On May 18, 2024, the “Professor Lin and Her Friends” Entrepreneur ESG Morning Tea Event, held at the Haidian Campus of Hainan University, concluded successfully. This event invited Dr. Lü Jianzhong, a nationally renowned ESG training expert, to host the session, and brought together elites from various sectors including state-owned enterprises, private businesses, industry associations, and green certification agencies in Hainan for an entrepreneurial salon. Centered on the challenges and opportunities related to corporate sustainable development, the event unfolded into a distinctive and insightful "Mount Hua-style discourse." Mr. Qu Weifeng, CEO of Leverage, was invited to participate in the event. Together with other attendees, Mr. Qu explored how various enterprises in Hainan can seek opportunities amid challenges, pursue green transformation, and realize sustainable corporate development value.

At the beginning of the event, Dr. Lü Jianzhong first introduced the many distinguished guests in attendance. Following this, Dr. Lü elaborated on the core concept of ESG (Environmental, Social, and Governance) values, emphasizing that enterprises should no longer solely pursue the maximization of shareholder interests or profits. Instead, they should strive to create economic value while simultaneously addressing social welfare and environmental protection. ESG is not only a new benchmark for modern corporate management but also an essential pathway for the long-term sustainable development of enterprises.

Guided by Dr. Lü Jianzhong, an intellectual feast on green transformation and value creation commenced. The following is a summary of the event’s highlights and key takeaways.

Balancing ESG Costs and Value

When addressing the question of whether ESG costs outweigh the value they bring, Feng Bin, a Special Practice Professor at the Shanghai International School of Chief Technology Officers, quantitatively illustrated the positive correlation between corporate ESG performance and market value growth. Using Sungrow Power Supply as an example, he explained how ESG practices enhance brand value, attract international capital, and achieve dual gains in economic and social value. He advised companies to integrate ESG factors into their business strategies, building intrinsic value through supply chain optimization, talent attraction, and compliance with regulatory requirements

Synergy Between Social Forces and Cost Savings

In discussing the impact of social forces on cost savings, Yang Wei, Quality Director of Hainan Xiangtai Fishery Co., Ltd., shared how the company balances ecological aquaculture with environmental protection by responding to international ESG standards, thereby improving product quality and expanding into international markets. A representative from a Hainan biotechnology enterprise introduced how the company leverages synthetic biology to utilize resources efficiently, setting new standards for green fisheries and agriculture, with plans to establish a zero-carbon emission biocentre. 

Liang Yuanyuan, Chairman of the Natural Resources Department of the China Pacific Society, emphasized from a non-profit perspective the importance of marine resource protection and rational utilization, particularly in balancing ecotourism and marine conservation amid rapid tourism development. 

Fang Jian, Deputy Secretary-General of the Dual-Carbon Committee of the Chinese Society for Environmental Sciences and General Manager of Fanwang Technology, highlighted the role of certification and compliance in helping companies earn the trust of international clients, as well as the importance of enhancing ESG performance to strengthen corporate competitiveness.

The Phased Development Logic of ESG

Regarding why companies engage in ESG initiatives, Dr. Lü pointed out that companies may initially undertake ESG activities due to market pressure and competition. However, as they evolve, ESG becomes a key strategy for long-term development. Such practices help companies establish stable and transparent governance structures, enhance brand image and market credibility, and thus unlock new business opportunities.

At the conclusion of the event, Dr. Lü summarized that ESG is not only a corporate responsibility but also an essential pathway to enhancing competitiveness and achieving sustainable development. He emphasized that through systematic governance and strategic integration, companies can transform ESG from a cost burden into a source of value creation. Dr. Lü specifically noted that integrating ESG consciousness into products and services is a hallmark of a company’s commitment to long-termism and a key to winning future markets. He encouraged entrepreneurs to boldly face the challenges of transformation and persist in long-term investments in ESG, thereby securing a firm advantage in the fierce market competition.

Throughout the dialogue, the intellectual exchange between Dr. Lü and Professor Feng Bin, along with the active participation of entrepreneurs, created an atmosphere reminiscent of a "Mount Hua-style discourse." This allowed the audience to deeply appreciate that, on the path of ESG, every enterprise is exploring its own "martial arts secret manual." This exchange not only demonstrated the importance of ESG concepts in corporate strategy but also highlighted the necessity of cooperation and shared experience among companies in addressing environmental and social challenges. Through this collision of wisdom, entrepreneurs gained valuable inspiration and a deeper understanding of how to advance corporate sustainable development within the ESG framework.

During the event, students actively engaged with the entrepreneurs present. In just three hours of learning, the students gained a deep understanding of ESG value creation in the context of current corporate strategic transformation. In conclusion, Professor Lin Haiying encouraged the students to cherish this invaluable learning opportunity, draw insights from the practical experiences of the entrepreneurs, enhance their critical thinking abilities, and build momentum for future green development. 

From vigorously promoting corporate sustainable development transformation to helping Chinese enterprises integrate into the global supply chain more seamlessly, responsibly, and confidently, and from advancing business practices for good across multiple dimensions to actively disseminating knowledge, concepts, and best practices related to compliance, responsible supply chains, ESG, and dual-carbon initiatives, Leverage has consistently been committed to driving the sustainable development of supply chain stakeholders through its industry influence.

As both a practitioner and advocate of sustainable development, Leverage not only demonstrates responsible and sustainable best practices to its partners and stakeholders through its own actions but also encourages brands, retailers, and suppliers across the supply chain to engage in proactive and responsible management, thereby enhancing supply chain resilience, through its products and services. In the future, Leverage will leverage the professional expertise of its team to assist enterprises in their sustainable development transformation. We look forward to collaborating with more partners to jointly advance the development of ESG in China.