The Taiwan Monthly

ESG

TWSE encourages institutional investors to fulfill stewardship and enhance the quality of information disclosure

The purpose of institutional investor stewardship is to guide institutional investors to fulfill their responsibilities, take into consideration the ESG risk and performance of the investee company in the investment process. This is also to promote the sustainable development of the investee company by paying continuous attention to it, attending its shareholders' meeting, exercising voting rights, holding constructive dialogues, etc., so as to enhance the long-term value of both parties.

 

According to the " Corporate Governance 3.0 - Sustainable Development Roadmap," in order to continuously enhance the stewardship practices of institutional investors and the quality of relevant information disclosure, and increase the influence of institutional investors on corporate governance, the TWSE plans to form an Advisory Committee on the Stewardship Code of Institutional Investors. This includes establishing a public evaluation mechanism to regularly hold the evaluation of stewardship information disclosure every year and formulate a list of companies with better performance.

 

The evaluation standard this year includes two aspects of formulation and disclosure of policies and stewardship report content, for a total of 30 indicators. The former includes the evaluation of the integrity of stewardship policy disclosure, conflict of interest management policy and voting policy, while the latter is about the stewardship report and voting records of the shareholders' meeting. This includes the case description, dialogues and interaction with the investee company, negotiation results and follow-up tracking as well as voting records by company and by case, and the convenience of querying stewardship information on the website and its practicability are also taken into account.

 

The list of institutional investors with better disclosure of stewardship information in 2021 has been published on the website of the Corporate Governance Center (https://cgc.twse.com.tw/stewardshipInfo/listEn), and the TWSE advocate institutional investors to continue to implement stewardship practices and improve information disclosure after signing the stewardship code. Through publicity and the release of stewardship disclosure suggestions, the TWSE will continue to promote the active interaction between institutional investors and investee companies and enrich the quality of information disclosure, so as to improve the overall stewardship level.

 

For further inquiries, please contact Mr. Yu at 1248@twse.com.tw .