DOMI partners with sustainability researchers to release a white paper on the journey of sustainable business models.

This article is a full reproduction from ESG Daily, introducing the sustainability white paper released by DOMI. It details the company's commitment to environmental responsibility and strategies for achieving sustainable development goals.

As rapid changes in sustainability trends such as net-zero emissions, CBAM, TNFD, and human rights create a competitive "puzzle" for companies in adopting sustainability standards, DOMI conducted a survey in July this year on 73 small and medium-sized enterprises (SMEs) regarding "Sustainable Transformation for SMEs." The results revealed common barriers to corporate sustainability transformation: 29% of companies felt overwhelmed by the rapid changes in international ESG trends and vast amounts of information; 26% found internal organizational promotion difficult; and 15% cited a lack of support from top management or limited budgets.

Corey, a Co-founder of the B Corporation movement in Asia and CEO of DOMI, summarized the survey findings: "The three main challenges in corporate sustainability transformation are: no direction, no people, and no money. When corporate resources are limited and there is no clarity on 'why to fight and for whom to fight,' companies often fall into an endless chase of sustainability standards, creating a vicious cycle where 'people' and 'money' are not effectively allocated and remain insufficient. The fundamental solution lies in shifting our mindset, viewing sustainability as a journey, and ensuring its integration with the business model."

Deputy Executive Director Lin Zilun of the Executive Yuan's Energy and Carbon Reduction Office also responded, stating that global and Taiwanese governments have proposed numerous policies to support and assist companies in their ESG transformation amidst the trends of climate change and net-zero emissions. However, despite ten years of progress in sustainability, the pace remains slow, and in recent years, companies have collectively shown a "carbon tilt," signaling that companies cannot just "do sustainability" but must also "be sustainable." Only when sustainability is integrated with the country, cities, and the company's own operations and business model can long-term and effective transformation be achieved.

DOMI, in collaboration with Swedish sustainability researcher Miriam Garvi, combined theoretical frameworks with over a decade of practical experience in driving sustainability globally. Together, they co-authored Taiwan's first "Sustainable Business Model Journey White Paper." The paper points out that the greatest driving force behind corporate sustainability development at present is "compliance." While there are benefits in reducing transaction costs, many times sustainability practitioners and stakeholders cannot see a clear "corporate purpose" and direction for sustainable development, which limits meaningful participation.

Kenji Shino, Asia Environmental and Brand Responsibility Director at Patagonia and Board Member of B Market Builder Japan, also shared insights. Patagonia has always defined its mission as creating the best products with the least harm, using business to inspire and implement solutions to the environmental crisis. In 2022, founder Yvon Chouinard and his family transferred ownership of the company to the newly established Patagonia Purpose Trust and the non-profit organization Holdfast Collective, ensuring that all profits from the Patagonia Group would be used for climate change action and protecting undeveloped land globally. The concept of corporate purpose became the communication core both internally and externally, formalizing it as "We are committed to saving the planet." Shino said, "Corporate purpose changed the way Patagonia viewed itself, from a high standard aimed at the company itself to a sense of responsibility for the entire planet, making colleagues feel a deep sense of meaning that is more profound than simply corporate goals." He also provided examples of how, driven by this corporate purpose, Patagonia focuses not just on eco-friendly materials for clothes, but also on "how to make clothes last longer," even if that means reducing sales. Meanwhile, the finance department began discussing "how to measure the company's non-financial performance," building indicators that connect sustainability performance, even though it was not a formal job requirement. With this purpose in mind, Patagonia also began sharing technology with its supply chain and collaborating across industries, looking for different opportunities to contribute to saving the planet.

In contrast to foreign and large benchmark companies, Taiwan is dominated by SMEs, which require dedicated ESG transformation strategies and solutions. Garvi wrote in the white paper: "In facing modern sustainability challenges, redefining business operations requires more than just gradual change; it involves strategically redefining the organization or industry. Even smaller businesses can drive change." Corey explained the "Sustainable Business Model Journey" with an equation, describing how it can help businesses transform and achieve both "business value" and "sustainability impact value" at the same time. The three key elements are: helping businesses clarify and define their "corporate purpose," applying human-centered innovative technology (Technology), and integrating meaning into corporate culture (Meaning) to enhance sustainability competitiveness from within.

For example, Shiang Cheng Hang, a lubricant manufacturing company with over 60 years of history, defined its corporate purpose as "like lubricant, small but essential for smooth operations."

Understanding its important role in the supply chain's journey toward sustainability, it actively conducted carbon audits and introduced carbon neutrality. Beyond new technologies, it also helped stakeholders understand the social costs created by its products and their environmental impact. Shiang Cheng Hang further inspired employees by integrating sustainability into daily carbon-reducing behaviors. Finally, the company introduced a "Caring Points" mechanism to reward sustainable behaviors, making it part of the corporate culture.

To address the pain points of corporate sustainability transformation, DOMI has launched Taiwan's first-ever "Sustainable Business Model Journey Platform," providing professional consultants and coaches to create personalized journeys for businesses, offering long-term support and helping them avoid blind exploration and resource shortages. By progressively guiding businesses to clarify their purpose and follow the sustainable business model journey, through workshops, environmental and social experiences, and coaching sessions, DOMI aims to help businesses build sustainability leadership and transform their teams to successfully enter the sustainable business model journey.