TAIFEX to launch the first ESG futures in ASIA

Taiwan Futures Exchange (TAIFEX) teamed up with FTSE Russell and Taiwan Index Plus (TIP) Corporation to launch the first futures contract linked to FTSE4Good TIP Taiwan ESG (“F4G TIP TW ESG”) Index. The new ESG index launches on 8 June 2020 and will assist to the ever-growing market need of ESG (environmental, social and governance) investment in Taiwan.

Launched in December 2017, the F4G TIP TW ESG Index measures the performance of over 70 companies listed on the Taiwan Stock Exchange that meet global ESG standards used by the FTSE4Good Index Series.

The Index was named a domestic investment benchmark of the Taiwan Bureau of Labor Funds (BLF) with a total investment amount of USD 1.4 billion in 2018. After the addition of ESG ETFs, there has been a growing demand for ESG derivatives to hedge sustainability risks.

Bing-Jing Huang, President of TAIFEX, said:

We are pleased to extend our collaboration with FTSE Russell and Taiwan Index Plus Corporation by launching the FTSE4Good TIP Taiwan ESG Index Futures. The new product addresses the growing demands for ESG investment across the globe and has gained traction as the first ESG futures in Asia. We believe this product provides an effective tool for investors to trade and hedge their exposure to ESG portfolios.

FTSE4Good TIP Taiwan ESG

Jessie Pak, Managing Director, Head of Information Services Asia Pacific, London Stock Exchange Group, said:

Jessie Pak, LSEG

Jessie Pak

We are delighted that TAIFEX has selected the FTSE4Good TIP Taiwan ESG Index to track for its latest listed futures. FTSE Russell is committed to supporting growing client and investor demand in Taiwan, and across Asia, for sustainable investment 2 solutions developed to globally recognized ESG standards. We will continue to engage with our exchange partners globally to facilitate the development of the index-based listed futures and options markets, providing investors with further choice, diversification and risk management opportunities for their portfolios.

Billy Wang, President and CEO of TIP, said:

We collaborated with FTSE Russell in launching the FTSE4Good TIP Taiwan ESG Index in 2017, which has become the most representative benchmark of Socially Responsible Investment (SRI) in Taiwan. With growing demand of ESG investing recently, the index has been adopted in diversified applications from government pension fund, ETF, mutual funds, and now to futures product by TAIFEX. This has effectively constructed an SRI ecosystem in our market by providing comprehensive vehicles for domestic as well as foreign market participants to conduct investing, trading, risk management and hedging activities in Taiwan.

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