TAIPEI: 2019 was the year when ESG metrics gained significant attention in Taiwan, culminating with the launch of the world’s first ever, government-sponsored, investor relations platform.
To promote a sustainable capital market in Taiwan, Taiwan Depository & Clearing Corporation (TDCC) launched a bilingual IR platform in March 2019 that mainly features ESG evaluations. This provides a new assessment of how environmental, social, and governance (ESG) factors affect an entity’s long term sustainability.
The platform is the first of its kind in the world where the organization assisting the market regulator is in charge. TDCC also provided contact details for the listed companies.
Over the past year, TDCC has promoted the ESG tool by offering education seminars, consultations, plus offline and online networking events that are free to the top local companies listed on the Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEx). These include Taiwan Semiconductor Manufacturing Company (TSMC), Hon Hai Precision Industry Co., and other financial institutions, which combined account for almost 99 percent of market capitalization.
The listed companies can utilize TDCC’s platform to access the latest ESG reports and prepare for the growing demands of socially responsible investing. To get local as well as foreign institutional and retail investors on board, the platform will this year expand access, amid calls for transparency, responsibility, and sustainability.
Since last year, the TDCC has engaged international ESG rating service provider, the Netherlands-based Sustainalytics. It is also seeking partnership opportunities with more global ESG rating agencies in the years ahead.