In 2005, the UN announced that global companies should include the three indicators of E – Environment; S – Social ; G – Governance into the criteria for evaluating business operations to enable enterprises to protect the natural environment while pursuing progress. It is also expected that investors can regard the ESG evaluation as the standard for investment, so that ESG can achieve a virtuous cycle in society.
According to a previous report, 《TW Market Leader of Dun & Bradstreet Michelle Sun: When EU, US, and Others Are Promoting CFV, You Should Be Aware of Certain Things! 》, companies and governments had joined the carbon reduction. In addition, many regulatory agencies required suppliers or related manufacturers to promote green manufacturing. The trend of net zero is becoming a pandemic to the world, afterward whether manufacturers or developers will all be inseparable from ESG.
This indeed is a great work, and International Expert of ESG, Michelle Sun, reminds everyone that there is only one thing to do in the beginning.
First step, health check for enterprises, CFV
“When it comes to the ‘E’ of ESG, environmental protection is oriented, and carbon reduction is the first target. Everyone knows the damage to the environment caused by carbon emissions so the companies must know how much damage they have caused to the environment before they start to protect the environment, and to know that, the CFV (Carbon Footprint Verification) must be executed.”
Michelle said that CFV is like a health check to the enterprises and they can know their carbon emissions according to the audit. Most of the carbon emissions come from the supply chain, production process, and operation management. Enterprises can compare the data and study the top projects with the highest emissions, and then develop solutions.
Competition is the past, ESG needs to be done by the whole supply chain!
For the “S” of ESG, the aspect of social, one person’s strength will never be enough, everyone must have the same picture together to implement the ESG correctly.
“Carbon emissions can be divided into three ways: direct operational carbon emissions, indirect carbon emissions from electricity consumption, and all carbon emissions from supply chains and value chains related to enterprises.” Michelle said that these three types of emissions are closely related. The time for downstream suppliers to work together has come.
“Many SMEs and supply chains don’t know how to start carbon reduction, however many leading companies demonstrate how to do it by building green supply chains. For example, UMC promoted a green supply chain in 2017, implementing carbon reduction with suppliers. When it came to 2020, the carbon reduction had reached 409,000 metric tons, after that more than 500 suppliers have followed up, it also drives the virtuous cycle.”
Decision-makers’ support is the key to the succeed
“G” represents governance in ESG. Michelle said that the key to implementing ESG lies in perseverance. The support of decision-makers is crucial, and the consistency of goals between them and the board of directors necessary to establish the foundation of ESG, build and optimize the system continuously, and track the implementation of the plan.
Michelle also mentioned the Dun & Bradstreet offered ESG One-Stop Solution for the enterprise to easily execute net zero.
“Reduce emission, cooperation, perseverance, and the implementation of ESG are indispensable!”
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