On December 5, 2023, the Taiwan Futures Exchange (TAIFEX) participates in the 'Ring the Bell for Climate' Campaign organized by the World Federation of Exchanges (WFE). The event runs alongside with the 28th session of the Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC), marking the Exchange’s commitment to global climate risk mitigation and the transition to a low-carbon economy.
The initiative caps off a pivotal year in Taiwan’s climate resilience and carbon emission reduction efforts. In February 2023, Taiwan enacted the Climate Change Response Act, codifying the national goal of achieving net-zero carbon emissions by 2050. Within the trading sector, the Taiwan Carbon Solution Exchange debuted in Kaohsiung in August this year to foster cross-border carbon credit trading and establish an effective local carbon pricing mechanism.
TAIFEX, one of the leading futures exchanges in Asia, consistently expands efforts to manage climate change risk and promote sustainable finance. In 2022, the Exchange signed up as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD), integrating the TCFD framework into its climate-related financial disclosure. Simultaneously, TAIFEX introduced greenhouse gas consulting services to conduct greenhouse gas inventory in accordance with ISO 14064-1. The Exchange also works closely with futures market participants to prepare and publish ESG report, jointly promoting sustainable development transition strategies.
On the ESG front, TAIFEX actively develops new products catering to investors’ needs for hedging against climate risks and capturing green opportunities. Following the launch of Asia’s first ESG index futures, FTSE4Good TIP Taiwan ESG Index Futures, in June 2020, TAIFEX expands its ESG product suite and services this year by listing two ESG ETF futures, as well as introducing an integrated ESG information platform that provides sustainability-related market data. These offerings give investors access to companies leading in ESG performance and low-carbon transition, supporting sustainable finance growth in Taiwan.
As a WFE member, TAIFEX dedicates to integrating ESG factors into the futures market, enhancing market resilience and sustainability. Looking ahead, the Exchange will continue to actively fulfil its social responsibilities, reduce its carbon footprint, and promote energy conservation, while supporting Taiwan’s economic, financial and sustainable development. Through WFE’s ‘Ring the Bell for Climate’ Campaign, TAIFEX aims to demonstrate its commitment and leadership in addressing one of the most pressing challenges of our time.
