The White Paper on Female Governance is a collaborative effort between Taiwan Women in Boards Association (WOB.tw) and Ernst & Young (EY), focusing on publicly listed companies with female chairpersons or general managers (hereafter referred to as “female-governed companies,” and the chairpersons or general managers as “female leaders”).
The 2024 White Paper on Female Governance centers on themes such as female perspectives and actions in the global wave of artificial intelligence, strategic responses to geopolitical instability, multi-skilled talent strategies, and corporate sustainability issues. In May 2024, a survey was conducted among female leaders of Taiwan's listed companies, yielding 103 valid responses—a 36% increase from the number collected in 2023. The total market value of the companies that provided valid responses is approximately NT$3.79 trillion, representing 73% of the total market value of female-governed companies (approximately NT$5.19 trillion), making this a highly representative sample.
This year’s white paper survey is structured into three main chapters: “Overview of Female Leaders of Listed Companies in Taiwan”, “Corporate Management Survey and Analysis”and “Sustainability and ESG” .Thesethree chapters provide an analysis of the differences in corporate governance between Taiwanese and international companies, and establish objective data analysis for female-governed companies.
1. Overview of Female Leaders of Listed Companies in Taiwan
As of 2023, there were a total of 1,007 listed companies in Taiwan, of which 168 companies (approximately 17%) were female-governed. Among these 168 companies, 17% had both a female chairperson and general manager, and among which approximately 61% had the same female individual serving as both chairperson and general manager. Male-governed companies numbered 979, with approximately 86% of these having both a male chairperson and general manager, and about 22% of these positions were held by the same man.
Overall, by the end of 2023, the total number of listed companies increased by about 3% compared to 2022, while the number of companies with a female chairperson grew by about 16%, and those with a female general manager grew by about 18%. This growth outpaced the overall increase in listed companies. The primary driver of this change was the transition of leadership roles from men to women, with more companies seeing women take over as chairpersons and general managers in 2023 compared to the opposite. Additionally, among newly listed companies, 5 had female general managers. In 2023, the "oil, gas and electricity" and "glass and ceramics" industries had no female leaders. However, the “electronic products distribution" industry, which had no female leaders in 2022, appointed its first female general manager in 2023.
For the first time, this year’s white paper includes an analysis of female board members. Under global efforts to promote gender diversity and equality, as well as regulatory requirements, the proportion of female board members in Taiwanese listed companies has steadily increased. At the end of 2021, the proportion of female board members was 13.9%, and grew to 15.6% by the end of 2023. The number of companies without female board members has gradually decreased, with 231 companies (23.2% of listed companies) having no female board members by the end of 2023. The number of companies with two or more female board members was 365, accounting for 36.6% of listed companies. Companies where female board members made up at least one-third of the board totaled 125, representing 12.5% of listed companies. According to MSCI's 2023 Women on Boards and Beyond report, the proportion of women holding board seats in the Asia-Pacific region was 18.2% in 2023. The proportion of female board members in Taiwanese listed companies, at 15.6%, is still slightly below the Asia-Pacific average.
2. Corporate Management Survey and Analysis
In 2023, listed companies faced challenges due to global inflation, interest rate hikes, and geopolitical tensions. These factors contributed to increasing uncertainty in economic recovery and led to adjustments in industry inventories, resulting in a decline in overall revenue by about 9% and a decrease in profits by about 26%. The proportion of companies experiencing growth was lower compared to 2022. However, the proportion of female-governed listed companies that saw revenue growth was 43%, compared to 36% for all listed companies. In terms of EPS performance, the figures were 46% for female-governed companies and 41% for all listed companies. This indicates that female-governed listed companies have effectively seized the opportunities presented by disruptive technologies and have continued to resist external crises, maintaining steady growth despite the ongoing geopolitical turbulence and the impact of the disruptive technology wave.
With the AI boom sweeping the globe, female leaders in Taiwan have also recognized the significance of this disruptive technology and have begun taking relevant actions. The main completed and ongoing initiatives are heavily focused on "AI applications" and measures to "enhance corporate advantages." In terms of establishing AI environments and capabilities, nearly 50% of female leaders have completed or are in the process of hiring new talent with relevant AI skill sets. Moreover, although 81%-85% of female leaders believe in the importance of establishing AI pilots and partnerships with multiple companies, or in establishing an AI task force and investing in capabilities to augment third-party AI with our proprietary data, only around 30% have actually completed or are in the process of implementing these initiatives. This suggests that companies may need to first establish AI-related capabilities and infrastructure or have clear strategic plans before investing in partnerships and collaborations. As for risk management, although over 80% of female leaders in Taiwan recognize the need to take relevant actions, less than 3% have completed these actions. Only 39% are currently assessing how to effectively govern the risks unique to AI, and just 21% are working on establishing tracking of AI regulations. This may be due to Taiwan still being in the process of drafting AI fundamental act. However, this study echoes the findings of the consulting firm Tortoise's "2023 Global AI Index," where Taiwan performed exceptionally well in three of the seven key evaluation indicators: "Investment," "Innovation," and "Implementation."
Generative AI (hereafter referred to as Gen AI) was undoubtedly one of the most striking disruptive technologies in 2023. Most female leaders in Taiwan agree that the current advantages of Gen AI lie in enhancing employee capabilities and productivity, as well as maintaining competitiveness. However, when it comes to fully understanding Gen AI technology and relying on it to develop AI strategies, around half of female leaders remain undecided.
Taiwanese female leaders believe that the top three aspects where Gen AI has already significantly impacted businesses (or is expected to do so over the next couple of years) include: Enhancing innovation and R&D, Increasing productivity and efficiencies, and Improving talent and the skills of non-IT workforce. For Gen AI to impact business models, drive revenue growth, or redefine corporate business models, more than half of the female leaders believe that it will take a longer time to see significant effects.
In recent years, the geopolitical tensions have emerged as the biggest risk facing the global economy. Female leaders in Taiwan anticipate that geopolitical conflicts or tensions will affect their companies' performance. As the importance of geopolitical considerations in corporate strategies continues to gain significant attention in recent years, it is expected to remain one of the primary risks influencing corporate operations in the future. Additionally, the development of the two major economic powers, the United States and China, is closely related to the businesses led by Taiwanese female leaders. The most common action taken or in progress among these leaders is "Factoring in the internal challenges in the US and China, as well as their impact on other economies exposed to these two markets, into corporate growth forecasts."
58% of respondents reported that their businesses expanded due to geopolitical influences. The main measures taken in response to talent recruitment and composite talent strategies include “recruiting or developing locally based talent with international adaptability," "increasing the budget for employee training and development," "recruiting local talent with overseas work experience," and “recruiting non-local international talent, including localizing talent at overseas branches." Conversely, 42% of respondents stated that their businesses have contracted due to geopolitical influences. To manage costs, the primary strategy in human resources is "restructuring the workforce or reducing employee numbers." When faced with business reductions due to geopolitical impacts, female leaders primarily focus on adjusting their workforce structure or the training budget, with relatively less emphasis on adjusting salaries and bonuses.
3. Sustainability and ESG
84% of female leaders believe sustainability and ESG initiatives to be very important to businesses, and the most widely implemented measures among companies are "ESG measurement and reporting" and "Setting carbon reduction goals or commitments". 49% of female leaders in Taiwan have publicly committed to carbon reduction goals, and 48% have also set a timeline for achieving net-zero emissions.
Emerging sustainability and ESG risks may include environmental, geopolitical, economic, technological, and social risks. Among these, environmental risk is the most prominent challenge faced by female leaders in Taiwan. One of the key responsibilities of the board in implementing risk management oversight is to oversee and assess the potential risks (including opportunities) associated with sustainability issues and their negative and positive impacts. More than 80% of the boards of companies governed by female leaders are responsible for overseeing the organization's sustainability and ESG agenda.
Today, more and more companies are appointing a Chief Sustainability Officer (CSO). In companies led by female leaders in Taiwan, 60% have a CSO or an equivalent position responsible for sustainability duties, with most CSOs reporting directly to the board or CEO. Among the companies currently without a CSO position, 71% plan to hire or appoint a CSO in the near future, with most planning for the CSO to report directly to the CEO and the board, which will likely increase the proportion of companies with a CSO.
4. Overview of Business Differences Between Taiwanese and International Companies
The 2024 White Paper on Female Governance incorporates data from the CEO Outlook Pulse Survey and the CEO Outlook Pulse Survey │ Asia-Pacific published by EY in October 2023, a s well as findings from the 2024 EY C-suite Insights: Sustainability and ESG Trends Index. This section will compare the differences between female leaders in Taiwan and international corporate leaders:
1) Impact of AI on Industries and Response Strategies: Globally, 34%-41% of CEOs reported having "completed" actions in response to AI, while less than 10% of female leaders in Taiwan have "completed" related actions. According to the Global AI Index by Tortoise, Taiwan ranks 26th out of 62 economies developing AI, indicating that Taiwan‘s overall industry is progressing slower in AI development compared to other economies. However, female leaders in Taiwan are actually making faster progress in "applied AI in operations and management" and “developed AI-driven products/services.“
2) Impact of Gen AI on Businesses: 64% of female leaders in Taiwan agree to act now on Gen AI, while a similar proportion (69%) believe that uncertainty around Gen AI makes it challenging to develop and implement an AI strategy. Similar sentiments are echoed by Asia-Pacific CEOs, where 71% share this view. This suggests that while leaders see Gen AI as a significant source of competitive advantage, they are also cautious about the high level of uncertainty involved. More than half of global CEOs believe that Gen AI will take longer to have a significant impact. However, approximately 50% of female leaders expect that Gen AI can quickly or has already enhanced "corporate innovation and R&D," "productivity and efficiencies," and "the talent and skills of non-IT workforce" in the near term.
3) Sustainability and ESG Initiatives: The survey results for female leaders in Taiwan and global senior executives are similar, with both groups considering sustainability and ESG initiatives important for businesses. The implementation rate of sustainability and ESG initiatives, such as "ESG measurement and reporting" and "setting carbon reduction goals or commitments," is significantly higher among female leaders in Taiwan compared to global senior executives. Emerging sustainability and ESG risks may include environmental, geopolitical, economic, technological, and social risks. Among these, environmental risk is the most prominent challenge faced by female leaders in Taiwan, which aligns with the findings of the EY C-suite Insights survey. This suggests that phenomena such as extreme climate disasters, worsening air quality, and ecological destruction are now common risks globally.
4) The New C-suite: Chief Sustainability Officer: 81% of global senior executives surveyed reported having a CSO or equivalent position in their leadership team, while the proportion among female leaders in Taiwan is 60%. This suggests that the concept of appointing a CSO may have originated in large European and American companies. Additionally, 31% of global senior executives indicated that their CSOs report directly to the CEO, with the rest reporting to operations/business departments, finance, marketing, or legal departments. In Taiwan, there is a significant difference, with most CSOs reporting directly to the board or the CEO.
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