2022 Taiwan Proxy Season Review

Below are key takeaways from ISS’ recently released 2022 Taiwan Proxy Season Review. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.

• Climate change: All listed companies are required to disclose a greenhouse gas inventory including their Scope 1 and Scope 2 emissions by 2027 and to complete a verification process conducted by a third party by 2029.
• Gender diversity: To comply with Taiwan Stock Exchange’s guidelines for corporate governance best practices and sustainability development, listed companies have started to disclose board gender and diversity related information in their annual reports released in2022.
• Related-party transactions: Recent regulatory amendments require shareholder approval for related-party transactions with transaction amounts exceeding 10 percent of the company’s total asset value. A substantial number of companies followed suit to propose similar amendments to their company bylaws this proxy season, and  more related-party transaction proposals are anticipated to be submitted for approval at next year’s AGMs.
• ESG reporting and disclosure: New regulatory amendments include more companies in the annual ESG reporting requirement. All listed companies are now required to upload either their ESG-related information or a description of their ESG disclosure practice on the newly established ESG disclosure and inquiry platform on Market Observation Post System (MOPS).

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