To address global sustainable financial regulatory trends, strengthen the foundation of trust in Taiwan's sustainable investment market, and enhance information transparency, the Taiwan Depository & Clearing Corporation (TDCC), in accordance with the Financial Supervisory Commission's (FSC) policy blueprint, has drafted the "Code of Conduct for ESG Rating and Data Product Providers." The draft is open for public consultation from June 1 to June 30 of this year (2026). It aims to guide market intermediaries in implementing international standards, gather diverse market opinions, build consensus, and actively promote the seamless integration of Taiwan's sustainable finance ecosystem with international capital markets.
Expanding Scope to Include Data Product Providers Under a Principles-Based Framework Covering Six Core Areas
As the scale of global ESG investment continues to expand, investors are increasingly reliant on ESG ratings and data. To ensure the quality and objectivity of this data, the International Organization of Securities Commissions (IOSCO) and the International Capital Market Association (ICMA) have recently issued related regulatory frameworks. In alignment with competent authority policies and international standards, TDCC is expanding the scope of the "Code of Conduct for ESG Ratings Providers" released in 2024. Drawing deeply on ICMA's experience in promoting voluntary codes of conduct globally, this update includes "ESG data product providers" within the regulatory framework for the first time.
The new code adopts a "principles-based" framework covering six core areas: good governance, securing quality, conflict of interest, transparency, confidentiality, and engagement. It also establishes a "self-assessment document" mechanism, leveraging market forces to collectively monitor compliance.
Voluntary Signing and Transparent Disclosure to Build International Investor Trust
TDCC President Daniel Chen stated that the drafting of this code of conduct is not only a major upgrade for Taiwan's sustainable information infrastructure but also a core milestone in the integration of Taiwan's capital market into international sustainable supply chains. By encouraging rating and data providers to voluntarily sign the code and publicly disclose their self-assessments, governance and transparency in information production can be enhanced at the source. This will subsequently reduce communication costs between rated listed companies and rating agencies.
Moving forward, the specific implementation measures of the signatory institutions will be publicly disclosed on TDCC's "ESG IR Platform." This initiative is expected to significantly boost the trust of foreign institutional investors and domestic professional investors in Taiwan's ESG information, further vitalizing the domestic sustainable finance ecosystem.
Gathering Diverse Opinions to Shape New Market Rules and Build a Thriving Ecosystem
The relevant documents for this public consultation have been concurrently published on TDCC's "ESG IR Platform" (https://irplatform.tdcc.com.tw/ir/zh/) for public review and feedback. After the public consultation period concludes at the end of June, TDCC will compile all suggestions, finalize the revisions, and submit the drafted code to the competent authority. Through the collaborative efforts of market participants, TDCC hopes to continuously deepen Taiwan's sustainable finance ecosystem and elevate the overall international competitiveness of its capital market.