Among the 11 countries and regions
evaluated, the United Kingdom ranks the highest in ESG performance, followed by
Germany; Taiwan ranks at the 50th percentile, slightly ahead of
Australia, Ireland, the United States, and New Zealand. Smaller score indicates
better performance.
The "ESG
Competitiveness Analysis for Taiwan Supply Chain” surveyed the United Kingdom,
Germany, France, Sweden, Canada, Hong Kong, Taiwan, Australia, Ireland, the
United States, and New Zealand. With the largest business intelligence database
in the world, Dun & Bradstreet aims to expand the global coverage of its
ESG rankings to over a hundred countries and regions this year and offer the
global supply chain a single measurable standard.
Taiwan
businesses excel in social and governance categories with opportunities for
improvement in environmental areas
Using its long-term
accumulated industry knowledge of Taiwan, Dun & Bradstreet ranked 691
Taiwan suppliers serving the six leading manufacturers that made the Fortune
Global 500[1] list: Hon Hai Precision
Industry, Pegatron, TSMC, Quanta Computer, Compal Electronics, and Wistron. The
survey categorized the suppliers into six tiers according to their positions in
the supply chain and conducted analysis on environmental, social, and
governance factors.
l In general, 691
Taiwan suppliers performed relatively well in social and governance categories,
thanks to Taiwan government’s long-term interest in these areas. On the other
hand, there still exist challenges to be resolved in the environmental category.
Based on observations, emission reduction and management driven by the
government is necessary, as Taiwan aims to achieve net zero by 2050.
l If analyzed by
tiers, the performance of businesses in tier 1 to 3 outshined other tiers, as suppliers
and leading manufacturers in these categories share a direct relationship and
face more scrutiny. On the contrary, businesses in tiers 4 to 6 are less
correlated, hence explaining their greater opportunities for improvement in
scores.
Implementing
ESG is critical for Taiwan businesses to unlock the value of the global supply
chain
Dun &
Bradstreet also conducted an analysis of 716 Taiwanese suppliers of Fortune
Global 100 companies. These companies span across industries including energy
conversion and management, ICT, and more, with total revenue accounting for 59%[2] of Taiwan's annual GDP in
2020. They are pillars of Taiwan’s economy. Dun & Bradstreet research found
that their excellent revenue performance is also reflected in their ESG practices.
These 716 suppliers earned an average ESG score of 1.73, which is significantly
higher than Taiwan's overall average of 2.56, and better than the performance
of other countries and regions. This indicates that Taiwan companies not only excel
in R&D, but outperform their international counterparts in sustainability
as well. As ESG becomes more mainstream, it becomes critical for businesses to
unlock the value of the global supply chain.
"ESG has obviously
become the entry ticket for small and medium-sized enterprises to the global
supply chain, but the evaluations are not standardized on the market,” said
Michelle Sun, General Manager of Dun & Bradstreet Taiwan. “Through our ESG
intelligence, built from deep coverage of public and private companies in
Taiwan, coupled with the top five standards, Dun & Bradstreet hopes to reveal
data-driven insights that are comprehensive and objective, enabling Taiwan
businesses to review and put their ESG goals into practice, while strengthening
their competitiveness on the global market.”
Dun & Bradstreet provides business data and public ESG-related information of 27+ million public and private companies worldwide. Dun & Bradstreet's ESG services are created from objective data modeling and third-party processes. Its ESG rankings, structured around leading sustainability frameworks, SASB, GRI, UN SDGs, TCFD, UN PRI, provide a single benchmark to enable companies balance short-term profitability and long-term competitiveness.
[1] Fortune Global 500: https://fortune.com/global500/
[2] Calculated with several companies’ estimated revenue