer, Acer Corporation, Hon Hai Technology, HTC, and TSMC are all members of the Responsible Business Alliance and follow the “Responsible Business Alliance Code of Conduct” to strengthen the management of supply chains.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions taken (page 46).

Read more about Supply chains

Taiwan’s NAP does not explicitly address this issue.

Read more about Taxation

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by businesses for human rights (page 11)

‘The Taiwan government also provides resources and support, including the following: it uses the “Statute for Industrial Innovation” and other legislation to encourage and reward sustainable development; […]’

• Greater information transparency (page 13)

‘[…] in response to the Sustainable Development Goals (SDGs), our government has set up a number of corporate excellence awards to recognize strong performance in such areas as transparency and business ethics, gender equality, and talent development. The purpose is to get companies to strengthen disclosure of non-financial information and implement human rights policies.’

Appendix 1: Concrete actions taken by Taiwan to fulfil the state obligation to protect

• Promotion of corporate social responsibility (page 27)

‘…The MOEA’s Small and Medium Enterprise Administration has issued the “Principles for Registration of Social Innovation Organizations.” This document calls upon social innovation enterprises to disclose their organizational goals and social missions, and to state how they coincide with the UN’s Sustainable Development Goals and/or Taiwan’s efforts regarding social issues.’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• Governments can provide information and support to enterprises. The Taiwan government has implemented several regulations and measures to provide enterprises with guidance and support, including the following: (pages 31-32)

‘…Article 26 of the “Statute for Industrial Innovation” provides as follows: To encourage the sustainable development of industries, the central authorities in charge of relevant enterprises may provide enterprises with grants or guidance to promote the following matters: (a) Assisting enterprises in adapting to international regulations for environmental protection and health and safety. (b) Promoting the development and application of technology relating to greenhouse gas reduction and pollution prevention. (c) Encouraging enterprises to improve the efficiency of their energy and resource consumption and to adopt relevant technologies that may recycle/renew energy/resources and save energy and water. (d) Production of non-toxic, less-polluting products and other products that reduce the burden on the environment.

In order to spur companies to follow CSR principles, Article 28 of the “Statute for Industrial Innovation” provides that “to encourage enterprises to fulfil their social responsibility, the central authorities in charge of relevant enterprises shall assist enterprises to actively disclose the relevant environmental information regarding their production processes, products, services, and other aspects of sustainable development, and the enterprises with outstanding performance may be eligible to receive commendations or awards.”’

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following:  (pages 32-33)

‘[…] The Taiwan Institute for Sustainable Energy has established the “Taiwan Academy of Corporate Sustainability (TACS),” which works with universities, enterprises, NGOs, and government agencies to organize international seminars, workshops, forums, and other types of activities to promote the SDGs and sustainable development.’

The Taiwan Institute for Sustainable Energy has launched the Taiwan Sustainability Value Index (TWSVI). The TWSVI uses economic, environmental, social, disclosure, and sustainability evaluations to select company stocks that have both financial and long-term sustainability value.

The Taiwan Institute for Sustainable Energy cooperates with the government to develop renewable energy, strengthen the promotion of green finance and sustainable finance, and help enterprises to comply with the “Principles for Responsible Banking” and the recommendations of the “Task Force on Climate-related Financial Disclosures.”

The Taiwan Institute for Sustainable Energy has established the “Taiwan Academy of Corporate Sustainability (TACS),” which works with universities, enterprises, NGOs, and government agencies to organize international seminars, workshops, forums, and other types of activities to promote the SDGs and sustainable development.

In addition, in order to promote the development of a sustainable investment environment, TWSE subsidiary Taiwan Index Plus Corporation and FTSE Russell jointly released the “FTSE4Good TIP Taiwan ESG Index,” the first ESG index that fully integrates environmental, social, corporate governance, and financial indicators in Taiwan.

The Taipei Exchange and the Taiwan Index Plus Corporation have joined forces with the Taiwan Business Council for Sustainable Development to collaborate in developing the TIP Taiwan TPEx CSR Index, which selects component stocks on the basis of whether the issuing companies satisfy certain CSR performance criteria. The Index thus encourages companies to take their CSR obligations seriously and to fulfill them. We also hope to see companies issue ETFs, ETNs, index warrants, index funds, and other index products that would provide investors new channels via which to take part in socially responsible investing.’

Read more about The 2030 Agenda for Sustainable Development

Taiwan’s NAP does not explicitly address this issue.

Read more about Tourism sector

III. The state duty to protect human rights

B. Actions taken

• Promotion of international exchange and cooperation (page 7)

‘Taiwan has inserted “CSR clauses,” “investment/environmental/labor clauses,” and “general exceptions” into previously signed trade and investment agreements, so our government has taken concrete actions to safeguard human rights.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP9, Actions taken (page 49).

C. Actions planned

• Actively incorporate human rights clauses into economic and trade agreements (page 10)

‘In the future, during the process of discussing and signing bilateral or multilateral economic and trade agreements, Taiwan’s government agencies in charge of economic and trade negotiations will also continue seeking to include human rights clauses to be observed by all signatories.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP9, Actions planned (page 50).

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Promotion of international consensus and cooperation (pages 28-29)

‘In line with this, Taiwan has included CSR, environmental, and worker rights clauses, as well as “general exceptions,” in many of its trade and investment agreements, such as the following:

A CSR clause is included as Article 12 of the bilateral investment agreement (BIA) between the Taipei Economic and Cultural Center in India and the India-Taipei Association.

Inclusion of “investment/environment/labor” clauses: Host states shall not attract investment by relaxing health, safety, or environmental protections, or by lowering labor standards. At present, Taiwan has several free trade agreements (FTAs) with such clauses, including Article 10.15 of the Taiwan-Guatemala FTA, Article 10.11 of the Taiwan-Nicaragua FTA, Article 10.16 of the Taiwan-El Salvador-Honduras FTA, Article 24 of the Taiwan -Japan BIA, and Article 12.16 of the Taiwan-New Zealand FTA.

“General exception” clauses: These clauses focus on the following twin 29 themes: 1) investment agreement specifications shall not be interpreted as prohibiting host states from adopting necessary measures based on public interests, such as protecting human health, and 2) such measures should not cause arbitrary or unreasonable discrimination against investors. Such “general exception” clauses are included in Article 16 of the Taiwan-St. Vincent BIA, Article 16 of the Taiwan-Philippines BIA, and Article 31 of the Taiwan-India BIA.’

Read more about Trade

III. The state duty to protect

B. Actions taken

• Promoting human rights through government procurement operations (page 8)

‘[…] the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP5, Actions taken (page 44).

C. Actions planned

• Continue committing to implement important United Nations human rights covenants, incorporating them into domestic law, and preparing national reports for review (pages 8-9)

‘[…] the Taiwan government has also adopted a national report system based on the UN model, and has pledged to do likewise with another three core human rights conventions, namely, the “International Convention on the Protection of Rights of All Migrant Workers and Members of Their Families,” […]’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP10, Actions planned (pages 52-53).

• Continue pushing for passage of laws to protect working conditions and labor rights (page 9)

‘To safeguard the right of laborers to share in the fruits of their labor, and to expand the social safety net, the Taiwan government has pledged to draft and enact a “minimum wage act” and an “occupational accident insurance and protection act.”

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP2, Actions planned (page 39).

‘[…] in order to improve the working conditions of foreign fishing crews, the Taiwan government will provide more living and leisure facilities.’

IV. The corporate responsibility to respect human rights

B. Actions taken

• State encouragement of respect by business for international human rights standards (page 11)

‘The Taiwan government encourages businesses to engage in responsible business behavior, and has adopted internationally recognized corporate social responsibility standards, such as the UNGPs, the UN Global Compact, ILO Conventions and the OECD Guidelines for Multinational Enterprises.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP3, Actions taken (page 41).

‘The Taiwan government also provides resources and support, including the following: […] it expressly provides in the “Company Act” that companies must encourage enterprises to share profits with employees […].’

• Respect for employee interests and the views of stakeholders (page 12)

‘[…] the Taiwan government actively provides guidance to laborers, focusing on such matters as formation of unions, creation of an environment that is conducive to a smoothly operating union, support for women’s employment, and assistance with the elimination of employment barriers.’

Appendix 1: Concrete actions taken by Taiwan to fulfill the state obligation to protect

• Government procurement (page 25)

‘Article 98 of the “Government Procurement Act” stipulates that for a winning tenderer which employs more than 100 persons locally, aborigines or persons with physical or mental disabilities shall account for a minimum of two percent of the total number of employees during the term of contract performance; otherwise, the foregoing tenderer shall pay a fee in lieu of performance and shall not hire foreign workers to make up the shortage in question.’

• Promotion of international consensus and cooperation (page 28)

In line with [promoting the incorporation of environmental, social responsibility, and human rights standards into free trade agreements, as well as designing impact assessment and monitoring mechanisms], Taiwan has included CSR, environmental, and worker rights clauses, as well as “general exceptions,” in many of its trade and investment agreements […].’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP9, Actions taken (page 49).

• Other legislative action and measures (page 29)

‘In order to better protect the rights and interests of temp workers, Articles 2, 9, 22-1, 17-1, 63, 63-1 and 78 of the “Labor Standards Act” were amended or newly added in May and June of 2019. These articles came into force on May 17, 2019 and June 21, 2019. The amendments expressly define temp workers work on non-fixed term contracts. The amendments also (a) prohibit client firms from reclassifying regular employees as temp workers; (b) provide that client firms and temp agencies shall be jointly and severally liable for the compensation that an employer is required to pay, and that if the temp agency is fined by the competent authority for failure to pay wages due to a temp worker, the temp worker may demand payment from the temp agency; and (c) strengthen protections for the labor rights of temp workers.

The “Occupational Safety and Health Act” is enacted to protect workers’ safety and health and to prevent occupational accidents. Article 21, paragraph 3 of the “Factory Management Act” stipulates that: “The factory shall exercise due care in manufacturing, processing and using dangerous objects. When significant environmental pollution or workplace accident seriously affects nearby factories or public safety, the municipal, county, or city authorities may order the factory to suspend operations and take corrective action. After the cause for suspension of operations has been addressed, the factory may apply to the municipal, county, or city authorities to resume operations.”’

Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• Governments can provide information and support to enterprises. The Taiwan government has implemented several regulations and measures to provide enterprises with guidance and support, including the following:’ (page 31)

‘Article 235-1, paragraph 1 of the “Company Act” provides as follows: “A fixed amount or ratio of profit of the current year distributable as employees’ compensation shall be definitely specified in the Articles of Incorporation.” The purpose of this provision is to encourage companies to share profits with employees.’

Appendix 3: Concrete actions taken by Taiwan to provide effective remedy systems

• Labor disputes (page 36)

‘Regarding labor disputes, in order to provide alternative dispute settlement mechanisms, the “Act for Settlement of Labor-Management Disputes” provides for mediation and arbitration. In addition, the “Labor Incident Act,” which took effect on a January 2020, provides for special labor issue courts that can address labor incidents quickly, professionally, and effectively. All parties enjoy equal status before the court, which that will serve to fairly protects the rights and interests of both employees and employers, and also promotes harmonious labor relations.’

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