I believe that the reason is that many Taiwanese companies think that being carbon neutral and sustainable will be a restriction on growth. However, the opposite is actually true. As Prime Minister Suga of Japan stated: 

“We need to change our thinking (in Japan) to the view that taking assertive measures against climate change will lead to changes in industrial structure and the economy that will bring about growth.”

Most global CEOs would agree with Suga. In KPMG’s 2019 global CEO report, 76% of CEOs surveyed said that climate change was the #1 threat to the businesses in the next 10 years. Many CEOs saw 52% of the Global Fortune 500 companies disappear during the last 15 years, mainly because they didn’t adapt to digital fast enough, and they do not want their companies to vanish for not being able to navigate and plan for climate change.

That’s why many CEOs are now taking action, with 36% of the Fortune 500 having now set carbon neutral or science based targets. However, hitting these targets won’t be easy. This recent excellent research from Bain & Co in Sept 2020, Sustainability is the next digital, clearly states the problem:

“The sustainability revolution is arriving faster than many companies expected. No industry is immune to these changes…. but with the global success rate for sustainability initiatives at only 4%, many (company) leaders know that they need to do substantially more”. 

Bain also found that 90% of companies they surveyed feel they need to change their core business model to operate within a truly sustainable economy.

Global corporations such as Samsung, Apple, Microsoft, Ikea and Unilever are already ahead of the curve,  tracking hundreds  of sustainability metrics, with tough targets across their subsidiaries and suppliers. These companies are well aware that hitting these targets can be expensive and complex, but crucial to their future competitiveness. So they are implementing smart data management software, and hiring experienced specialists with a combination of business, data and sustainability experience to set and manage targets. 

For example, Microsoft has already mapped out their pathway to being carbon negative in detail, based on data modelling and forward planning:

At Equilibrium we are already working with many companies around the world to do this, where they use our Carbon Neutral and Sustainability AI Platform, APIs and global specialists to map and implement a similar data driven strategy.

I hope that Taiwan does finally follow it’s neighbours and declare a carbon neutral target. As they do so, there are some recommendations we would suggest based on our global experience so far:

• Set a carbon neutral target as soon as possible. It will help Taiwanese companies innovate and change so they can continue to be globally competitive in the next 15 years.
• Set a target of 50% of renewable electricity by 2030. Anything less than that and a 2050 carbon neutral target is hard to achieve. 
• Put in place more data driven measures for companies on reporting and targets. It’s no longer good enough to produce a simple high level “CSR” report. Take a look at Samsung’s 2020 sustainability targets and reports to see what a global company should be doing now.
• Companies should produce 10 year strategic plans on climate and sustainability similar to Microsoft’s above to be shared with government and shareholders.
• Quantify plans and strategy in data. Implement intelligent software to manage this effectively. 
• Hire sustainability specialists who also understand business. Corporate sustainability teams in the US often now report to the CFO.  
• Get started now. Carbon offsets will only get more expensive. Make reductions now or face a much higher bill later.

Taiwan has to date had a strong track record in sustainability across the region. It’s recent amazing handling of the Covid pandemic has been the best in the world. Hopefully the Taiwanese Government will soon show similar leadership on climate change and join other countries in Asia setting carbon neutral targets.

♦ Taiwan needs to build a brand image beyond COVID-19
♦ Taipei Professional Orchestra: Big Band Jazz Made Possible by COVID-19
♦ Is Taiwan Doing Enough to Address Climate Change in The Hottest Summer Ever?

Uploaded by Penny Chiang