【IBBA-SPEECH】Navigating the Evolving Landscape of ESG and Organizational Reporting

On May 12th, Dr. An-An Chiu, an Associate Professor from Feng Chia University, delivered a thought-provoking lecture to IBBA’s Accounting II class students. Dr. Chiu’s research interests in Finance, Accounting, Corporate Governance, and Business Sustainability, Dr. Chiu presented a comprehensive overview of the trend of ESG (Environmental, Social, and Corporate Governance) and its importance in organizational reporting. Her insightful speech gave the students valuable advice to expand their knowledge and prepare for their careers.

Throughout her lecture, Dr. Chiu emphasized the severe consequences of climate change, the indispensability of ESG principles in business operations, and the pivotal role of reporting ESG performance in business reports. To enhance the learning experience, Dr. Chiu skillfully integrated video content into her lectures, enabling students to understand the environmental, social, and corporate governance dimensions of ESG.

Dr. Chiu introduced stimulating questions that companies should consider when conducting business activities. Questions such as “How will our business adapt to climate change?” and “How prepared are we?” were posed on the environmental aspect. Regarding social considerations, questions like “Do we and our suppliers protect workers’ human rights?” and “Do we ensure fair compensation?” were explored. For corporate governance, the question of “Are we effectively managing our business?” was discussed. By addressing these questions, companies demonstrate their commitment to upholding ESG principles.

To illustrate the practical application of ESG, Dr. Chiu shared an example involving prominent companies like Apple, which require their suppliers to incorporate ESG considerations into their operations. This exemplifies how leading organizations are adopting ESG.

In addition to introducing the concept of ESG, Dr. Chiu underscored its significant role in modern-day businesses. Currently, firms’ performance in terms of ESG is assessed by various stakeholders, including investors, regulators, customers, employees, partners, and suppliers. Dr. Chiu highlighted that ESG presents new challenges in generating profits. For instance, ESG factors influence a company’s access to finance as banks actively reduce their portfolio of high-carbon assets, favoring firms with a thorough understanding of ESG and its associated risks. Shareholders and investors also seek to understand how companies address ESG risks to avoid stranded investments. Dr. Chiu presented relevant research to give students a deeper understanding of ESG in modern businesses. For example, a global investor study revealed that 78% of investors believed sustainable investing was more important than five years ago, with 64% increasing their sustainable investments over the past five years.

From Dr. Chiu’s speech, IBBA students at NSYSU gained valuable insights into the practical application of ESG principles from a global standpoint, equipping them for their future careers after graduation. Dr. An-An Chiu’s inspiring and informative speaking style left a lasting impact, and we eagerly anticipate future opportunities to learn from her expertise.