As the Wave of Sustainability Sweeps the Globe, How Should Businesses Respond to ESG Demands?
In the face of ESG (Environmental, Social, and Governance) demands, businesses often struggle with the questions: “What should we do?” and “How should we do it?” This dilemma is especially pressing for small and medium-sized enterprises (SMEs), which operate with limited resources. Finding the most relevant and practical entry point for sustainability is crucial for them.
To address these challenges, DOMI organized the “Boss Talk Room – Investing in Sustainability: Business Opportunity or Unnecessary Expense?” Sustainability Forum. The event gathered experienced SME leaders to share insights, from pain points in business operations to real-world case studies, exploring the possibilities and challenges of sustainable transformation.
Lin Tzu-Lun: Can SMEs Become the ‘Critical Few’ in the Climate Battle?
"G20 countries account for 80% of global emissions. What about the remaining 20%? You, me, and these businesses are part of that equation"
At the forum’s opening, Lin Tzu-Lun, Deputy Executive Director of the Executive Yuan’s Office of Energy and Carbon Reduction, shared first-hand insights from COP29, highlighting the crucial role of SMEs in global sustainability efforts.
He noted that while carbon markets have not progressed as expected, the world is actively seeking more effective sustainability collaboration models. Although Taiwan contributes only 0.55% of global carbon emissions, its strategic position in global supply chains makes it a key leverage point.
Lin emphasized that SMEs should not work in isolation but instead collaborate with upstream and downstream partners to move toward genuine net-zero emissions.
Corey Lien: Carbon as a Tool for Business Model Transformation
Corey Lien, founder of DOMI, responded, saying: "Carbon is a tool that allows businesses to measure the positive and negative impacts of their business models on society and the environment. These external factors are exactly where companies can optimize and transform their sustainable business models!"
Taiwan has the opportunity to become a leader in sustainable transformation. The key question now is not “Should we do it?” but rather “How should we do it?” Choosing to “Be Sustainable” rather than merely “Do Sustainability” is essential. Lin Tzu-Lun emphasized that the central government should lead SMEs in driving sustainability efforts, setting the perfect tone for the forum.
SME Dilemma: Is Sustainability Just a Cost Burden?
"I want to embrace sustainability, but where do I start?" "We spent a lot of money hiring consultants, yet we still don’t understand it."
These are not isolated cases but common struggles among SMEs when navigating sustainable transformation.
When these concerns were raised at the forum, the room erupted with laughter and nods of agreement:
"Is carbon reduction a cost or an investment?"
"We attended workshops and proposed plans, but employees remain indifferent—what should we do?"
"If salaries haven’t increased, why should employees do extra work?"
These seemingly simple questions often become the biggest obstacles to corporate sustainability efforts.
DOMI highlighted that sustainability transformation is difficult because it involves three major factors: people, money, and direction—the very resources that SMEs often lack.
"Most business owners are aware of the importance of sustainability, but when they take the plunge, they quickly realize that it’s not just about filling out forms and paying taxes."
Kwang Nan Steel: Finding Business Value Amid Pressure and Opportunity
Lin Ting-Chou, General Manager of Kwang Nan Steel, acknowledged the steel industry’s dual role—while being the backbone of industrial supply chains, it is also one of Taiwan’s largest carbon emitters.
When he took over the company, he deeply felt the carbon pressure brought by the sustainability wave sweeping through the supply chain. Kwang Nan Steel is actively seeking ways to self-regulate carbon emissions and align with sustainability goals.
Yi Cheng Xing: Leading Circular Economy Through Expertise
Martin Su, Chief Sustainability Officer of Yi Cheng Xing Co., Ltd., represents the next generation of leadership and a new approach to sustainability. As a major global textile materials supplier, Yi Cheng Xing has actively integrated circular economy principles into production, creating new business opportunities from waste reuse.
"For example, our collaboration with IKEA—our reusable shopping bags are made from discarded curtain fabrics."
Additionally, the company's newly built Taichung office building was designed with energy self-sufficiency, setting a benchmark for sustainable architecture. Yi Cheng Xing has already dedicated four full-time sustainability specialists who analyze data and develop innovative waste management solutions.
When asked why the company is investing so much in sustainability, Martin, who previously worked in environmental NGOs, passionately responded: "As a Chief Sustainability Officer, I have two choices: Do it or not do it. Since I’ve decided to do it, I will go all in."
However, he also expressed concern over the fashion industry's sustainability efforts. He observed that as the hype around sustainability fades, many brands are losing momentum in their commitments: "If brands truly want to drive sustainability, they must restructure their business models or introduce external regulatory mechanisms to reignite innovation."
For SMEs, the biggest concern remains:
Is there a market for sustainability?
Will it generate new orders?
These are precisely the core strategic questions in DOMI’s sustainable business model approach—integrating sustainability with business viability.
Overcoming Challenges: Building a Business Model Around Sustainability
Both next-generation business leaders agree that ESG is an important trend, but they are still figuring out how to convince employees and the market of its value.
For SMEs, the three biggest challenges remain:
Lack of manpower
Limited financial resources
Unclear direction
As Martin aptly put it: "Even a small car needs to start its engine. If you wait until you need to move, you’ll realize you can’t."
No matter where a company is on its sustainability journey, the transition is a major challenge. DOMI aims to help SMEs navigate from confusion to action by integrating sustainability into their business models, making them pioneers in the global sustainability transition.
Start now: you can also join the "Sustainable Business Model Platform" for a free 14-day trial and experience the complete transformation journey—from external compliance to internal innovation—helping businesses find the best solutions for a sustainable future! (link below)