The Taiwan Monthly
Index Announcement
TIP ESG indices and applications introduction
As of the end of November 2023, TIP has developed 27 ESG-themed indices with an AUM of USD 4.8 billion. There were 10 ESG thematic indices licensed for ESG ETFs, with an AUM of approximately USD 1.5 billion. Among these, TIP currently has seven Funds recognized as ESG funds by regulatory authorities, including six ETFs and one index fund with a total AUM of USD 1.2 billion. Other index-linked products include index futures, ETNs, active funds, and more. The ESG product applications that linked with TIP ESG indices are very diversified. To know more details of Taiwan sustainability themed indices, please visit the official TIP website (link).
Table. Underlying Indices of ESG Funds
This table shows the ETFs or Index Funds that have been recognized as the underlying indices of the ESG Funds.
|
Index Name |
Launch Date |
ESG Rating Models |
ESG Indicators Used 1 |
Products or Applications |
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|
2015/6/29 |
Corporate Governance Evaluation System |
The top 20% of listed companies within the Corporate Governance Evaluation results for the most recent year |
Fubon TWSE Corporate Governance 100 ETF (00692) |
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|
2017/12/18 |
FTSE Russell’s ESG Ratings |
An ESG Rating of 2.9 or higher would be included; and an ESG Rating of lower than 2.4 would be removed. |
• Benchmark: Mandate of Labor Fund • Yuanta FTSE4Good TIP Taiwan ESG ETF (00850) • Active Fund: SinoPac Taiwan ESG Plus Fund • Index Futures: F4G TIP TW ESG Futures (E4F) |
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|
2022/1/3 |
|
1. The top 50% of Taiwan Sustainability Ratings Score 2. The top 50% of Taiwan Environmental Sustainability Ratings Score |
Hua Nan Taiwan Environmental Sustainability and High Dividend Index Fund |
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|
2022/12/5 |
|
1. Select companies ranked BBB or above within the Taiwan Sustainability Ratings Score, and remove the Blacklist based on ESG Negative Materiality Assessment. 2. Remove companies that engage in gambling, tobacco, erotic, controversial weapons. 3. Remove top 20% companies of Carbon Intensity Indicator. |
Capital TIP Customized Taiwan ESG Low Carbon 50 ETF (00923) |
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|
2022/9/26 |
Taiwan Sustainability Rating System |
2023/6/5 |
Taiwan Sustainability Rating System |
1. Include companies with scores on the "Taiwan Sustainability Ratings" rank in the top 50%, or existing constituents with scores ranking in the top 60%. 2. Remove companies listed on the Blacklist based on ESG Negative Materiality Assessment. 3. Remove companies listed on the Controversial Industries. |
Mega Taiwan ESG High Dividend Equal Weight ETF (00932) |
ESG Funds: The funds are in accordance with the principles of ESG funds issued by the Financial Supervisory Commission in July 2021 and listed in the ESG funds on FUNDCLEAR. (https://announce.fundclear.com.tw/MOPSonshoreFundWeb/ESG.jsp)
Data Date: September 30,2023
Note 1: Summary from the Index Rules, please refer to the TIP’s website for details.
Note 2: The index is compiled by the TWSE, and TIP was established in 2016.