The Taiwan Monthly

Jan. 2018

Corporate Governance

FTSE Russell introduces FTSE4Good TIP Taiwan ESG Index

  • Important new development for Taiwanese capital markets
  • Developed in partnership with Taiwan Index Plus Corp. the new index provides important new sustainability solutions for the region
  • First domestic Taiwan benchmark developed using FTSE ESG Ratings and data model
  • Reinforces growing global investor demand to integrate sustainability factors in investment portfolios

 

FTSE Russell, the global index and data provider, announces the launch of the FTSE4Good TIP Taiwan ESG Index. The index has been developed in partnership with Taiwan Stock Exchange’s (“TWSE”) wholly-owned subsidiary, Taiwan Index Plus Corp. (“TIP”).

 

FTSE Russell continues to see a growing demand, both in Asia and globally, for asset owners to integrate ESG considerations into their investment strategies. The FTSE4Good TIP Taiwan ESG Index is part of FTSE Russell’s extensive sustainable investment index and data offering and reflects the performance of companies listed on the Taiwan Stock Exchange that meet the globally recognised ESG inclusion standards used by the FTSE4Good Index Series.

 

The new index is constructed using the FTSE4Good Emerging Index with selection criteria covering ESG Ratings as well as financial performance criteria. The ESG Ratings are comprised of an overall Rating that breaks down into underlying ESG exposure measures and performance score that are built on over 300 individual indicator assessments. The index is designed for use in the creation of index tracking funds, derivatives and as performance benchmarks.

 

Jessie Pak, Managing Director, Asia, FTSE Russell, said:
“FTSE Russell has been partnering with the Taiwan Stock Exchange for over 15 years to deliver globally recognised benchmarks for the Taiwanese market. We are delighted to be building on this strong relationship to work with TIP to create benchmarks that support the growing market demand for sustainable investment and ESG products. FTSE Russell continues to be a leading innovator in the development of sustainable investment and ESG data models and indexes, proactively supporting our clients to incorporate ESG objectives in their investment strategies”.

 

Mr. Jan-yau HSU, Chairman of Taiwan Index Plus, said: 
“As sustainability has become an important part of investment decisions among international communities, market participants and regulators in Taiwan are placing a high priority in addressing and promoting social responsibility investment (SRI) and stewardship according to globally established ESG standards. Supported by TWSE, we are pleased to deepen our partnership with FTSE Russell to develop the FTSE4Good TIP Taiwan ESG Index, the first domestic benchmark to reflect the performance of Taiwanese companies in environmental, social and governance areas. This represents a new milestone for sustainable investing in Taiwan”. 

 

FTSE Russell is a leading provider in sustainable investment index and data solutions which includes the FTSE4Good Index Series, ESG Ratings and data model, Green Revenues data model and the recently launched FTSE Global Climate Index Series and FTSE ESG Index Series. The FTSE4Good Index Series is designed to capture a broad universe of companies that are working to manage and improve ESG performance. The selection criteria are based on international sustainability frameworks and many are consistent with the UN Sustainable Development Goals.  The criteria cover ESG risk management and performance, and based on a transparent and objective methodology result in the calculation of ESG Ratings that are used as a basis to determine index inclusion.