董事長的話

Message from the Chairman

In 2023, as the global effort to achieve net zero emissions accelerates, the European Union's Carbon Border Adjustment Mechanism (CBAM) has begun trial implementation. Taiwan has enacted the “Climate Change Response Act,” incorporating the 2050 net zero emissions goal and elevating the level of climate governance to seek adaptation and mitigation strategies in response to potential impacts from extreme weather caused by climate change. The Taiwan Stock Exchange (TWSE) has aligned itself with international trends and government policies, jointly investing with the National Development Fund of the Executive Yuan to establish the “Taiwan Carbon Solution Exchange,” assisting enterprises in transforming to meet carbon reduction and carbon neutrality goals. In addition to establishing the carbon exchange, Taiwan has amended laws to lower the thresholds for reporting and announcing large shareholdings, promoting corporate sustainable development and creating a sound ESG ecosystem. According to the “CG Watch 2023” report released by the Asian Corporate Governance Association (ACGA) in December 2023, Taiwan ranked third in corporate governance among 12 countries in Asia, alongside Singapore, trailing only Australia and Japan, achieving its best ranking ever.

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2023 Market Overview

TAIEX Annual Growth

26.83%

Trading value of listed securities increased by

12.81%

Market value of listed securities increased by

28.41%

Number of listed companies rose from 971 to

997

Number of ETFs grew from 143 to

153

ETFs AUM up to

1.87trillion in TWD

Cumulative number of investors
grew to

12.51million

The population aged 20-30 opening accounts has surpassed

50% of that age group

Price-to-book ratio

2.12

Price-to-earnings ratio

21.12

Cash dividend yield reached 3.37%, including stock dividends rising to

3.47%

Market value percentage held by foreign Investors remained stable at

40%

Total foreign net buy for the year

29.478billion in USD

2023 Sustainability Performance Highlights

  • 88,520 metric tons of CO2e were traded on the first day of carbon credit trading.
  • 100% use of LED lighting in offices and warehouses.
  • 100% use of green energy in TWSE offices in Taipei 101.
  • Paper procurement dropped 5%.
  • Green energy usage ratio reached 19.52%.
  • Participated in the WFE's "Ring the Bell for Gender Equality" initiative for four consecutive years.
  • Donated a total of TWD 252.11 million towards social welfare.
  • Established the ESG InfoHub and Investment InfoHub to enhance financial inclusion.
  • Expanded powers of the Sustainable Development Committee.
  • Threshold for reporting substantial shareholding reduced from 10% to 5%.
  • There were 98% of listed companies that complied with advance reporting of insider shareholding changes.
  • Percentage of women in senior management positions reached 30%.
  • Interval of market information disclosure during intraday odd lot trading shortened from 10 to 5 seconds.
  • Signed a Declaration of Support for the ISSB's Climate-related Reporting, unveiled at COP28.
  • Five ESG ETFs linked to the TWSE Group indices were under the criteria for review of ESG funds published by the FSC and listed in the ESG funds on FUNDCLEAR.
  • The total AUM of all applications under TIP
    sustainability-related indices has surpassed TWD 290 billion, with 426,000 ETF beneficiaries.
  • Purchased TWD 200 million in Taiwan Power Company green bonds to support renewable energy development.
  • Taiwan ranks 3rd among Asian countries, our best ranking ever, in ACGA's "CG Watch 2023."
  • Awarded by the FSC's Financial Information Sharing and Analysis Center (F-ISAC) for excellence in information sharing.
  • Received best employer award at the Information Management Association's inaugural "IT Matters Awards."
  • Recognized by the Executive Yuan for excellence in the 2022 audit of government agencies' cybersecurity.
  • BS 10012
    Personal Information Management System (PIMS)
  • ISO 22301
    Business Continuity Management System (BCMS)
  • ISO 9001
    Quality Management System (QMS)
  • ISO 20000
    Service Management System (SMS)
  • Expanded the scope of
    ISO 27001
    Information Security Management System (ISMS) certification to cover all of the TWSE in 2023.

Sustainable Strategies

As the heart of the securities market, the TWSE is responsible for promoting economic development and maintaining the sound operation of the market. As sustainable development is increasingly adopted by countries and institutions around the world, the TWSE eagerly answers the call to embrace sustainability issues. We have formulated our sustainable strategies around the two themes of “Sustainable Market” and “Sustainable Responsibility,” aiming to nurture the long-term stable growth of the Taiwan securities market while also promoting ESG core values.

Sustainable
Market

Sustainable Responsibility

ESG InfoHub

ESG InfoHub

  • Driving Innovation through ESG Data Integration
  • Added Functions to Enhance Understanding
  • To Sustainability and Beyond
Establishment of the Taiwan Carbon Solution Exchange

Establishment of the Taiwan Carbon Solution Exchange

  • Achieving Net Zero 2050
  • International Carbon Credit Trading Platform
  • TCX Carbon Academy
SDG Carbon Reduction Series

SDG Carbon Reduction Series

  • Reducing Carbon Emissions, Safeguarding the Earth's Future
  • “Plant trees and let love take root in Taiwan” activity series
  • “Support local produce; it's delicious and safe” activity series

Implementing SDG Actions 2023 Achievements

  • No Poverty

    • Sponsored the Financial Services Education Fund, Financial Literacy for Youth (FLY) Courses, the College of Global Banking and Finance, and other talent development programs.
    • Donated to social welfare programs including healthcare, disease treatment, care for vulnerable groups, and emergency assistance.

  • Zero Hunger

    • Made contributions and assisted in providing meals for the underprivileged or rural students and elderly people.

  • Good Health and Well-Being

    • A variety of benefits are offered by the TWSE and the Employee Welfare Committee, such as group insurance, marriage and childbirth subsidies, and wellness programs.
    • Employees are encouraged to bring family members to the annual sports meet.

  • Quality Education

    • Pooling the resources from various sectors and working with NGOs plus leading universities, the TWSE held eight sessions of the “ESG Talent Cultivation” courses, with over 540 participants.
    • Signed a MOU with BSI to jointly conduct an international standard certification course to train professionals in carbon credit trading.
    • Worked with campus assistance programs to provide for the basic needs of vulnerable students, allowing them to complete education.
    • The TWSE launched the “Junior High School Version of Wealth Management Investment Age-Specific Teaching Plan” to deepen the junior high school students' foundation of financial literacy.
    • Participated in the 2023 SDG Asia Exhibition with the theme “Taiwan Securities Market Greets Sustainable Innovation,” to raise awareness and promote understanding of ESG, TIB, financial fraud prevention and financial literacy.
    • Regularly issued TWSE publications, including the annual report, sustainability report, monthly reports of the centralized market, latest international securities market regulations and development along with the Guide to Investing in Taiwan.

  • Gender Equality

    • Participated in the WFE's “Ring the Bell for Gender Equality” initiative.
    • The TWSE Board of Directors includes four female directors and one female supervisor, accounting for 27.78% of board seats.
    • Conducted training on the prevention of sexual harassment in the workplace and prevention of unlawful infringement in the workplace, with 576 participants.

  • Affordable and Clean Energy

    • Adopted 100% green power for offices in Taipei 101. TWSE's First Data Center completed the purchase of green energy.
    • TWSE's First Data Center completed the purchase of green energy.
    • Green energy usage ratio reached 19.52%.

  • Decent Work and Economic Growth

    • Strengthened the listing system of venture capital companies, and continues to support the development of startups.
    • TIB encourages businesses with key technologies and innovative capabilities or business models to raise funds on the securities market.
    • Continues to support startup circles and collaborate with government agencies and resources to attract listings through multiple channels and actively support the development of startups.

  • Industry, Innovation, and Infrastructure

    • Drafted relevant strategies and action plans for constructing Taiwan's ESG ecosystem in cooperation with the FSC's “Sustainable Development Action Plans for TWSE and TPEx Listed Companies.”
    • Launched the new ESG InfoHub website to integrate listed companies' ESG information, facilitating investors' understanding and decision-making process.
    • As of year-end 2023, the TWSE Group has launched 30 ESG-related thematic indices, which have been authorized to diversified applications, reflecting the performance of stock portfolios with sustainable characteristics among companies publishing sustainability reports in Taiwan.
    • ESG-related indices have been successfully licensed to issue numerous products and applications, including ETFs, ETNs, index futures, index funds, and investment performance tracking indicators for government retirement funds, with a total AUM of over TWD290 billion.

  • Reduced Inequalities

    • Assisted securities firms in enhancing information security and promoting their digital transformation.
    • Strengthened monitoring through CPAs, underwriters, and other intermediaries.
    • Assisted the FSC in reducing the threshold for declaration and public disclosure of substantial shareholding from 10% to 5%, so that significant changes in shareholding will be reported in a timely and transparent manner.
    • Established suitable management approaches, training programs, grievance channels, and related policies to protect the rights and interests of all employees.

  • Responsible Consumption and Production

    • Continue to observe companies' sustainability practices during their listing and review process.
    • Promoted the evaluation mechanism for stewardship for institutional investors to enhance stewardship information disclosure and transparency.
    • In line with the "Corporate Governance 3.0 – Sustainable Development Roadmap,” continue to raise standards for items in the Corporate Governance Evaluation.
    • Encourage companies to publish sustainability reports and carbon footprint verification.

  • Climate Action

    • Established the TCX. Promoted the SDG Carbon Reduction Series of activities.
    • The TCX launched its international carbon credit trading platform and completed the first transaction on December 22, 2023, with 27 companies participating on the first day of trading for a total transaction of 88,520 metric tons of CO2e.
    • Promoted the SDG Carbon Reduction Series of activities, focusing on “Reducing Carbon Emissions, Safeguarding the Earth's Future.”

  • Life Below Water

    • Donated to relevant associations to help protect the oceans and coastlines, plus prevent the overdevelopment and destruction of the coastlines in Taiwan.
    • Donated to associations that promote environmental education to help schools at all levels promote environmental education and carry out beach cleanup activities.

  • Life on Land

    • Made donations to associations dedicated to increasing forest coverage and biodiversity, to safeguard the environment and plant trees for greenification.
    • Supported associations involved in hands-on education to improve understanding of ecological sustainability, so as to raise awareness of issues such as land and natural resource utilization.

  • Peace, Justice, and Strong Institutions

    • In addition to regular management of listed companies, spot checks and verification of material information may be conducted from time to time.
    • To ensure that brokers are in regulatory compliance, conducted regular audits, special audits, and audits targeting their operations to prevent money laundering and counter terrorism financing.
    • Reported suspicious investment fraud advertisements from online media platforms to the FSC, and legally requested the media platforms to take them down, thereby stopping investment fraud ads at the source.
    • Carried out market surveillance and early warning operations to maintain market order, including auditing illegal transactions, recording and reviewing TV investment programs.

  • Partnerships for the Goals

    • Signed the third MOU with the Korea Exchange (KRX).
    • As a contributing participant in international organizations, the TWSE aims to enhance global visibility and strengthen Taiwan's ties with markets worldwide.
    • Joined the International Emissions Trading Association (IETA) to stay on top of global carbon trading trends and achieve a higher international profile.

No Poverty

  • Sponsored the Financial Services Education Fund, Financial Literacy for Youth (FLY) Courses, the College of Global Banking and Finance, and other talent development programs.
  • Donated to social welfare programs including healthcare, disease treatment, care for vulnerable groups, and emergency assistance.

Milestones of Sustainable Development

2010
  • The TWSE introduced the “Corporate Social Responsibility Best Practice Principles for TWSE/ GTSM Listed Companies.”
  • The TWSE unveiled the “Ethical Corporate Management Best Practice Principles for TWSE/ GTSM Listed Companies.”
  • The TWSE launched the “TWSE RA Taiwan Employment Creation 99 Index.”
  • 2010
    2010
    • The TWSE introduced the “Corporate Social Responsibility Best Practice Principles for TWSE/ GTSM Listed Companies.”
    • The TWSE unveiled the “Ethical Corporate Management Best Practice Principles for TWSE/ GTSM Listed Companies.”
    • The TWSE launched the “TWSE RA Taiwan Employment Creation 99 Index.”
  • 2011
    2011
    • The TWSE organized the “Business Integrity and Corporate Social Responsibility for Listed Companies Forum” for four consecutive years.
  • 2013
    2013
    • The FSC inaugurated the “Corporate Governance Roadmap 2013.”
    • The TWSE established the Corporate Governance Center.
  • 2014
    2014
    • The TWSE joined the WFE Sustainability Working Group.
    • The TWSE created the “TWSE RAFI® Taiwan High Compensation 100 Index.”
  • 2015
    2015
    • The TWSE made it mandatory for certain TWSE-listed companies to prepare and publish a CSR report.
    • The TWSE launched the “Taiwan Corporate Governance 100 Index.”
  • 2016
    2016
    • The TWSE announced the “Stewardship Principles for Institutional Investors.”
  • 2017
    2017
    • TIP launched the “FTSE4Good TIP Taiwan ESG Index,“ and “TIP Taiwan Market Small/Mid-Cap Corporate Governance Index.”
  • 2018
    2018
    • The FSC introduced the “New Corporate Governance Roadmap.”
  • 2019
    2019
    • The TWSE amended the “Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE-Listed Companies” following the latest GRI Standards' update.
    • TIP launched the “Taiwan Labor Rights Index.”
  • 2020
    2020
    • The FSC announced the “Corporate Governance 3.0 – Sustainable Development Roadmap.”
    • TIP launched two sustainability indices.
  • 2021
    2021
    • Amended the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE-Listed Companies” into the “Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE-Listed Companies.”
    • Amended the “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies” into the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.”
    • TIP launched eight sustainability indices.
  • 2022
    2022
    • The FSC launched the “Sustainable Development Guidemap for TWSE and TPEx Listed Companies.”
    • The TWSE regulated sustainability disclosure indicators and climate-related information for listed companies.
    • TIP launched eight sustainability (including green energy) indices.
  • 2023
    2023
    • The FSC announced “Sustainable Development Action Plans for TWSE- and TPEx- Listed Companies (2023).”
    • The FSC released the “Roadmap for Taiwan listed companies to align with IFRS Sustainability Disclosure Standards.”
    • TIP launched six sustainability indices.
    • The TWSE and the National Development Fund of the Executive Yuan jointly established the TCX.
    • The TCX international carbon credit trading platform was launched.
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