Taiwan Depository & Clearing Corporation

Since 2020, TDCC has been providing ESG rating information for Taiwan-listed companies through its "Investor Relations Platform (ESG IR Platform)," gradually expanding the scope of ESG rating data. In addition to the corporate governance evaluation scores of the Taiwan Stock Exchange and Taipei Exchange, it has provided ESG rating information from six global benchmarking organizations, including FTSE Russell, ISS ESG, Moody's, MSCI, S&P Global, and Sustainalytics, for issuing companies and investors. It also offers responsible investment screening tools and other services, continuously promoting the market's emphasis on ESG.

In line with the Financial Supervisory Commission's " Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies (2023) " announced on March 28th, TDCC has developed the "TDCC Code of Conduct for ESG Ratings Providers Draft" by referencing the International Organization of Securities Commissions (IOSCO) "ESG Ratings and Data Products Providers Final Report" and the " The Code of Conduct for ESG Evaluation and Data Providers" published by the Financial Services Agency of Japan. Taking into account practical conditions in Taiwan's market and international trends, this draft guideline will require ESG rating agencies collaborating with the ESG IR platform to comply with declarations. It is hoped that this will help enhance the quality and transparency of ESG rating information provided by industry participants and strengthen communication and cooperation with relevant stakeholders, further promoting the sustainable development of Taiwan's listed companies.

Te-Hsiang Chen, President of TDCC, stated that ESG ratings have been widely applied in investment processes and financial product development. Market participants are increasingly concerned about issues such as improving the quality and transparency of ESG ratings. The formulation of this Code of Conduct is a significant step towards a more sustainable, transparent, and responsible direction, in line with international trends. In the future, TDCC will continue to seek opportunities for cooperation with various market participants, providing richer and higher-quality ESG information and assisting in promoting corporate focus on ESG practices, thereby jointly advancing the development and progress of Taiwan's capital market.

This draft Code of Conduct includes 7 principles and 31 practical recommendations, covering research quality, independence and conflicts of interest, transparency, confidentiality obligations, human resources, interactions between ESG rating agencies and rated companies, and the availability of ESG ratings, among other topics. Versions in both Chinese and English have been published on the TDCC's official website and ESG IR Platform website. During the period from September 12th to October 11th, stakeholders are welcome to express their opinions via email. TDCC will fully consider stakeholders’ feedback, revise the guidelines, and formally publish the Code of Conduct. Subsequently, it will request ESG rating agencies to comply declaration.

Draft Code of Conduct Publication Website: https://irplatform.tdcc.com.tw/