First-ever Domestic Release of Code of Conduct for ESG Ratings Providers, TDCC Promotes Rating Transparency


In line with the Financial Supervisory Commission's “Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies (2023)," TDCC took a groundbreaking step in December 2023 by domestically releasing the "Code of Conduct for ESG Ratings Providers." This holds significant importance for the sound development of ESG rating agencies.

The guidelines drew inspiration from similar standards released by the International Organization of Securities Commissions (IOSCO) and the Financial Services Agency (FSA) of Japan in 2021 and 2022, respectively. After considering domestic practices and industry insights, TDCC formulated seven principles and 31 guidelines, aiming to establish a common standard for ESG rating agencies.


TDCC noted the explosive growth in the application of ESG ratings globally, prompting regulatory plans by supervisory authorities in various countries. Besides IOSCO and the FSA, the European Union, the United Kingdom, Singapore, and other markets have proposed relevant frameworks to manage ESG rating agencies. TDCC stands out as the world's first entity using ESG ratings to issue a code of conduct. The corporation hopes to enhance transparency in ESG ratings and safeguard the interests of rated companies in Taiwan through close collaboration with ESG rating agencies domestically and internationally.

Te-Hsiang Chen, President of TDCC, highlighted that the ESG Investor Relations platform operated by TDCC already includes not only Taiwan Corporate Governance Evaluation System, but ratings from six major global ESG rating agencies for over 600 TWSE-listed and TPEx-listed companies in Taiwan, making it a significant ESG rating user in the country. The release of this code of conduct aligns with international standards and sets a benchmark for the market. TDCC will continue to act as a bridge between rated companies in Taiwan and rating agencies.

As a major market infrastructure in Taiwan's capital market, TDCC, in addition to its core securities settlement services, has been actively involved in digital services in recent years. This includes eVoting, eMeeting, eNotice, ESG investment tools, and more. With its corporate strategy in "Innovation, Resilience, Sustainability, and Financial Inclusion," TDCC remains committed to providing diversified digital services.