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What is ESG, and Why is SUNNYYOUNG Prioritizing It?
2023/9/5
Do you know that the European Union's 'Carbon Border Adjustment Mechanism (abbreviated as "carbon tax') will begin trial implementation in 2023? Are you aware that Taiwan will start imposing a 'carbon fee' in 2024? Why are companies rushing to embrace ESG policies? In a fiercely competitive business environment, the key to a company's success lies not only in profitability but also in sustainable operation and social responsibility.
What is ESG, and what are the three main ESG assessment indicators?
「ESG」 is an acronym derived from the initial letters of three major criteria: Environmental (E), Social (S), and Governance (G). It serves as a framework for evaluating an organization's business practices and performance concerning various sustainability and ethical issues. ESG also provides a means to assess business risks and opportunities in these areas. In the capital markets, some investors utilize ESG criteria to evaluate companies and guide their investment strategies, a practice known as ESG investing.
The three main ESG (Environmental, Social, and Governance) indicators are as follows:
1. Environmental (E) :
This category evaluates a company's commitment to sustainable environmental practices, including environmental policies, energy consumption, pollution control (such as greenhouse gas emissions and toxic waste disposal), natural resource conservation, and ecological preservation.
2. Social (S) :
he Social dimension focuses on a company's relationships with stakeholders, including customers, investors, employees, and communities. It encompasses aspects such as customer satisfaction, data protection, gender diversity, employee engagement, community contributions, human rights, and labor rights.
3. Governance (G) :
Governance assesses whether a company can make effective internal decisions, comply with laws and regulations, safeguard shareholders' rights, and meet the interests of stakeholders.
Inspiration and Future Plans for SUNNYYOUNG in ESG
Climate governance and low-carbon transformation are among the crucial challenges facing global businesses today. We understand that planning a net-zero pathway is key to achieving our low-carbon goals. Therefore, SUNNYYOUNG Corporation aspires to gradually develop a climate governance plan to ensure concrete actions in reducing carbon emissions. We must focus on the impact of environmental anomalies on production, which could lead to production disruptions and rising product costs. Additionally, carbon border taxes are also an issue to be reckoned with, and we need to address these challenges in our future development.
Another important issue is sustainable supply chain management. We aim to incorporate sustainable practices into our supply chain and are fortunate to integrate a low-carbon supply chain into our policies to ensure our products meet environmental standards. Equally important, we place a strong emphasis on talent development and organizational growth within our organization. We expect to prioritize the cultivation and retention of talents within our organization, which is crucial for achieving sustainable business goals.
However, we are also well aware that achieving low-carbon sustainability is not without its challenges. All businesses will face internal transformation pressures and the need to establish dedicated departments to address the challenges of ESG carbon reduction. This requires collective efforts from our corporate team to confront these challenges.
Regarding future trends in the world of industries, sectors such as environmental protection, automotive, healthcare, robotics, and more will become important areas of development. We need to continuously adjust our strategies to adapt to these trends.