The White Paper on Female Governance is a collaborative effort between the Taiwan Women in Boards Association (WOB.tw) and Ernst & Young (EY), focusing on annual survey concerning listed companies with female leaders serving as chairpersons or general managers (hereinafter referred to as “female-governed listed companies,” their chairperson or general managers, hereinafter referred to as “female leaders”). The 2023 White Paper on Female Governance explores how companies address the waning of globalization and the increasingly volatile geopolitical landscape in the business environment, focusing on strategies for addressing the current economic outlook, the adoption of ecosystem approaches, and the outcomes resulting from climate change initiatives. A survey on female leaders of listed companies in Taiwan was conducted from May to June 2023, collecting a total of 76 valid responses, showing a growth of 23% comparing to 2022; in terms of the total market value, companies returning valid responses this time amounted to approximately NT$2.38 trillion, accounting for 66% of the total market value of femalegoverned listed companies (approximately NT$3.61 trillion), which was very representative. This white paper survey covers five chapters: Overview of Female Leaders of Listed Companies in Taiwan, Research and Analysis of Company Performance, Corporate Business Plans, Greenhouse Gas Reduction and Climate Change Initiatives, and Differences in Corporate Management and Business Plans between Taiwanese and International Companies. It establishes objective data analysis on female-governed listed companies.
1. Overview of Female Leaders of Listed Companies in Taiwan In 2022, there were a total of 981 listed companies in Taiwan, among which 138 (approximately 14%) were female-governed. Within these 138 companies, 20% had both female chairpersons and general managers, and approximately 71% had the same female individual serving as both chairperson and general manager. In contrast, there were 953 male-governed listed companies, among which approximately 88% had both male chairpersons and male general managers, and approximately 28% had the same male individual serving as both chairperson and general manager. On the whole, as of the end of 2022, the total number of listed companies increased by approximately 1% compared to 2021. However, in 2022, there was a 7% decrease in the number of companies with women serving as chairpersons, and a 2% increase in the number of companies with women serving as general managers. These changes can be attributed to the absence of female chairpersons in newly listed companies in 2022 and the transition from female to male chairpersons in six existing companies.
2. Research and Analysis of Company Performance In 2022, geopolitical turbulence resulted in a highly uncertain global business environment. However, this survey shows that among female-governed listed companies, 55% experienced revenue growth, and 50% witnessed EPS growth. In comparison, among all listed companies, 57% experienced revenue growth, while 49% witnessed EPS growth. This indicates that femalegoverned listed companies remain resilient even amidst the crisis. In the face of heightened economic uncertainty in 2023, female leaders in Taiwan perceive “scarcity and cost of talent with the right skills to accelerate growth,” “a further increase in geopolitical tensions,” and “climate change impacts and pressures to build sustainability” as the three greatest risk factors to the growth of their business. Even amidst the unclear monetary policy direction of the U.S. Federal Reserve and the economic rifts caused by trade protectionism, female leaders do not perceive “uncertain monetary policy direction and an increase in the cost of capital,” “a regionalization/fragmentation of the global economy,” and “more restrictive regulatory environments in key markets” as the primary risk drivers affecting their business growth. “Reconfiguring supply chains” and “relocating operational assets” are the proactive strategies adopted by female leaders in Taiwan to address geopolitical challenges, rather than exiting or stopping planned investments. Additionally, female leaders perceive increasing investments in “innovation and R&D” and “talent” is the cornerstone of enhancing a company’s competitiveness and combating economic downturns. However, they perceive “rising talent costs” and “talent scarcity in emerging technologies” as the top two primary challenges in talent acquisition. Therefore, they support initiatives such as “employee care,” “skill enhancement for employees,” and “flexible work arrangements” to attract and retain talent.
3. Corporate Business Plans The EY 2023 CEO Outlook Pulse Survey indicates that 2023 is considered an opportune time for mergers and acquisitions, with CEOs believing that M&A can accelerate transformation and help lay the foundation for future growth in their organizations. In contrast, female leaders in Taiwan perceive “joint ventures or strategic alliances” as the primary strategic transaction initiative to be pursued over the next 12 months. The top two drivers behind these strategic transaction initiatives are “integration within or across companies to enhance efficiency and profitability” and “creating new growth pathways.” This shows that female leaders aim to create synergies through collaboration and mutually beneficial practices, enhancing market competitiveness for both companies. In response to the changing global economic and trade landscape, female leaders in Taiwan consistently adapt their operational strategies. Consequently, their primary motivations for envisaging changes in their business operating models in the future stem from “company’s own planning” and “responding to customer demands."Ecosystems play a critical role in accelerating transformation and maximizing value. According to EY’s survey, ecosystemgenerated revenue is projected to account for 10% of a company’s total revenue in the next five years. This survey delves into the insights of female leaders in Taiwan regarding industrial ecosystems, with over half (61%) of respondents stating that their companies have entered industrial ecosystems. The top three reasons for their entry are “extending into new geographies,” “acquiring new customers/clients,” and “increasing efficiency/reducing costs.” This indicates that female leaders in Taiwan recognize ecosystems as a means to accelerate value creation, growth, and innovation within their companies.
4. Greenhouse Gas Reduction and Climate Change Initiatives According to the findings of our surveys conducted in 2021 and 2022, there had been a notable increase in ESG awareness among female leaders in Taiwan. This year, the surveyed female leaders primarily adopt internal measures to support environmentally sustainable development, of which 46% have publicly disclosed their greenhouse gas reduction goals. Although companies worldwide are responding to sustainability initiatives, the survey conducted by EY among over 500 leading sustainable companies indicates that the percentage of companies with publicly disclosed reduction goals do not exceed 50%. Among those with generic reduction target, most global companies have aimed for reductions of 45-54%, followed by 35-44%, while female leaders in Taiwan have predominantly set reduction goals in the range of 25-34%. Among female leaders in Taiwan who have made carbon neutrality commitments, half of them set reduction goals in the range of 45-54%, while 30% of global companies have aimed for reductions in the range of 35-44%. Additionally, according to both domestic and global surveys on the reduction achievements of companies with publicly disclosed greenhouse gas reduction goals, the majority have achieved reductions of 25% or less. Among companies with publicly disclosed “generic reduction target,” companies led by female leaders in Taiwan, like leading sustainable companies abroad, have also achieved significant results, with 4% of them achieving carbon emission reduction of more than 55%. Furthermore, this survey shows that when evaluating a climate change initiative, female leaders in Taiwan prioritize “planetary value,” “financial value,” and “customer value” as the top three that can bring value to their companies. This contrasts with the EY 2022 Sustainable Value Study, which shows that companies predominantly prioritize “financial value” as the top consideration, with its proportion being nearly twice that of “planetary value.” As this survey delves deeper into the disparities between the outcomes of climate change initiatives and the evaluations made by female leaders in Taiwan, over half of the respondents’ answer are “too early to tell” as to whether the outcomes of their climate change initiatives align with the expected value. This differs significantly from the results in the global survey, particularly in terms of “financial value.” In fact, a staggering 80% of female leaders in Taiwan indicate that it’s “too early to tell,” while over 65% of companies in the global survey indicate that their returns are “higher than expected.”
5. Differences in Corporate Management and Business Plans between Taiwanese and International Companies The 2023 White Paper on Female Governance utilizes portions of the EY 2023 CEO Outlook Pulse Survey and the article The CIO Imperative: How does technology underpin ecosystem transformation? To compare differences between female leaders in Taiwan and international business leaders.
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