From CSR to ESG: Passively Giving Back to Society and Proactively Managing Risks

In the mid-20th century, Howard Bowen, an American scholar known as the Father of Corporate Social Responsibility (CSR), provided a clear definition of CSR: “The obligations of busi nessmen to pursue those policies, to make those decisions, or to follow those lines of action that are desirable in terms of the objectives and values of our society.”

However, under the influence of free-market economics, the shareholder primacy theory has prevailed. As corporate management shifted to ward profit maximization in the mid-to-late 20th century, sacrificing workers’ rights and causing environmental pollution became the norm. Af ter the Cold War ended, an expanded range of business models led to greater diversity of inter actions with various stakeholders. As the 20th century drew to a close, a new wave began to reflect on the societal and environmental impacts of economic activities.

A 2004 report by the United Nations titled Who Cares Wins explicitly defined ESG as a benchmark for corporate evaluation. Wang explains: “CSR fo cuses on corporate responsibility and giving back to society. Conversely, ESG is driven by investors’ cognitive need for risk management. The latter evaluates corporate sustainability capabilities using comparable quantitative metrics; this drives companies to take tangible actions to address issues such as climate change and environmental sustainability through corporate governance.”

《Who Cares Wins》報告（英文）

ESG Reports: Disclosing Nature- and Climate-Related Risks and Actions

Companies publish ESG reports to showcase their sustainability-related plans and achievements and give stakeholders a clearer understanding of sus tainability performance across the three pillars of ESG. These reports are compiled in accordance with the reporting framework established by the International Sustainability Standards Board (ISSB) for general disclosure of sustainability related financial information (IFRS S1) and climate-related disclosures (IFRS S2).

Chang discusses the role of national parks in this context: “Conservation, research, education, and recreation are all part of our mission. In the past, we successfully entered into partnerships with numerous companies and schools by signing memoranda of understanding (MOUs), all with clear communication of benefits and risks.;

For example, to alleviate land subsidence along the Annan coast in Tainan and to create natural carbon sinks, Taijiang National Park has recently worked with corporate partners to pilot the planting of one hectare of mangroves in abandoned fish ponds. The project also incorporates seagrass beds, salt marshes, and other marine resources to develop a blue-carbon ecosystem. Professor Lin Hsing-Juh and his team from the Department of Life Sciences at National Chung Hsing University have contrib uted research support, continuously monitoring mangrove carbon sequestration, greenhouse gas fluxes, and conducting quantitative analyses on how strengthened coastal ecosystem resilience influences biodiversity.

The Taskforce on Nature-related Financial Disclosures (TNFD) released its official framework in September 2023, providing a new framework for nature-related disclosures in sustainability reporting and requiring companies to disclose the dependence, impacts, risks, and opportunities of operational activities on the natural environment. This framework complemented the previously released Task Force on Climate-related Financial Disclosures (TCFD) framework, which many com panies had adopted as a basis for taking action to halt and reverse biodiversity loss—aiming to re store natural ecosystems damaged by economic activities while preventing environmental collapse that could jeopardize operational sustainability.

Conservation as Everyday Practice: A “Nature Positive” Journey

A new wave of momentum surged in 2022, fol lowing the 15th Conference of the Parties to the Convention on Biological Diversity (CBD COP15): In response to the crisis of accelerating ecological imbalance, “Nature Positive” became a keyword. It calls on companies that have excessively depleted natural resources, demanding that they take urgent action to halt biodiversity loss, restore biodiversity, and integrate these results into their risk assessments using relevant metrics. As a result, companies now attach greater importance to multi-objective ESG investments that foster community connections and restore ecological balance.

Chang explained, “Many have speculated that the framework and guidance for disclosure of biodi versity, ecosystems, and ecosystem services-re lated information (IFRS S3) will be released in ear ly 2026. By tracking international developments through the Big Four accounting firms—Deloitte, PwC, KPMG, and EY, we hope to provide compa nies with guidance on ESG reporting.”

Other effective area-based conservation measures (OECMs)provide a successful model for balancing social and economic development and making conservation an everyday practice. With support from Tse-Xin Organic Agriculture Foundation, farmers in the Zhuzihu area of Yangmingshan shifted to environmentally-friendly farming practices for the planting of calla lilies (Zantedeschia aethiopica). This effort also successfully created an aquatic habitat with low-intensity human activities and comprehensive ecosystem services for the endangered Asiatic Banded Water Snake (Trimerodytes annularis). Various educational institutions, including Chinese Culture University, National Ilan University, and National Taiwan University, have also supported the project by investing research resources, assisting in habitat enhancement, and animal and environmental monitoring work.

Universities' Commitment to Sustainability  

Wang has long been committed to USR efforts. "Society has always expected universities to collaborate with local partners to address community issues." The USR framework was initiated by the EU, and later expanded to Japan and Taiwan. It aims to connect local knowledge with society and the economy by leveraging universities' capacity for talent cultivation and problem-solving. 

Wang cited NCYU, where he serves, as an example. "NCYU published its first USR Report in 2021 to showcase its commitment and contributions to social responsibility and actively progress toward the sustainable development goals. The USR Report summarizes NCYU's achievements in four key areas: social services, sustainable campus, support for indigenous and remote communities, and cross-national social service projects." 

He detailed how NCYU has leveraged its expertise to identify areas demanding USR involvement and expanded its efforts to cultivate talent for local revitalization, train teachers to serve remote and underprivileged communities, and provide cross-national social services. Faculty and students across departments actively engage in building sustainable environments in communities, rural areas, and elementary and secondary schools; participate in animal protection advocacy activities in local communities; and promote agricultural processing to empower smallholder farmers. 

Today, "Nature Positive" has emerged as the next sustainability challenge following carbon neutrality, and the role played by universities has become increasingly vital. Based on Wang's analysis of developing AI technologies, "As sustainability remains an inevitable trend, universities will help both public and private sectors enhance their sustainability capabilities by introducing technological applications and offering educational training and certification programs."