The Taiwan Monthly
ESG
The 2025 (12th Round) Corporate Governance Evaluation Indicators have been released
The Taiwan Stock Exchange (TWSE) released the “2025 (12th Round) Corporate Governance Evaluation Indicators” which cover four dimensions with a total of 70 indicators. The applicable period is from January 1 to December 31, 2025, and the evaluation results are expected to be published by the end of April 2026.
The revision of the 12th evaluation follows the “Sustainable Development Action Plans for TWSE and TPEx Listed Companies (2023)” and “Building Taiwan into an Asian Asset Management Center” announced by the competent authority and ESG Evaluation transformation plan, which also refer to domestic and international corporate governance and sustainable development trends, regulations, policies, and feedback from various sectors. A total of 9 new indicators were added, 11 indicators revised, 14 indicators deleted, and question types of 4 indicators adjusted to continuously promote enterprises’ attention to various corporate governance mechanisms and sustainable development.
The TWSE stated that in order to guide companies to value shareholder rights, strengthen their ability to create long-term value, attract international capital injection, and actively interact with shareholders, the TWSE has revised the “Corporate Governance Best Practice Principles for TWSE and TPEx Listed Companies” and provided the “Template for Corporate Value Enhancement Plan”. The indicator, “formulating specific measures to enhance corporate value and submitting them to the board of directors, and disclosing relevant information on the “Corporate Value Enhancement Plan Zone” of the Market Observation Post System”, has been also included in the 12th evaluation to gain the attention of the board of directors of TWSE/TPEx listed companies in regards to formulating the plan and voluntarily upload it to the aforementioned zone for external disclosure so that investors may understand the current status and future plans of the companies. The Template provided by the TWSE is aimed at encouraging companies to analyze annual capital costs, profitability, market evaluation, and corporate governance status, as well as disclosing their specific measures to enhance corporate value. The goal is to internalize “shareholder value enhancement” and “governance transparency” as the core of corporate culture for the construction of a long-term stable and sustainable capital market.
To strengthen corporate governance and promote sustainable development, several other indicators have been added in the 12th evaluation. For instance, to encourage companies to pay attention to climate change issues and strengthen the disclosure of greenhouse gases, the indicators including “disclosing the categories of GHG scope three and annual emissions thereof in the past year,” “formulating an environmental management system,” “formulating an energy management plan,” and “introducing internal carbon pricing” are added, with the indicator, “disclosing the carbon reduction goal, strategy and action plan for 2030”, also included for extra points. In addition, to promote the company’s emphasis on employees’ career development, communication, and interaction with employees, new indicators including “formulating employee training and development plans to enhance employee career abilities” and “conducting regular employee satisfaction surveys” are added. To encourage companies to prioritize the protection of consumer rights, new indicators including “formulating a personal data protection policy” and “formulating policies and appeal procedures to protect consumer or customer rights” are added. Also, to strengthen the competency of sustainability related functional committees, the new indicators which include “establishing a board-level sustainable development committee,” have been added.
In recent years, the TWSE has been continuously promoting the implementation of sustainable development by companies. In order to further identify the performance of TWSE/TPEx listed companies in various ESG aspects and provide investors with a reference for ESG investment decisions, the TWSE has planned to transform the current “Corporate Governance Evaluation” framework into an “ESG evaluation” in 2026. For a smooth transformation, references to domestic and international policies and trends were taken this year, with a total of seven indicators in environmental and social dimensions added to continuously increase the weightage of indicators in the “promoting sustainable development” segment to nearly 50% to gradually achieve the planning and goals of transformation to ESG evaluation.
The content of the 12th Corporate Governance Evaluation Indicators has been made available in the Corporate Governance Center/Corporate Governance Evaluation Zone ( https://cgc.twse.com.tw/evaluationCorp/listCh ) for viewing and downloading. To access the “Corporate Value Enhancement Plan Zone,” please visit Market Observation Post System/Investment Zone/Corporate Value Enhancement Plan Zone” (https://mops.twse.com.tw/mops/web/t100sb16).
For further information, please contact Ms.Yang at 1114@twse.com.tw.