Taiwan semiconductor industry excels again in Dow Jones Sustainability Index
With the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs) adopted by all United Nations Member States in 2015, sustainable development has become a global focus. Companies’ ESG (Environmental, Social, and Governance) implementation and disclosure are now watched closely by regulators, investors, and the public. ESG factors are now frequently considered in the investment decision-making process as a company’s ESG actions and results will direct impact its sustainability and long-term profitability.
Among the many corporate sustainability investment ratings, the Dow Jones Sustainability Index (DJSI) is well-recognized for its credibility and impact. Launched in 1999 by Standard & Poor’s, Dow Jones Indices, and Switzerland-based RobecoSAM, the DJSI are a family of benchmarks for investors that track the sustainable practices of the world’s largest companies. Each year over 3,500 of the world’s largest companies are invited to participate in the SAM Corporate Sustainability Assessment and be evaluated in twenty-four criteria in three dimensions—Governance & Economic, Environmental, and Social. Only companies scoring in the top 10% are selected.
Announced in November 2020, 26 Taiwanese companies from 10 industries were named to the DJSI in 2020, and the semiconductor industry received top scores. This year, 58 of the largest semiconductor and semiconductor equipment companies around the world participated in the assessment, and only 7 were selected. Four of them are from Taiwan—ASE Technology Holding, TSMC, UMC, and WIN Semiconductors. Apart from Win Semiconductors, which was listed for the first time, the other three have been top performers over the years. ASE was named industry leader for fifth year in a row; TSMC was selected for 20 consecutive years; and UMC was selected for the 13th consecutive year. It is strong evidence that Taiwan’s semiconductor industry is best-in-class in corporate social responsibility and sustainable development.
With Taiwan’s increasing importance in the global semiconductor industry, we should lead the way in corporate sustainability. In the era of 5G, AI, and IoT, Taiwan’s semiconductor industry should lead with ESG strategy, implementation, governance, and disclosure with our comprehensive industry clusters and advanced technologies. By demonstrating leadership in climate change, green manufacturing, circular economy, corporate governance, and social good, Taiwanese companies become world-class in influence and trust.