TWSE ESG Evaluation Launches in 2026: 75 Indicators and Strategies for Listed Companies

Updated on 6 October 2026. Added historical indicator transitions, links to past results and the publication timeline for the first ESG Evaluation results.

Responding to global sustainability trends and investment market demand, the Taiwan Stock Exchange (TWSE) announced its ESG Evaluation in October 2025, replacing the Corporate Governance Evaluation from 2026 (ROC year 115).
The new system retains the existing evaluation framework and processes while expanding coverage to three dimensions—environment (E), social (S) and governance (G)—with 75 indicators comprehensively assessing the sustainability performance of TWSE/TPEx-listed companies.

The evaluation aims to embed sustainability values in the market and help investors better understand corporate ESG performance as a reference for sustainable investment decisions. It also seeks to encourage sustainability governance, strengthen disclosure transparency and gradually align with international sustainability assessment standards such as SASB, TCFD and ISSB.

The following sections examine this major reform through its overall framework and the environmental, social and governance dimensions, highlighting the issues companies should prioritise.

Source: TWSE Corporate Governance Center

Evaluation Framework

The biggest change is a comprehensive restructuring of the evaluation framework. The TWSE has consolidated the former four dimensions—protecting shareholder rights and treating shareholders equitably, strengthening board structure and operations, increasing information transparency, and promoting sustainable development—into environment (E), social (S) and governance (G), bringing the evaluation closer to mainstream international ESG frameworks.

The TWSE has also adjusted the dimension weights: environment accounts for 21%, social for 31% and governance for 48%. There are 12 new indicators, 17 revisions, 7 deletions and 5 changes in question type. Scores and content show that governance remains central, alongside environmental management and social responsibility. As the institutional foundation of corporate sustainability, governance remains crucial to scoring. The increased weight of environmental and social topics also reflects a shift towards assessing integrated ESG performance.

Source: Taiwan Stock Exchange Corporate Governance Center

Environment (E): Resource Efficiency, Biodiversity and Natural Carbon Sinks

Environmental changes separate the former water and waste indicators and introduce items on waste management, the circular economy, energy, biodiversity and natural carbon sinks. Overall, the evaluation places greater emphasis on resource efficiency and natural capital management, reflecting international trends in biodiversity conservation and natural carbon sinks, in line with developments in the latest GRI framework and the Taskforce on Nature-related Financial Disclosures (TNFD).

Detailed updates are as follows (source: Taiwan Stock Exchange Corporate Governance Center):

• Separate water and waste indicators: For example, E-4 is revised to “Establish water use reduction management policies” and E-5 to “Disclose water consumption for the past two years”.
• New waste management and circular economy indicators: E-6 requires “Establish and disclose circular economy or waste management policies and related actions”; E-7 requires “Disclose total waste weight for the past two years”.
• New energy disclosure indicator: E-9 requires “Disclose energy use for the past two years”.
• New biodiversity and natural carbon sink indicators: E-14 requires “Establish and disclose biodiversity policies or commitments and explain implementation”; E-15 requires “Establish and disclose strategies and measures to promote natural carbon sinks and explain implementation”.
• Stronger supplier environmental management disclosure: New E-16 requires “Disclose environmental requirements for suppliers under supplier management policies and their implementation”.

Social (S): Stronger Human Rights Protection

Social updates cover human rights, investor engagement mechanisms, startup investment and family-friendly measures, with new advanced bonus conditions, including stronger supplier management indicators. Overall, the evaluation places greater emphasis on deeper human rights protection and extending labour rights throughout the supply chain, encouraging companies to protect employee rights and implement human rights management across upstream and downstream partners.

Detailed updates are as follows (source: Taiwan Stock Exchange Corporate Governance Center):

• Stronger human rights protection and due diligence: Revised S-1 requires “Establish and disclose human rights protection policies and responsible units”; new S-2 requires “Establish and disclose human rights due diligence processes and implementation”.
• New investor engagement disclosure indicator: S-6 requires “Disclose investor engagement and key investor questions and company responses”.
• Support for innovative startups: New S-11 requires “Disclose investment in domestic innovative startups”.
• Marriage, parenting and family care support: New S-17 requires “Disclose implementation and outcomes of workplace measures supporting marriage, parenting or family care”.
• Greater workforce data transparency: New S-23 requires “Disclose employee turnover rates for the past two years by gender and age, explaining trends and reasons”.

Advanced bonus conditions: For example, S-16 awards points for employer contributions above statutory requirements under the new labour pension system. Separate social supplier management indicator: Revised S-15 requires “Disclose supplier requirements and implementation on occupational health and safety, labour and human rights, information and communications security, or privacy protection”.

Governance (G): Building on Existing Rules and Sustainability Governance Functions

Governance changes are relatively limited, primarily following existing regulations and the Corporate Governance Evaluation framework, including female board representation, board operations and information transparency. The direction preserves the previous evaluation's emphasis on sound governance structures and continuous improvement.

Detailed updates are as follows (source: Taiwan Stock Exchange Corporate Governance Center):

• Board structure revisions: G-15 now requires “All independent directors serve no more than three consecutive terms”. Having at least one director of a different gender is a bonus item (G-11), rather than a basic scoring requirement.
• Stronger share buyback disclosure: New G-25 requires “Shares repurchased for transfer to employees achieve an average execution rate of at least 90%, or actual daily execution during the buyback period is disclosed after expiry or completion”.
• Stronger sustainability governance: New advanced bonus condition G-30 requires “A chief sustainability officer, or equivalent, responsible for sustainable development who regularly reports implementation to the board”.
• Improved sustainability disclosure quality: New advanced bonus condition G-33 requires “Third-party assurance or verification of industry metric disclosures prepared with reference to SASB Standards”.
• Indicator wording and question type adjustments: Revisions include G-1 (disclosure of remuneration policies and links to performance), G-5 (shareholders' meeting livestreams or audio/video disclosures) and G-13 (disclosure of family or internal corporate relationships between directors), alongside deletion or consolidation of indicators with limited ability to distinguish practice.

Outlook: Evaluation Development and Recommendations for Companies

The transition from Corporate Governance Evaluation to ESG Evaluation marks a major milestone in Taiwan's sustainability governance and signals faster alignment with international standards. Governance remains central, while environmental and social responsibility have become priority areas in the official evaluation framework. This reflects increasingly comprehensive and institutionalised policy expectations for corporate sustainability action. Gaps between Taiwanese and international sustainability disclosure and management practices are expected to narrow.

Integrating environmental and social topics into the existing governance evaluation also signals a move towards deeper integration and long-term tracking rather than separate assessments of fragmented topics. The framework could become an important template for government and industry when developing indicators for other sustainability issues.

Recommended Actions:

1. Assess current performance and gaps: Review existing indicator performance and gaps in management systems against the latest ESG Evaluation framework, particularly new environmental and social indicators.
   
2. Prioritise governance improvements: In the short term, strengthen internal governance—such as board functions, disclosure quality and risk management—as the foundation for future environmental and social strategies.
   
3. Plan for medium- and long-term integration: Gradually introduce cross-department ESG management and connect sustainability goals with corporate strategy, laying the groundwork for more integrated evaluations.

Companies should also monitor international sustainability framework updates, including ISSB, GRI and TNFD, and prepare disclosure and management mechanisms early. Incorporating global trends into strategy can reduce future adjustment costs and demonstrate foresight and competitiveness in sustainability evaluations and to international investors.

Transitioning from the 2025 Corporate Governance Evaluation to ESG Evaluation

The 2025 (ROC year 114, 12th) evaluation remained a Corporate Governance Evaluation, with 70 indicators across four dimensions: 9 new indicators, 11 revisions, 14 deletions and 4 question type changes. The weights were shareholder rights 16%, board structure and operations 25%, information transparency 10%, and sustainable development 49%. These weights do not apply to the 2026 (ROC year 115) ESG Evaluation.

Environmental changes in ROC year 114 covered Scope 3 emissions, internal carbon pricing, energy management plans and their verification, while strengthening disclosures on Scope 1 and 2 emissions and verification, 2030 reduction targets, environmental management systems and green investment. Social changes covered employee training, satisfaction surveys, personal data protection and consumer rights. Governance changes included measures to enhance enterprise value, board-level sustainability committees, and changing SASB industry disclosures from bonus to basic scoring requirements.

These changes provide historical context for the ROC year 114 indicators. ROC year 115 uses the three E, S and G dimensions and 75 indicators described above. For the current evaluation, refer to the TWSE ESG Evaluation portal. Historical indicator details remain available in 2025 Corporate Governance Evaluation Indicators Released: Sustainable Development Weight Rises to 49%; for reviews of results, see Past Corporate Governance Evaluation Results and Understanding the 12th Corporate Governance Evaluation Results.

Official source: Explanation of the 12th Evaluation Indicators.

First ESG Evaluation Results: Publication Timeline and Access

The first ESG Evaluation covers 2026 (ROC year 115), with results expected from the TWSE by the end of April 2027. No official first-round results are available as of this article's update. Once published, visit the TWSE ESG Evaluation portal to view them. The published 12th Corporate Governance Evaluation results relate to ROC year 114 and must not be treated as the first ESG Evaluation rankings. Timeline source: TWSE 12th Awards Ceremony and New Evaluation Framework Briefing.

TWSE Corporate Governance Evaluation ESG Evaluation