With increasing demand for software to meet complex ESG (Environment, Social, and Governance) challenges, Taiwan's software investment is likely to surpassed hardware for the first time this year in the manufacturing industry, especially information electronics and chemical sectors. With businesses prioritizing ESG, the adoption rate for ESG management tools is estimated to grow from 16% in 2022 to 45% in 2023, according to the Market Intelligence & Consulting Institute (MIC) of the Institute for Information Industry (III). "The global investment in information technology is estimated to exceed US$4.6 trillion in 2023 due to external environmental changes, technological progress, and regulatory adjustments, driving demand for software and information services," said Chia-wei Chang, Industry Consultant and Deputy Director at MIC.
Taiwanese Manufacturing Industry's ESG Adoption and Upgrade Status
With the aim of achieving net-zero targets by 2050, Taiwan's Financial Supervisory Commission (FSC) has demanded large-size businesses to disclose their ESG progress by 2023. This has led to a significant increase in the adoption rate of ESG management tools, resulting in a structural change in the traditional hardware-centric investment mindset, particularly towards ESG, cloud, and AI investment.
MIC's research suggests that the manufacturing and construction industries will increase their investment in ESG applications over time, prompting service providers to consider offering integrated services. MIC also notes that the regulation of cloud services use by supervisory agencies has spurred new service and IT import business opportunities.
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