ESG

This article examines how corporate ESG performance affects bank lending decisions in Taiwan. Using TEJ’s TESG Ratings, the study finds that companies with stronger ESG performance generally receive more favorable lending conditions, including lower loan spreads, larger loan amounts, longer maturities, and a lower likelihood of collateral requirements. The findings also highlight the importance of balancing ESG initiatives with financial performance, as excessively high or low ESG performance may lead to less favorable lending terms.

On July 4, 2025, TEJ had hosted the 2025 ESG Seminar in Taipei, themed “Turning ESG Principles into Action.” The event had focused on IFRS S2 and TNFD, showing how Taiwan’s financial sector had addressed disclosure challenges with data-driven ESG solutions for compliance, investment, and risk management.

Based on its robust connection to academic research and databases, TEJ actively engages in academic conferences on finance and accounting, fostering collaboration with scholars and sharing practical insights.

With National Taiwan University in turn this year, The Eleventh International Conference of the Journal of International Accounting Research (JIAR International Conference) is held at Regent Taipei Hotel on June 20 and 21. The conference focused on critical ESG issues, such as "How carbon pricing will affect a company’s financial conditions” and “The role that the board plays in ESG-related issues”.

Taiwan Economy Journal (TEJ) and National Chengchi University College of Social Sciences (NCCU LiSSi) have recently announced a collaboration. Together we integrate TEJ data with NCCU’s expertise in remote sensing and disaster information to create a brand new solution — Physical Disaster Risk Loss Valuation. This solution aims to assist Taiwanese financial institutions in identifying physical risks associated with operational locations and investment portfolios. It provides risk predictions and loss assessments for both base and future periods, enhancing risk management efficiency and asset protection.

As America continues to maintain a high-interest rate, the borrowing cost for companies still remains at a peak. However, compared to other bonds, bonds related to ESG enjoy a lower yield, but seldom do we see small or startup companies issue green bonds. This is because issuing green bonds requires the funds only to be used on certain ESG projects, which is normally not the primary goal for small and startup companies. Hence, a new type of bond, Sustainability-Linked Bonds, is created. In this article, we will briefly introduce the concept and principle of Sustainability-Linked Bonds.

Greenwashing refers to companies trying to gain public trust by claiming to have environmental, social, and corporate governance (ESG) contributions or making carbon reduction declarations, but taking little action. To prevent such behavior and to strengthen corporate focus on sustainable ESG disclosure, the International Financial Reporting Standards Foundation (IFRS Foundation) has developed a globally applicable set of sustainability disclosure standards with an accounting foundation—the IFRS Sustainability Disclosure Standards. In this article, we will start by introducing the IFRS Foundation, and then delve into the main content of the IFRS S1 as well as how Taiwan aligns with international sustainability disclosure standards.

The previous article mentioned the basic types of ESG bonds, and we believe you have a basic understanding of these types of bonds. Next, we will introduce specific types of ESG bonds, and briefly introduce you to a few representative countries that are currently promoting sustainable finance policies and ESG bond market development.

ESG bonds are issued in the same way as regular bonds, but the difference lies in the use of the funds, which is the most important reason to differentiate ESG bonds from regular bonds.

Chung Fu has recently been embroiled in multiple governance issues. What secrets lie behind these incidents?

Chung Fu's operations in peril: critical financial reports repeatedly delayed since last year, what lays behind the reporting delays?

For advocates of negative screening, the most crucial question is how to screen for good companies. Can the selected companies not only align with personal values but also meet returns?