Journal of Applied Finance & Banking

ESG Strategies and CBAM Adaptation in Taiwan Industries: A Case Study on Building Sustainable Competitive Advantage

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• Abstract

   

  This case study examines SW Company, a leading Taiwanese solar energy firm, to illustrate how Taiwanese businesses integrate Environmental, Social, and Governance (ESG) principles into their core operational strategies within the global push for sustainability, and to effectively address the challenges presented by the European Union Carbon Border Adjustment Mechanism (CBAM). SW Company's CBAM response strategy demonstrates a proactive approach, viewing the mechanism as an opportunity for innovation. This is evident in its efforts to optimize product design, enhance energy efficiency, diversify its product portfolio, and foster stronger international collaborations. Concurrently, SW Company actively pursues climate and sustainable finance strategies, including participation in carbon markets and green bond issuances, to reduce financing costs and enhance its sustainable brand image. The study concludes that SW Company's successful approach serves as a valuable model for other Taiwanese businesses, underscoring the critical need for supportive government policies to facilitate a more efficient and competitive sustainable transformation across the Taiwanese business sector.

   

  JEL classification numbers: H25, H26.

  Keywords: ESG, Carbon Border Adjustment Mechanism (CBAM), Carbon Reduction, Sustainable Finance.