Taiwan-listed companies outshine Hong Kong, mainland China peers on ESG disclosures, MioTech data shows

Top performing Taiwan companies are more diligent in disclosing their ESG metrics and initiatives than their regional counterparts, the data provider says

Higher ESG ratings can help companies achieve higher stock market valuations and reduce capital market financing costs, studies have shown

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Investors have higher expectations these days when it comes to a company’s environmental and social initiatives. Photo: Shutterstock

Published: 1:37pm, 7 Jul 2021Updated: 10:59pm, 7 Jul 2021

When it comes to disclosing what they are doing to help the environment and society at large, Taiwan-listed companies are outshining their peers in Hong Kong and mainland China, according to data provider MioTech.

They are better at reporting their environmental, social and governance (ESG) efforts than their regional counterparts, though Hong Kong and mainland-listed firms have been improving on the back of tighter regulatory requirements and the rising expectations of investors, said the Hong Kong-based sustainability data and technology firm.

“Although our data suggests that Taiwan companies have higher disclosure levels as compared to their Hong Kong and mainland peers, there is a clear upwards trend for the entire Greater China region,” the company said in written comments to the Post.

“Top performing Taiwan companies are diligent in disclosing their ESG metrics and initiatives against international standards like GRI [Global Reporting Initiative], which are more in-depth as compared to Hong Kong Exchanges and Clearing’s requirements.”

Companies that make more comprehensive disclosures can achieve better scores than those that do not, under MioTech’s assessment methodology.