Prof. WU Qiang, Director of Research Centre for Environmental, Social, and Governance Advancement (RCESGA), Associate Dean of School of Accounting and Finance, recently gave an exclusive interview to Sing Tao Daily, sharing his insights on the latest developments in environmental, social, and governance (ESG). Prof. Wu emphasised that ESG is by no means merely a “public relations expense”. When integrated into core operations, financial strategy and risk management, ESG can yield tangible returns and foster long-term competitiveness.
Prof. Wu noted that multinational brands are increasingly tightening their supply chain standards, making a robust ESG framework an essential prerequisite for entering global supply chains and securing green financing. Businesses, he suggested, must pivot from “passive compliance” to “strategic integration”, focusing on high-impact operational areas such as energy efficiency and route optimisation.
For resource-constrained small and medium-sized enterprises (SMEs), Prof. Wu cautioned against simply replicating the practices of large corporations. Instead, SMEs should adopt a pragmatic, targeted approach, prioritising initiatives with clearly measurable outcomes, such as waste reduction and fuel efficiency. Furthermore, businesses can leverage affordable smart tools, such as Optical Character Recognition (OCR) and Artificial Intelligence, to enhance data management efficiency, reduce administrative costs and enable forward-looking decision-making.
Finally, Prof. Wu reminded businesses not to overstate their ESG performance. Citing cases involving financial institutions such as DWS and Vanguard, which faced hefty penalties over greenwashing allegations, he noted that the greatest risk in advancing ESG lies in making commitments that exceed an organisation’s capabilities. Management must “ensure accuracy in communication first, then substantiate it with solid data”, thereby building stakeholder trust through transparency and authentic reporting.
Online coverage:
Sing Tao Daily - https://polyu.me/4vKPwGy
| Research Units | Research Centre for Environmental, Social, and Governance Advancement |
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