Core Viewpoint - The rapid development of ESG (Environmental, Social, and Governance) in China highlights its increasing importance for businesses to maintain competitive advantages and achieve sustainable growth, especially under the "dual carbon" goals. Companies must balance their development with "dual carbon" practices and convert the pressures of these goals into business opportunities [2][4][10]. Group 1: Challenges for SMEs - SMEs face significant challenges in communicating with the government and understanding future development directions and policy trends, often being at a disadvantage compared to large enterprises that can hire international consulting firms for comprehensive dual carbon strategies [2][4]. - The Hong Kong Productivity Council has launched an ESG platform that allows SMEs to diagnose their positioning and weaknesses through a free questionnaire, serving as a secretariat for various government funding applications [4]. Group 2: Business Model Transformation - The balance between "dual carbon" practices and business development is seen as an opportunity to reshape business models rather than merely a cost consideration. For instance, BYD leveraged the "dual carbon" policy to become a leader in China's electric vehicle market [4][6]. - Companies should adopt strategies that align with their specific stages of development, focusing on ESG growth while balancing profitability and market expansion [6]. Group 3: ESG as a Competitive Advantage - Companies can differentiate their brands through effective ESG practices, enhancing consumer emotional connection and loyalty. A well-designed top-level strategy can lead to natural and successful outcomes [9]. - The implementation of ESG initiatives can drive cost reduction and efficiency improvements, as demonstrated by companies like Betaini, which utilized solar power and energy-saving technologies to enhance operational quality [9][10]. Group 4: ESG Investment Perspective - Companies should view ESG not as a compliance cost but as a core competitive investment for the future. This perspective allows them to transform ESG from a cost item into a revenue-generating aspect by aligning with consumer values, particularly among younger generations [10][12]. - Effective ESG management can mitigate future costs related to environmental compliance and supply chain disruptions, thus serving as a risk management tool [12]. Group 5: Identifying "Greenwashing" - There is a need for companies, especially SMEs, to focus on genuine capability building rather than superficial efforts in ESG. Establishing a Chief Sustainability Officer (CSO) can help ensure accountability and effective implementation of ESG strategies [13]. - Common forms of "greenwashing" include selective disclosure and setting vague long-term goals without clear implementation paths [13][14]. Group 6: Regional ESG Development - The Greater Bay Area's production-focused enterprises can benefit from enhanced cooperation to accelerate their "dual carbon" processes, with the Hong Kong government supporting mainland enterprises in carbon accounting services [17]. - A robust ESG system and certification can serve as a "hard currency" in procurement, supply chains, and capital markets, establishing a unified trust metric that reduces communication and verification costs [17][18].