The Taiwan Monthly
ESG
The award ceremony for the 11th corporate governance evaluation was a Success
The Taiwan Stock Exchange Corporation (TWSE) along with Taipei Exchange (TPEx) jointly held the award ceremony for the 11th “Corporate Governance Evaluation” at 2:30 P.M. today (June 12th), recognizing listed companies ranked in the top 5% of the 11th “Corporate Governance Evaluation,” the top 5% of listed companies with a “market capitalization of NT$5 billion to NT$10 billion,” the top 1% of listed companies with a “market capitalization less than NT$5 billion,” as well as listed companies that made the most progress this year. The ceremony invited Financial Supervisory Commission Chairperson Jin-Lung Peng to deliver a speech and serve as the award presenter, in addition to inviting heads of competent authorities along with securities-related units to participate in the event.
TWSE Chairperson Sherman Lin said during his speech that a total of 1,749 TWSE/TPEx-listed companies were evaluated this year, of which 49 TWSE-listed companies and 39 TPEx-listed companies ranked in the top 5%. In addition, there were 15 companies (7 TWSE-listed and 8 TPEx-listed companies) that ranked in the top 5% for 11 consecutive years. Their persistence in the pursuit of excellence has set a good example for the capital market. Chairperson Sherman Lin also pointed out that since the first “Corporate Governance Evaluation” was conducted in 2014, it has continued to guide TWSE/TPEx-listed companies to voluntarily augment their corporate governance as well as enhance their corporate culture of sustainable development. In recent years, the TWSE has continued to refer to domestic and international policies and directions, and gradually made adjustments to balance the weight of environmental, social, along with governance indicators, in order to achieve a smooth transition of the evaluation. The latest (12th) evaluation has added environmental and social indicators, such as setting a “carbon reduction target for 2030,” disclosing information on “Scope 3 greenhouse gas emissions,” and introducing “internal carbon pricing” and “employee career training.” At the same time, some governance indicators were merged or removed. With consideration to international and sustainable development trends, companies are encouraged to formulate “Corporate Value Enhancement Plan” and establish a “sustainable development committee.” The “Corporate Governance Evaluation” is expected to officially transition into an “ESG evaluation” in 2026.
During his speech, Financial Supervisory Commission Chairperson Jin-Lung Peng said that since the first version of the “Corporate Governance Roadmap” was implemented in 2013, the foundation of Taiwan’s corporate governance culture was gradually built with the collective efforts of all sectors, and a sound corporate governance system has become the key to attracting international investors and enhancing corporate competitiveness. This year’s evaluation results show that companies have made significant progress in “board functions,” “information disclosure,” as well as “sustainable development,” and also have a positive attitude towards innovative governance practices. Chairperson Peng further pointed out that the implementation of the “Corporate Governance Evaluation” system has shown three major results:
1. Strengthening internal management and risk management abilities of companies: The evaluation indicators guide companies to self-examine, which not only helps strengthen functions of the board of directors, but also encourage companies to expand risk management to “carbon reduction,” “human rights,” “intellectual property,” “cybersecurity,” and “supply chain,” thereby enhancing organizational resilience and facilitating sound operations along with sustainable development.
2. Gaining trust and increasing transparency in financial markets: The evaluation results have become an important basis for major institutional investors, such as the labor fund, life insurance companies, and asset management companies, to make investment decisions. Since their establishment to the end of April 2025, the “TWSE Corporate Governance 100 Index” and the “TPEx Corporate Governance Index” have outperformed the broader market during the same period despite recent market fluctuations, showing that the market continues to recognize and favor companies with outstanding corporate governance performance.
3. Responding to investors' expectations and attaching importance to shareholder value: The indicator “Corporate Value Enhancement Plan” was added in 2025 to become aligned with the international trend of companies attaching importance to shareholder value. The indicator encourages companies to more efficiently utilize their capital, increase the transparency of their information disclosures, and strengthen communication with stakeholders. The connection between evaluation and policy aims to guide companies to internalize shareholder value concepts, and actively communicate long-term business strategies to gain the market’s trust.
The TWSE aims to recognize the efforts made by outstanding companies to advance corporate governance through this award ceremony, so that there is healthy competition as well as mutual learning among companies, which will further strengthen the sustainable development and resilience of Taiwan's capital market, helping companies achieve sustainable development goals, and creating a culture of sustainability values in the capital market.
For further information, please contact Mr. Fan at 1394@twse.com.tw.