Display mode (Doesn't show in master page preview)

30 Jan 2023

Econ Digest

Alternatives for the business sector to address sustainability issues


        As the impacts of climate change become more frequent and severe, the global community is raising awareness of sustainability issues with an emphasis on environmental, social, and governance (ESG) issues through setting net zero emission targets and issuing various measures that bring all sectors together to drive sustainable practices while consumers are also paying more attention to this matter. Therefore, businesses need to study and weigh the positive and negative impacts of various alternatives in addressing the sustainability issues, including 1) Continue to operate in the same way as before, as sustainability is still considered a distant matter; 2) Purchase carbon credits to qualify for trading partners’ standards; 3) Adjust activities or optimize available resources to accumulate carbon credits in accordance with the standards; or 4) Improve production processes to reduce carbon emission levels. KResearch is of the view that ESG adoption of each business may vary, depending on its internal factors and external factors, including its circumstances, customer base, the measures of its trading partners and authorities, financial resources and flexibility in taking action.

        The above 4 alternatives are only preliminary guidelines for addressing sustainability issues. First, the business sector must understand the net GHG emissions of their business operations, and their supporting factors or the impact from both domestic and foreign measures. Then, they must carefully study every relevant environmental factor to select the most appropriate approach for each period and may require cooperation with partners or suppliers throughout the supply chain. In addition, as technology is ever evolving and relevant regulations both domestically and internationally may take time to become clearer, businesses can wait for the right time to implement the above alternatives, or adjust them to suit their own circumstances before implementation.

        However, due to limited financial resources and a highly uncertain economic and business context going forward, at first most businesses will likely adopt sustainability practices that do not require substantial investment and have a high degree of flexibility. Subsequently, they can gradually undertake further efforts based on the prevailing circumstances and their needs.

Scan QR Code

QR Code


This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.

Econ Digest