With the changing times, not only investors but even governments have begun to pay attention to the impact of ESG on a company. For example, the Financial Supervisory Commission in Taiwan has implemented policies requiring listed companies with a paid-in capital of at least 2 billion to include sustainability reports related to ESG in their corporate disclosures. This demonstrates the significant influence of ESG on a company.What is ESG? How is ESG defined?As early as 2005, the United Nations introduced ESG (Environment, Social, Governance) as indicators for assessing a company's operations.Environment includes issues related to environmental pollution such as greenhouse gas emissions, fuel management, and wastewater management. Companies need to prioritize these environmental sustainability issues and take measures to prevent and control them.Social represents the management of relationships with various stakeholders, encompassing human rights, labor relations, and customer welfare.Governance is closely related to internal policy management within a company, covering business ethics, competition practices within the industry, and more.ESG acts as a health check report for a company, evaluating its overall performance both internally and externally. A company that meets ESG criteria not only requires outstanding financial performance and a balance between employee and shareholder welfare, but also needs to take on greater social responsibility while expanding its business to achieve sustainable operations.Why are more companies paying attention to ESG?There are several reasons why companies have increasingly focused on ESG sustainability in the past few decades.Global AtmosphereFirstly, the changing global atmosphere is an important factor. The importance of environmental issues, social problems, and corporate governance has been increasingly recognized in public awareness. People are becoming more concerned about issues such as climate change, depletion of natural resources, social inequality, and employee rights. This concern arises not only from consumers and citizens but also from governments, non-governmental organizations, and investors. Companies have realized that merely focusing on short-term economic interests is no longer sufficient, and they need longer-term and more comprehensive strategies to address these challenges.Competitive AdvantageSecondly, ESG sustainability is considered closely linked to long-term value creation and competitiveness for companies. Research has shown that companies with strong ESG performance are more likely to attract the attention and trust of investors. Investors are increasingly aware that only by considering environmental, social, and governance factors can they ensure a company's long-term stability and economic returns. This also means that companies with strong ESG performance are more likely to obtain funding and resource support in capital markets and have better business opportunities.Regulations and GovernanceFurthermore, changes in the regulatory and governance environment have also driven companies to prioritize ESG sustainability. More and more countries and regions are implementing laws and regulations that require companies to publicly disclose their ESG information and strengthen regulation of ESG risks and impacts. This has prompted companies to enhance their management of ESG issues to comply with legal requirements and mitigate potential risks.Brand Image and Customer LoyaltyLastly, companies recognize that ESG sustainability is closely related to brand image, reputation, and customer loyalty. Consumers are increasingly concerned about a company's social responsibility and environmental performance, and they are more willing to support companies that make positive contributions to ESG issues. This means that companies need to integrate ESG into their business models and value propositions to earn the trust and loyalty of consumers. This has also given rise to a new investment strategy called ESG investing among investors.In summary, companies have begun to prioritize ESG sustainability due to the changing global atmosphere, considerations of value creation and competitiveness, changes in regulations and governance, and the influence of brand image and consumer demands. ESG sustainability has become a crucial issue for a company's long-term success and responsibility in achieving sustainable development.