MioTech seeks more partnerships to expand ESG data services amid tougher disclosure rules

MioTech, which provides sustainability data and software, will form more partnerships with ratings and verification firms to expand its business and help clients meet regulatory demands, founder and CEO Jason Tu said.

As all mainstream global sustainability standards are already available on its data platform, the Hong Kong-based company is looking to extend its product offerings within its core markets in mainland China, Hong Kong, Taiwan, South Korea and Southeast Asia.

“Our next step is to develop more products catering to individual industries where the big brands are driving demand for supply chain sustainability disclosure,” Tu said in an interview. “A lot of the export-oriented manufacturing firms are rushing to ramp up their ESG efforts to gain a competitive advantage against their rivals, especially in the European market.”

In recent months, the company has teamed up with rating and assurance companies to give clients direct access to their services on MioTech’s platform, Tu said. This in turn will fuel the company’s growth and market share, he added.

For example, MioTech and the Singapore subsidiary of sustainability and safety certification provider TÜV SÜD signed an agreement for TÜV to help MioTech’s clients do reporting verification. Similar deals were signed with TÜV’s South Korea unit and TÜV Rheinland China, and more will be sought in other regional markets, Tu said.

MioTech claims to be Asia’s largest company offering ESG (environment, social, governance) data and software. It was founded in 2016 to offer analytics tools to financial institutions just as ESG reporting and disclosures were gaining momentum.

Tu said MioTech has developed software that helps exporters in the textile, chemicals and palm oil industries meet European Union regulations. The rules, which took effect in December, require due diligence to ensure the products they shipped to customers are free of deforestation, he said.