Q1：What are the application year and the scope of rating data for the 1st ESG?
A1：The application period for the 1st (2026) ESG Evaluation Indicators is from January 1 to December 31, 2026, and the data scope includes matters disclosed on the MOPS, in the annual reports, sustainability reports, and corporate websites, events related to corporate governance and sustainable development, operations of shareholders’ meetings, Board of Directors, and independent directors, the relevant supervisory records of the FSC, TWSE, or TPEx, and the self-evaluation content of companies on the self-evaluation website, which serves as the scope of data for evaluation and analysis. If there is any deficiency not compliant with the corporate governance principles, the data analysis year is not limited to the year under evaluation, and the deficiency will be reported to the ESG Evaluation and Consultation Commission for the discussion of discretionary score reduction, subject to the severity of circumstances and the violation status.
Q2：What is the emphasis of the amendment this time regarding the separation of indicators related to water resources and waste, and the addition of indicator E-6: “Has the company formulated and disclosed its policies for promoting circular economy or waste management and relevant practices?”
A2：To encourage companies to attach attention to environmental issues, disclose relevant data, and adopt corresponding substantive management practices, we separated indicators related to water resources and waste (indicator E-5 disclosure of water consumption, E-7 disclosure of the total weight of waste, indicator E-4 disclosure of policies on the reduction of water consumption, and E-6 disclosure on waste management policies and relevant practices). Furthermore, to guide companies in strengthening the application of the circular economy (i.e., using environmental materials and recyclable designs for product designs and manufacturing processes of the manufacturing industry; improving resource consumption efficiency, reuse of packaging, and green procurement of the service industry), we included the relevant policies and practices in the scope of indicator E-6. In addition, considering the existing indicator for obtaining third-party verification for sustainability reports, we deleted indicator E-5 extra scoring requirements for the higher level (obtaining external verification for water consumption or the total weight of waste for the past two years).
Q3：For energy management, what is the emphasis for the amendments and scoring requirements of the newly added indicator E-9: “Has the company disclosed the energy consumption for the past two years?” Also, for the amended indicator E-10: “Has the company disclosed its issuance of or investment in sustainable development bonds?”
A3：To encourage companies to improve energy consumption efficiency and disclose the relevant data to minimize impacts on the environment, we added indicator E-9 to disclose the total energy consumption and the ratio of renewable energy in 2024 and 2025, and specified the data coverage scope (i.e., all plants and subsidiaries, parent company, and parent company and subsidiaries of consolidated financial statements) to secure scores. Indicator E-10 deleted the initial part of “investment in energy-saving or green energy-related environmental and sustainable machinery and equipment or investment in the green energy industry in Taiwan (e.g., renewable energy power plants),” mainly considering that investments in energy conservation and green energy are a part of energy management plans, which are within the scope of indicator E-8: “Has the company formulated and disclosed its energy management plan and the implementation status?” It was, thus, amended.
Q4：What is the emphasis of the amendment regarding indicator E-11: “Has the company disclosed its information related to corporate governance status, strategies, risk management, indicators, and targets regarding climate-related risks and opportunities with reference to the structure of IFRS S2?”
A4：In accordance with the newly added sustainable information section in the “Regulations Governing Information to be Published in Annual Reports of Public Companies,” we amended indicator E-11 to guide companies to connect to the IFRS Sustainability Disclosure Standards step by step. Enterprises can obtain the score when disclosing their information related to corporate governance status, strategies, risk management, indicators, targets, and disclosures of other core content regarding climate-related risks and opportunities, with reference to the structure of IFRS S2. The scope of the reporting entity shall be specified (i.e., the scope of preparation for the parent company only and consolidated financial statements is consistent, or the reporting entity is the company). For the disclosures of the core content, please refer to “Practical Guidance and Examples” under “Practical Guidance and Q&A” on the IFRS Sustainability Disclosure Standards Alignment Website (link: https://isds.tpex.org.tw/IFRS/front/#/main/practicalGuidance/PG_example).
Q5：What are the evaluation purposes and scoring requirements for the two newly added indicators related to nature, including indicator E-14: “Has the Company established and disclosed its biodiversity policy or commitment, and described its implementation status?” and indicator E-15: “Has the company established and disclosed its natural carbon sink strategies and measures, and described their implementation status?”
A5：To encourage companies to attach importance to biodiversity to reduce impacts of operations on natural environments, biology, and human beings, we added indicator E-14, and the score is obtained only when the following two scoring requirements are fulfilled at the same time: (1) Establish and disclose the biodiversity policy or commitment. (2) Disclose the substantive practices and achievements (i.e., ecological conservation actions, habitat restoration plans, and implementation status of ecological impact assessment) for implementing the policy or commitment during the year. Enterprises are also encouraged to make full disclosures according to the TNFD structure. Indicator E-15 is responding to the “Pathway to Net-Zero Emissions in 2050 – 12 Key Strategies.” We encourage enterprises to participate in natural carbon sink plans and actions to reduce impacts of operations on climate change; therefore, the indicator was added, and the score is obtained only when the following two scoring requirements are fulfilled at the same time: (1) Establish and disclose strategies and measures for promoting natural carbon sink, and describe the corresponding content of strategies and measures for the “Pathway to Net-Zero Emissions in 2050 – 12 Key Strategies.” (2) Disclose the implementation progress or achievements for the strategies and measures for the above-mentioned requirements during the year. For disclosure examples related to the “Taiwan Pathway to Net-Zero Emissions in 2050 – 12 Key Strategies,” please refer to the website of the “National Development Council” > the 9th of the 12 Key Strategies “Crucial Strategic Action Plan for Natural Carbon Sinks” (link: https://www.ndc.gov.tw/Content_List.aspx?n=6BA5CC3D71A1BF6F).
Q6：Indicator E-16: “Has the company disclosed the supplier management policy it formulated? Does it require suppliers to comply with the relevant requirements of environmental protection issues, and has it specified the implementation status?” and indicator S-15: “Has the Company disclosed the supplier management policy it formulated? Does it require suppliers to comply with the relevant requirements for occupational safety and health, labor human rights, information and communication safety or privacy protection issues, and has it specified the implementation status?” are both indicators related to supply chain management. What are their evaluation purposes and scoring requirements?
A6：To encourage companies to adopt corresponding supplier management practices for different issues, we separated the requirements for the social aspect/environmental protection issues in the supplier management policy and added indicator E-16. The initial indicator S-15 retained occupational safety and health, labor human rights, and other issues in the social aspects. We made indicator amendments to urge companies to formulate supplier management requirements related to information and communication safety or privacy protection issues. Two indicators require further disclosure of the description of the substantial supplier management policy and the implementation of the relevant requirements (i.e., implementation status of supplier due diligence, supplier self-evaluation, guidance, or education, and performance evaluation) for scoring.
Q7：What are the evaluation purposes and scoring requirements for the newly added indicator S-6: “Has the company disclosed its investor engagement (i.e., investor conferences, in-person visits, video conferences, telephone, or e-mail) status, as well as the material content of the questions raised by investors and the responses of the company?
A7：To encourage active communication between companies and investors and guide them to disclose the important content of the relevant questions and responses, we added indicator S-6. The score is obtained only when the following two scoring requirements are fulfilled at the same time: (1) Disclose the investor engagement methods (i.e., investor conferences, in-person visits, video conferences, telephone, or e-mail) and the number of times for the year under evaluation. (2) Disclose the important content of the questions raised by investors and the responses of the company regarding investor engagement (i.e., investor conferences, in-person visits, video conferences, telephone, or e-mail) for the year under evaluation. Please be aware that if no question is raised at the investor conferences, it shall be set out on the corporate website for scoring.
Q8：What are the evaluation purposes and the scoring requirements for the newly added indicator S-11: “Has the company invested in domestic innovative startups and disclosed the relevant investment status?”
A8：To respond to the policy target of “innovative economy” of the Economic Development Committee, the “Promotion Plan for the Six Core Strategic Industries” and the “Promotion Plan for the Five Major Industries of Trust” of the National Development Council, the “Directions of Recognition for Startups with Innovation Capability” of the Ministry of Economy, and the “Action Plan for Accelerating Investment in Taiwan” of the Asia Asset Management Center, we encourage companies to support the development of innovative startups to drive industry development and facilitate employment through innovation drivers. Therefore, we added indicator S-11. The score is obtained when fulfilling any of the following scoring requirements: (1) Disclose the number of innovative startups in which the company invested, their equity, and the investment balances at the end of the year under evaluation; or (2) Disclose the investments in the venture capital businesses or the establishment of venture capital subsidiaries, and the number of innovative startups in which they invested, their equity, and the investment balances at the end of the year under evaluation. The details of the evaluation are as follows: (1) Investments can be conducted via subsidiaries in the consolidated financial statements. (2) An innovative startup shall fulfill any of the following conditions: A. Industries set out in the “Promotion Plan for the Six Core Strategic Industries” and the “Promotion Plan for the Five Major Industries of Trust” of the National Development Council. B. The “Directions of Recognition for Startups with Innovation Capability” of the Ministry of Economy. C. Paragraph 1, Article 29 of the Taiwan Stock Exchange Corporation Rules Governing Review of Securities Listings: Comply with the industry development strategy of the government, possess crucial core technologies and innovation capacity, or innovative business models. D. Subparagraph 2, Paragraph 1, Article 4 of the Taipei Exchange Regulations Governing the Go Incubation Board for Startup and Acceleration Firms: “The company must have an innovative or creative concept and future development potential.” (3) The investment balances shall be calculated by multiplying the closing price at the end of the year under evaluation by the balance of the number of shares; if there is no closing price, disclose the carrying amount of the investment balances at the end of the year under evaluation.
Q9：What are the evaluation purposes and scoring requirements for the newly added two indicators related to employees, including indicator S-17: “Has the company provided workplace environments and measures that are friendly to marriage, childbirth, and family care, and described the implementation status and achievements?” and indicator S-23: “Has the company disclosed the employee resignation rate in the past two years by gender and age, and described the changing trends and reasons?”
A9：To respond to the “Action Plan for Addressing the Low Birth Rate 2.0 (2026 to 2029),” we urge companies to actively create workplace environments that are friendly to marriage, childbirth, and family care. The score is obtained when fulfilling the following two scoring requirements at the same time: (1) Provide workplace environments and measures that are friendly to marriage, childbirth, and family care (i.e., organizing activities to facilitate workplace relationships, having childcare facilities in the company, provide childcare or senior care measures, promote employee assistance plans, and provide marriage, childbirth, or family care measures that are more favorable than the labor laws and regulations). (2) Disclose the implementation status and quantitative data related to achievements (i.e., number of employees participating in activities and subsidies) for 2025 or 2026. In addition, to reinforce the evaluation for the labor structure risks of companies and improve the transparency of information on human resources management, we added indicator S-23, and the score is obtained when fulfilling the following two scoring requirements at the same time: (1) Disclose the employee resignation rate by gender and age for 2024 and 2025; and (2) Describe the changing trends for the resignation rate and the reasons.
Q10：What is the content of the newly added extra score requirements in indicator G-30: “Has the company established its sustainable development committee at the level of the Board of Directors, with no less than three members who possess corporate sustainability professional knowledge and capabilities, and with at least one director participating in the supervision? Have the composition, duties, and operations been disclosed?”
A10：We added that if the CSO (or a position with equivalent duties) executes sustainable development affairs for a company, and the company discloses the reporting frequency (at least once a year) of the execution status for sustainable development to the Board of Directors (or the sustainable development committee), or the dates of reporting to the Board of Directors (or the sustainable development committee) during the year (2026), the company fulfills the scoring conditions.
Q11：To reinforce the purpose and execution of treasury share repurchases and encourage the disclosure of repurchase information, we added indicator G-25: “For treasury share repurchases by the company that expired or were completed during the year under evaluation, is the repurchase purpose to transfer shares to employees with an average execution rate of 90% or above, or was the daily execution status during the repurchase period disclosed after the expiry or the completion?” What are the matters of notice for the indicator?
A11：If the company did not repurchase treasury shares during the year under evaluation, or if the repurchased treasury shares did not expire or were not completed during the year under evaluation, this indicator is not applicable. (2) If the execution rate for the repurchases of treasury shares during the year under evaluation is less than 50% (regardless of the purpose for the repurchase), no score is granted for this indicator. (3) Regarding the first scoring requirement, “For repurchases of treasury shares by the company that expired or were completed during the year under evaluation, is the repurchase purpose to transfer shares to employees with an average execution rate of 90% or above,” if the purpose for the repurchase of treasury shares is not transferring to employees, it shall not be included in the calculation of the average execution rate. The execution rate refers to the ratio of the number of shares repurchased to the number of shares expected to be repurchased (rounded to two decimal places). If there are multiple repurchases of treasury shares during the year under evaluation, calculate the score based on the simple average of the execution rates (rounded to two decimal places).