How Can SMEs Successfully Integrate Sustainability into Their Business Models? DOMI’s Practical Guide – “Sustainable Business Model Journey”

According to the latest SDGs report, only 17% of global Sustainable Development Goals (SDGs) are on track. In Taiwan, among the more than 5,000 sustainability initiatives submitted in 2021, up to 75% failed to integrate effectively into core business operations. This means that many corporate sustainability plans remain superficial and struggle to achieve meaningful long-term impact. For small and medium-sized enterprises (SMEs) in particular, the key question is: How can they integrate sustainability into their business models to create lasting business value?

Drawing from its experience serving 1,500 companies across various industries and scales, DOMI has launched the “Sustainable Business Model Journey” platform to provide practical sustainability transition strategies and solutions. Corey Lien, CEO of DOMI, pointed out:

“More than 90% of businesses in Taiwan are SMEs. If they fail to clarify their corporate purpose—who they are fighting for and why they are fighting—it becomes difficult to connect sustainability with their business models. As a result, they may fall into the vicious cycle of ‘no people, no money, no direction’ and struggle to find their basis in the ESG movement.”

DOMI Reveals Three Key Elements for SMEs to Find Their Sustainability Path

1. Purpose-Driven Approach

A purpose-driven approach means identifying who benefits from the business and why it exists. DOMI believes SMEs must first clarify their corporate purpose to navigate the complex landscape of sustainability standards.

Currently, most businesses still approach sustainability with compliance as their primary motivation. While compliance reduces regulatory risks, it also imposes limitations. Corey Lien emphasized:

“When sustainability is only about meeting external regulations, it loses its long-term impact and transformative meaning.”

This is why DOMI advocates for sustainability to be internally driven, rather than just fulfilling ESG compliance requirements.

Examples of companies successfully implementing a purpose-driven approach include:

• Fairphone – Prioritizes product reparability to reduce electronic waste and achieve long-term sustainability.
• LEGO – Actively transforms its material sourcing and views sustainability as a corporate commitment to the planet.

These companies go beyond compliance, embodying a true corporate purpose that drives their sustainability efforts.

2. Human-Centered Technology Utilization

With continuous technological innovation, businesses need to prioritize how technology is applied from a human-centered perspective.

Corey Lien shared an example of Mammoet, the world's largest heavy-lifting company. A Taiwanese company had purchased new biodiesel technology but had trouble encouraging employees to use it. However, when DOMI engaged employees in a product demonstration for vocational school students, a surprising shift occurred. Employees proudly showcased the biodiesel, commenting that it ‘smells like potato chips.’

When asked why they switched to this fuel, employees responded:

“Because the kids will notice the smell!”

By incorporating human perspectives, technology adoption becomes a deeper, more meaningful ESG practice.

3. Meaning Infusion into Corporate Culture

Another critical element of sustainability transformation is embedding meaning into corporate culture. This means helping employees understand and resonate with the company’s sustainability purpose. When employees feel a personal connection to the company’s sustainability mission, their engagement in sustainable initiatives becomes more proactive and impactful.

Employees are not only executors of corporate sustainability but also storytellers who share and amplify the company’s impact. This sense of purpose enhances internal cohesion and makes sustainability a core part of corporate culture.

The Sustainable Business Model Journey: A One-Stop Solution for SMEs

DOMI’s “Sustainable Business Model Journey” is tailored to the unique needs of SMEs. The platform integrates three key roles:

• Industry Experts – Provide deep knowledge and insights.
• Purpose Coaches – Help businesses formulate customized sustainability strategies.
• Running mate – Offer ongoing support for long-term implementation.

Through its three-tier assessment method, DOMI evaluates sustainability readiness at individual, departmental, and company-wide levels. It also provides workshops, courses, and experiential activities to help businesses clarify their corporate purpose and integrate sustainability into their business models.

For resource-limited SMEs, having long-term, professional coaching support is crucial. This reduces internal trial-and-error costs, enhances sustainability performance, and strengthens competitive positioning in the market.

The Future of SME Sustainability Transformation

Given the slow progress of the SDGs, sustainability transformation for SMEs is no longer just an option but a market-driven necessity. Globally, an increasing number of SMEs are leveraging sustainability to establish their brand identity and expand their influence.

With DOMI’s “Sustainable Business Model Journey”, SMEs can accelerate their sustainability efforts, achieving both commercial success and lasting environmental and social impact.