The Taiwan Stock Exchange (the “TWSE”) announced the 2022 (9th Round) Corporate Governance Evaluation. The system consists of four dimensions with a total of 78 indicators, and will be effective from January 1 to December 31, 2022. The evaluation results of 2022 are expected to be published by the end of April 2023.

The amendments made to the 9th Round evaluation are in accordance with the "Corporate Governance 3.0 - Sustainable Development Roadmap," and refers to developmental trends, regulations, policies of corporate governance in Taiwan and abroad as well as feedback from evaluated companies and the CG eco-system. Five indicators are added, six indicators deleted and 17 amended, plus six indicators types adjusted in order to continuously drive the corporate governance culture of enterprises. In addition, to encourage enterprises to pay more attention to issues related to the environment, society and governance (“ESG”) as well as the practice of sustainability development, the name of the "Putting Corporate Social Responsibility into Practice" category is revised to "Striving for Sustainable Development."

The TWSE further explained that to strengthen corporate governance, promote sustainable development and enhance related information quality, amendments were made to “setting up a nomination committee, a risk management committee, a sustainability committee or any other functional committees other than statutorily required,” encouraging establishment of functional committees for the purpose of developing supervisory functions and strengthening management mechanisms. “The board of directors shall supervise sustainable development” was added to the indicator, advocating the board to actively participate in the promotion of sustainable corporate development, and ESG information disclosure according to the SASB standards and the TCFD frameworks were included to recommend the companies to strengthen ESG information disclosure with reference to international standards.

In addition, following the Financial Supervisory Commission's policy to strengthen cyber security management at listed companies, if companies have implemented international standards on information security and obtained third-party certification, a bonus point would be awarded after this amendment.

The indicators of the 9th Round Corporate Governance Evaluation can be found in Corporate Governance Center/Corporate Governance Evaluation System (https://cgc.twse.com.tw/evaluationCorp/listCh).