The Taiwan Stock Exchange (TWSE) released the “2024 (11^th Round) Corporate Governance Evaluation Indicators” which cover four dimensions with a total of 75 indicators. The applicable period is from January 1 to December 31, 2024, and the evaluation results are expected to be published by the end of April 2025.

The amendments to the 11^th Round Corporate Governance Evaluation are in compliance with the “Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies (2023)” and the “Capital Market Roadmap”, which also refer to domestic and international corporate governance policies, sustainable development trends, regulations, and feedback from various fields. In total, four new indicators are added, nine deleted and seven amended in order to continuously urge enterprises to act in accordance with various corporate governance mechanisms as well as sustainable development.

The TWSE further explained that to strengthen corporate governance and promote the implementation of sustainable development, the indicator “Disclosure of the policy of linking the salary and remuneration of senior managers with ESG related performance evaluation” is added to promote the achievement of sustainable development goals by TWSE- and TPEx- listed companies; furthermore, the indicator “the board of directors approval for the ESG report” is also added to enhance the responsibility of TWSE- and TPEx- listed companies in preparation of their ESG reports. In addition, the two indicators “Disclosure of the annual emissions of greenhouse gases (GHG) for the past two years” and “Setting management policies for reduction of GHG emissions” are separate from the original indicators to encourage TWSE- and TPEx- listed companies to strengthen GHG disclosures and actively achieve the goals and practices of net-zero emission.

In recent year, the TWSE has continued guiding companies in implementing sustainable development, and gradually expanded the indicators of the “Promoting sustainable development” dimension and increased the weighting year by year, making it the dimension with the highest weighting in this round of evaluation. In order to evaluate the performance of TWSE- and TPEx- listed companies in various ESG aspects, and provide a reference for investors’ ESG investment decisions, the TWSE is planning to use the current “Corporate Governance Evaluation” framework as the basis, while taking into account ESG environment and social trends worldwide, with the goal of gradually transforming the evaluation into the “ESG Evaluation” by 2026.

The 11^th Round Corporate Governance Evaluation Indicators are available at Corporate Governance Center/Evaluation System/Corporate Governance Evaluation System. (https://cgc.twse.com.tw/evaluationCorp/listCh)