The Taiwan Monthly

Sep. 2023

Index Announcement

Introduction of TIP ESG Index Data Service

Taiwan Index Plus Corp. (TIP) is committed to the development and promotion of Taiwan Equity ESG indices. As of the end of August, it has published 27 ESG indices. Among them, 4 ESG ETFs and 1 ESG index fund have been compiled using the results of the “Taiwan Sustainability Rating System" and recognized by the competent authorities.

 

Due to ESG investments rely on ESG databases as a basis for analysis, TIP further combines Index data and ESG data generated from the “Taiwan Sustainability Rating System" to launch the “TIP ESG Index Data Service.” Users could utilize two new indices that TIP launched in March for this service – the "TIP Taiwan ESG Report Index," which includes about 650 TWSE- and TPEx-listed companies that published annual ESG reports. The other one is the "TIP Taiwan Sustainability Ratings Investment Grade Total Market Index," which consists of 263 companies with ESG rating as BBB or higher based on Taiwan Sustainability Rating System."  The TIP ESG Index data subscribers could receive a list of ESG-themed index constituents at one time.

 

The TIP ESG Index Data Service provides constituents data of these two indices (e.g., lists and weightings), as well as detailed ESG assessment information on each constituent company, including overall ESG performance, sub-layer analysis, performance on key issues, records of governmental rulings and penalties, analysis of major events and analysis of controversial industries, etc. It also provides them in modularized data sets, making it convenient for users to choose the combination of data sets they need.

 

 

The Taiwan Sustainability Rating System is established by the Center for Corporate Sustainability (CCS) of National Taipei University. This ESG rating system is based on both domestic and international sustainability norms, regulations, policies, and academic researches. It incorporates qualitative and quantitative indicators for ESG evaluation. The evaluation is based on public information, follows standardized evaluation processes, and allows for industry-to-industry, cross-industry, and year-to-year comparisons. Additionally, it has a mechanism for assessing industry significance and controversies on a quarterly basis, which enables real-time feedback on ESG performance for companies under evaluation. The Taiwan Sustainability Rating System is highly rooted on domestic and international standards and policies, and it also has high coverage rate of companies being assessed. The Taiwan equity ETFs that used the Taiwan Sustainability Rating System for ESG screening are mostly recognized as ESG funds. The ESG data generated based on this system is high quality and reliability.

 

 

The ESG index data service offers a turnkey, modular service that combines index data with multilevel ESG evaluation data. Through the existing index information service platform, users can access a comprehensive list of constituents that meet ESG evaluation standards, along with their objective and abundant ESG evaluation data. For any inquiries or requirements regarding ESG index information services, please contact TIPClient@taiwanindex.com.tw.