The Taiwan Fund, Inc.
Climate Impact & Sustainability Data (2020, 2022, 2023-02-28)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Sustainable Investments
- Greenwashing Prevention
- Impact Reporting
- Stakeholder Engagement
- Transparency
Climate Goals & Targets
Environmental Challenges
- Greenwashing in the sustainable investment industry
- Lack of transparency and robust data on ESG impact
- Investor skepticism towards ESG claims
Mitigation Strategies
- Increased transparency and rigorous data reporting on ESG impact
- Careful analysis of company's total impact on all stakeholders
- Openness about data used to assess a company's impact
- Proactive engagement with companies to improve data disclosure
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Underperformance of the benchmark (TAIEX) due to poor stock selection and sector allocation, particularly in the Information Technology sector.
- High concentration of poorly performing tech stocks in the portfolio.
- Increase in interest rates by the Fed driving down valuations of high-growth stocks.
- Downward revision of demand for personal computers and notebooks impacting ABF Substrate companies.
- COVID outbreak in Taiwan causing losses for insurance companies.
Mitigation Strategies
- Selection of Nomura Asset Management U.S.A. Inc. as the new investment advisor.
- Diversification of holdings into insurance companies (partially offset by COVID impact).
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023-02-28
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Weakening in demand for semiconductors due to increasing inventory and order reductions.
- Potential for downward earnings revisions in the equity market.
- Uncertainty of the global macro environment, potential recession risk and geopolitical risk.
Mitigation Strategies
- Buying on dips to accumulate positions in growth sectors and stocks with reasonable valuations.
- Focusing on companies that can benefit from market share gains, secular growth trends and strengthening competitiveness.