Survey: 80% of firms see sustainability risks rising

TAIPEI (TVBS News) — KPMG (安侯建業) unveiled its "Taiwan Sustainability Risk Survey" (台灣永續風險大調查) on Tuesday (Dec. 17), revealing that over 80% of companies expect sustainability risks to impact their core competitiveness. The survey identified social sustainability risks as urgent challenges, emphasizing the need for companies to develop "social resilience" to enhance their ESG performance.

The survey highlighted six key warning signals, with respondents expressing concern that six social, two economic, and one environmental risk could affect over 50% of Taiwan's population within five years. More than 75% of companies have yet to prepare adequately, and over 50% of mission-driven organizations believe societal resource allocation remains insufficient. Additionally, 92% of companies have not started or are only in the preliminary stages of preparation.

The survey also found that over 60% of companies face challenges in driving sustainable innovation due to impact assessment, internal awareness, and related expertise. More than 50% of mission-driven organizations lack resources for impact assessment, and over half struggle with talent and marketing to articulate their value. Only 38.1% of respondents hold a positive outlook on Taiwan's future, with generational differences in opinions on accountability.

KPMG CEO Shih Wei-ming (施威銘) noted that while the globally anticipated  Taskforce on Inequality and Social-related Financial Disclosures (TISFD, 不平等及社會相關財務揭露框架) draft will launch in 2025, Taiwan has already been grappling with social sustainability risks. Yu Chi-lung (于紀隆), chairman of KPMG's Sustainability Development Education Foundation (永續發展教育基金會), stressed the importance of integrating sustainability risks into strategic and governance processes through scenario planning, ESG transformation, and innovative strategies.