Executive Master of the Academy of Social Sciences invites Peter Kurz, Mr. Taiwan, to talk about ESG and corporate sustainable development

[Administrative Master's Program News]

"ESG and Sustainable Development" classroom lecture of the Executive Master's Program of the School of Social Sciences. On October 19, we were honored to invite Mr. Taiwan, the CSO of Quantum International Corp (QIC). Mr. Taiwan (Peter Kurz), with the title "The ROI of ESG: Calculating the Value of Good Governance", deeply discussed the impact of ESG on corporate finance and how to respond, as well as its importance in the current global business environment.

Before the speech, Wanying Yang, Dean of the Academy of Social Sciences, and Guangda Luo, CEO of the School of Management and Management, specially thanked Teacher Anya Wang for the arrangement and invitation to the VIP room of the Academy. They also expressed their highest gratitude to the speaker Mr. Peter Kurz in person, and also shared and looked forward to the future of both parties. There will be opportunities for more in-depth cooperation. Kurz holds a master's degree in international relations from Columbia University in the United States, specializing in East Asian studies and international finance and banking. He has extensive connections in Taiwan's foreign capital circle and has a high professional level. He has a deep connection with Taiwan. After graduating from college, he came to Taiwan to study Chinese, and then to Tunghai University for further studies. Later, he married a Taiwanese wife and settled down in Taiwan. After graduating with a master's degree, he first worked in high-tech companies and Wall Street, but he still cared about Taiwan. By chance, he was poached by the Baring Group to open up new territories in Taiwan. He served as Chairman of Citigroup Global Securities and Head of Taiwan Research Department, General Manager of Yuehan Investment Consulting Company, and General Manager of Merrill Lynch Taiwan Branch. He is fluent in Chinese and has an understanding of Taiwan's political and economic situation, so he has the title of "Mr. Taiwan". In 2019, he successfully obtained citizenship of the Republic of China through the senior professional talent pipeline because of his long-term and intensive study of the markets in Greater China, including Taiwan and Hong Kong, and his profound contributions to cultivating professional talents in Taiwan’s financial field and promoting the development of the securities market.

At the beginning of the speech, Kurz explained respectively the three major aspects of ESG - environmental protection (E, Environmental), social responsibility (S, Social) and corporate governance (G, Governance). He emphasized that ESG is not just a set of standards, but a multi-faceted factor that affects a company's long-term development and financial health. First of all, in terms of environmental protection, climate change and pollution are regarded as the most critical challenges for business operations. Enterprises must take effective measures to reduce carbon emissions, optimize resource use, and reduce their negative external impacts on the environment. Among the external impacts of enterprises, carbon dioxide emissions far outweigh other factors and are a priority issue that must be addressed. At the level of social responsibility, employee productivity, health, and welfare are important to businesses. Good social governance can increase employee investment and centripetal force, thereby increasing the company's competitiveness. Through reasonable employee compensation systems and health and welfare plans, companies can not only attract and retain talents but also improve overall work efficiency, which are the cornerstones of long-term corporate development. At the corporate governance level, the role of good corporate governance is in creating wealth, optimizing business operations, and ensuring transparency. Companies with good governance structures enhance investor trust. In addition, the government's promotion of social balance, sound laws and regulations, and the construction of the medical system are also closely related to corporate governance. Companies should maintain cooperation with the government to achieve a win-win situation.

Kurz then discussed in depth the specific impact of ESG on corporate finance. He pointed out through relevant Schroders data that indicators such as income equality, environmental degradation, and public financial governance are in a declining trend globally, which shows that companies need to increase investment in these areas to improve the current situation. Regarding the challenges of supply chain management, the emergence of black swan events (such as epidemics) highlights that companies should have the resilience to cope with unforeseen events. When discussing corporate financing, companies that do not follow ESG standards may face higher capital costs or even lose financing opportunities. As investors pay more and more attention to the ESG performance of companies, those companies that do not do enough in ESG will have more difficulty attracting capital. In addition, regarding ESG investing, there are several challenges, including how to measure the rate of return on intangible assets. Unlike traditional financial indicators, ESG performance is often difficult to quantify due to the lack of a unified reporting framework, which also makes comparisons across enterprises or industries difficult. Although the returns on ESG investments may take longer to materialize, these investments can bring long-term benefits such as risk mitigation and reputation enhancement. Finally, he also discussed the issue of "greenwashing" in depth. Many companies may exaggerate their ESG efforts, thus undermining market trust in the business, and such behavior may result in the exodus of investors and financial losses. Peter Kurz emphasized that companies should remain truthful and transparent in the process of promoting ESG and avoid "greenwashing" behavior solely for marketing purposes.

Kurz pointed out that ESG is no longer an optional choice for companies, but an issue that companies must pay attention to and thoroughly practice. Companies should integrate ESG into their core strategies and commit to making long-term and meaningful investments in environmental protection, social responsibility, and corporate governance. In addition to incorporating ESG into core strategy planning, companies also need to face challenges and responses regarding the introduction and application of AI (artificial intelligence) and cybersecurity. While ESG's short-term returns may be difficult to quantify, companies can achieve long-term financial and non-financial value by promoting ESG strategies, from risk management to capital acquisition to market reputation.

In the final Q&A period, students asked questions about the impact of income instability caused by risks in the semiconductor industry on Taiwan, and how to identify greenwashing by the government or companies. Kurz also responded with 30 years of research and understanding of Taiwan. At the end of the speech, Professor Yijun Lin of the National Institute of Development thanked Peter for coming to share, shared his views, and concluded the lecture. This speech gave students a deep understanding of the new insights and actions companies should have in the new era. Companies must not only pursue short-term financial returns but also focus on long-term social responsibilities and environmental impacts to ensure long-term operations and longevity. continue to develop.

Source: https://reurl.cc/nv8LM1