Embark on Your ESG Journey Painlessly! 3 Sustainable Finance Solutions and 5 Transformation Paths to Help SMEs Localize Sustainability
- COrey DOMi
- 6 days ago
- 4 min read
"We want to practice sustainability, but without money or resources, it's hard to take that first step." This is a common sentiment among many small and medium-sized enterprises (SMEs) when attempting to promote ESG or draft sustainability reports. Following the first half of the "Boss’s Chatroom | Kaohsiung Special", which addressed the issues of "no people" and "no clue," this article focuses on the other fundamental challenge: "no money." This is not just a threshold for implementing ESG actions and sustainability culture; it is often the critical barrier that makes sustainability reporting feel impossible.
As sustainable finance enters the mainstream, this forum specially invited two key organizations—the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (SMEG) and DBS Bank Taiwan—to share how SMEs can use practical tools and policy support to break through funding dilemmas. In fact, by using the right financial instruments, everything from carbon inventory and sustainability reporting to building an internal sustainability culture is within reach.
DOMI Earth’s "Sustainable Business Model Journey Platform" serves as the bridge connecting financial resources with corporate practice. Through three core solutions—credit guarantees, preferential loans, and action incentives—we help SMEs take their first ESG steps, turning sustainability reports into reality and enabling the true application of sustainable finance.
Solution 1: Government Credit Guarantees—The First Line of Defense for Sustainable Transformation
Financial barriers are the primary hurdle for SMEs in promoting ESG. During the forum, Chang Wen-chiao, Vice President of the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (SMEG), noted: "Sustainable transformation is not a privilege for large corporations. Through the credit guarantee mechanism, we want to ensure companies can 'borrow the money to borrow the change.'"
While SMEG does not lend directly, it acts as a risk guarantor for banks. Even if a company hasn't completed its sustainability report and is still in the planning phase, it can apply for transformation finance solutions by providing preliminary financial statements and specific KPIs. This serves as the ideal starting point for SMEs to implement ESG and put sustainable finance into practice.
Solution 2: Bank Sustainability Loans—Opening the Veins of Capital Flow
Once a company secures a credit guarantee, it can take this "government endorsement" to apply for a bank loan. Cheng Hui-fen, Vice President of SME Banking at DBS Bank Taiwan, stated: "Banks are no longer just lenders; they are partners in a company’s sustainable transformation journey."
DBS has designed interest rate incentives and grace periods specifically for ESG projects—such as paying only principal without interest for the first two years. This significantly reduces initial pressure on the business, making sustainable finance a reality. With complete financial and knowledge support, SMEs can confidently take every step forward.
Solution 3: Incentive Mechanisms—Higher Sustainability Impact, More Resources
For companies that have already launched ESG actions and brought positive impact to society and the environment, DBS Bank offers incentive-based sustainable finance solutions. Beyond additional financing support, some companies may receive annual Sustainability Action Bonuses, rewarding their efforts in the green transition.
This sustainable finance framework emphasizes "impact-oriented" results, ensuring every ESG investment translates into actual returns. Whether it's installing energy-saving equipment, creating social employment, or publishing a sustainability report, any project with clear indicators and trackable results can apply for these resources.
Through cooperation with financial institutions, DOMI Earth ensures that sustainable finance is not just a lending tool, but an ecosystem that supports long-term value creation.
Five ESG Transformation Paths: Creating Your Sustainability Report Starting Point
In addition to the three financial solutions, DOMI Earth has categorized the "Pioneer Program" into five sustainable transformation paths. These help companies evaluate their existing resources and choose the most suitable ESG strategy based on their unique motivations and current status:
Path A | Sales-Oriented: Sustainability for Orders Ideal for companies facing urgent supply chain pressure but lacking long-term investment capabilities. This plan helps companies quickly produce initial sustainability report results to meet market delivery requirements. Paired with sustainable finance tools and diagnostic assessments, it helps build basic ESG capabilities and secure commercial competitiveness.
Path B | Compliance-Oriented: Transformation for Regulation This path focuses on establishing reporting systems and carbon management mechanisms. By combining sustainable finance support with practical execution, companies turn compliance into a governance advantage. It is best for those looking to implement carbon management while reducing legal risks.
Path C | Case making-Oriented: Action for Brand Emphasizing communication and image building, this path amplifies the external impact of ESG achievements. It is suitable for companies with a foundation that wish to deepen their sustainable brand power. It includes coaching and mentoring to deepen ESG substance and strengthen social impact.
Path D | Sustainability Transition-Oriented: Rooting for Culture If a company has completed its initial ESG setup, the next step is embedding sustainability into governance and culture. This path focuses on cross-departmental collaboration and internal education, making sustainability a core part of organizational DNA.
Path E | Legacy Journey-Oriented: Innovation for Vision For companies that have already completed sustainability reports and basic actions. When considering future positioning and the next generation of leadership, sustainability becomes the key to business model reinvention. This path views ESG as the strategic core for family business innovation and generational succession.
Conclusion
SMEs are often held back by the thought of "no money" or uncertainty about how much budget is needed to see results. However, through the integration of the Three Sustainable Finance Solutions and Five Transformation Paths, DOMI Earth provides more than just resources—it provides a strategic roadmap.
From sales and compliance to brand, culture, and legacy, these five paths correspond to the unique starting point of every enterprise. By finding the plan that fits you best, you can forge your own Sustainable Business Model Journey.
👉 Join the Sustainable Business Model Journey Platform now, find your starting point, and launch your next move!
