Solactive launches Taiwan Sustainability Index

Investors now have a new option to weigh up the ESG credentials of companies in Taiwan

Solactive has launched a new index that tracks the performance of the best performing companies in Taiwan, scored on sustainability credentials.

Index components are screened based on corporate social responsibility (CSR) performance, financial performance and market quality.

Evaluation of more than 300 questions covering social, economic, environmental, and disclosure (Seed) dimensions assigns each company a Total Sustainability Score.

This score identifies the stock’s CSR performance and assesses their eligibility for inclusion in the index.

Timo Pfeiffer, head of research at Solactive, said: “For contemporary investors, screenings for ESG aspects like corporate social responsibility become more and more essential when considering their investments strategies.

“Therefore, it is hardly surprising that our first client from the academic environment, which we are very proud of working with, chose this factor when developing their first index strategy.”

The index is the result of cooperation between Solactive and a higher education institution, the National Taipei University College of Business, which approached Solactive with a proprietary index concept.

The President of National Taipei University, Professor Lee Chen-Jai, said: “The National Taipei University is honored to collaborate with the Taiwan Institute for Sustainable Energy for the development of the Taiwan Sustainability Index (TWNSI). It is also an honor to have Solactive work with us to fulfill the index calculation and publishing via Bloomberg and Reuters.

“The index highlights the insistence of our College of Business on corporate sustainability teaching and research, which is believed to exert innovative and positive social impact on our financial market.”