What is ESG? How is it different from CSR?
CSR (Corporate Social Responsibility) centers on the idea of "taking from society and giving back to society," emphasizing that while pursuing profit growth, companies should also consider social and environmental issues in their operational decisions.

On the other hand, ESG (Environmental, Social, Governance) is a concept introduced by the United Nations in 2004 that further urges companies to plan their sustainable development around three core dimensions: environmental impact, social responsibility, and corporate governance.

In short, CSR represents a broad philosophy of corporate sustainability, while ESG provides specific actionable areas and measurable criteria to help companies achieve their sustainability goals.
Our company is just beginning to engage with ESG. Where should we start, and which department should take responsibility?
When implementing or transitioning to ESG, companies are advised to begin with a “baseline assessment,” which includes identifying material issues relevant to their industry, evaluating existing resources and capabilities, and setting both short- and long-term goals.

Sustainability is not solely the responsibility of one or a few departments; it is closely connected to the entire organization. Some companies establish a dedicated sustainability department to integrate information across divisions.

The finance department plays a critical role by quantifying the costs of ESG investments and potential financial benefits, as well as integrating ESG objectives into budgeting and performance management systems to ensure that sustainability strategies align with regulatory requirements, corporate financial goals, and customer expectations.
With the growing number of ESG reporting requirements and standards, which reporting framework should we choose (e.g., GRI, SASB, TCFD)? What kind of support can accounting firms or financial advisors
The choice of an ESG reporting framework depends on your intended purpose, industry characteristics, and the needs of key stakeholders.

For instance, GRI (Global Reporting Initiative) is suitable for addressing a wide range of stakeholder interests; SASB (Sustainability Accounting Standards Board) focuses more on financially material issues relevant to specific industries; and TCFD (Task Force on Climate-related Financial Disclosures) concentrates on climate-related risks and opportunities.

In preparing sustainability reports, accounting firms or advisors typically help clarify and define the intended purpose of the report, confirm the overall strategic direction, and then assist companies with planning, implementation, and subsequent evaluation.
What is a greenhouse gas inventory?
A common type of greenhouse gas (GHG) inventory refers to an organizational GHG inventory (there is also product carbon footprint accounting which focuses on products). It involves a company collecting, organizing, and calculating activity data to assess the amount and sources of greenhouse gas emissions generated during its operations.
What standards should be followed for greenhouse gas inventories?
Greenhouse gas inventories should be conducted according to internationally recognized standards to ensure accuracy and consistency. The most commonly used standards are the Greenhouse Gas Protocol (GHG Protocol) and the ISO 14064 series published by the International Organization for Standardization (ISO).

The GHG Protocol is the most widely applied corporate inventory guideline globally, categorizing emissions into three scopes:
  1. Scope 1: Direct emissions
  2. Scope 2: Indirect emissions from purchased energy
  3. Scope 3: Other indirect emissions
It provides a clear framework for inventories.

The ISO 14064 series covers organizational-level accounting (ISO 14064-1), project-level reductions (ISO 14064-2), and verification guidelines (ISO 14064-3), suitable for third-party verification.

Additionally, Taiwan's Environmental Protection Administration has issued the Greenhouse Gas Inventory Technical Guidelines, which integrate the GHG Protocol and ISO frameworks to offer practical methods and format recommendations for Taiwanese companies. These guidelines are applicable for enterprises complying with both the Environmental Protection Administration and the Financial Supervisory Commission requirements.
Which companies are required to conduct greenhouse gas inventories?
Many countries are establishing regulations for corporate greenhouse gas inventories. In Taiwan, there are currently three categories subject to these requirements: entities regulated by the Environmental Protection Administration, listed companies regulated by the Financial Supervisory Commission, and companies voluntarily conducting inventories.

Starting in 2025, the Environmental Protection Administration will impose a carbon fee on power, gas supply, and manufacturing industries with annual greenhouse gas emissions exceeding 25,000 metric tons of CO2 equivalent.
After completing a greenhouse gas inventory, which organizations can assist with third-party verification or assurance?
  1. Verification bodies: Many hold ISO certification qualifications for inspection and verification, such as SGS, BVI, DNV, and others.
  2. Accounting firms: Possess assurance qualifications and can issue assurance reports, such as the Big Four accounting firms.
Depending on the intended use of the third-party report, it is important to confirm whether the verification or assurance organization meets the specific requirements. For example, Taiwanese listed companies that are required by the Financial Supervisory Commission to issue third-party reports must engage assurance providers qualified under the “Guidelines for Assurance Providers of Sustainability Reports for Listed Companies.”

A detailed list of qualified organizations can be found in the announcement from the Corporate Governance Center of the Taiwan Stock Exchange: https://cgc.twse.com.tw/agency/chPage。
In supply chain management, how can we ensure that our suppliers also comply with ESG standards? What impact does this have on our financial risk?
In recent years, sustainability has become a key evaluation criterion for leading companies, and the ESG performance of the supply chain often directly affects a company’s own sustainability risks.

If upstream suppliers are involved in issues such as environmental pollution or labor exploitation, the company may suffer reputational damage, loss of orders, or even legal action.

To mitigate such risks, the procurement department should help assess suppliers’ ESG risks—for example, by conducting supplier assessments—and incorporate ESG criteria into the supplier selection and management process.