IPC International Community magazine an association member publication
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IPC COMMUNITY 64 FALL 2024 How do you view the development of ESG in the international electronics industry? ESG initiatives in the international electronics industry mainly include organizations such as Amfori, the Responsible Business Alliance (RBA), the Joint Audit Cooperation (JAC) in telecommu- nications, and the Automotive Industry Action Group (AIAG). These organizations have consis- tent ESG standards requiring suppliers to sign ESG agreements, undergo audits, and incorpo- rate ESG performance into procurement deci- sions. Companies have varying understandings of ESG, especially focusing on ESG disclosure and ratings. What is your view on this phenomenon? In 2023, I conducted a survey of corporate ESG hotspots, which revealed that ESG ratings, reporting, and carbon reduction are the top three concerns for companies. There is a lot of hype in the current ESG craze. Many companies equate ESG with the sum of Environment (E), Social (S), and Governance (G) and tend to focus on disclosure, ratings, and investments. There is a consensus that current global ESG ratings have low credibility, with doubts about the complete- ness and authenticity of ESG data, unclear ESG rating logic, and issues such as lack of transpar- ency and potential conflicts of interest, leading to much controversy and skepticism. In fact, the core of ESG lies in responsible prod- ucts and services (RPS) and responsible business conduct (RBC). Companies should effectively predict, prevent, control, and remedy the neg- ative impacts their business activities may have on society and the environment to meet the expectations of investors and customers. December 2014, Shenzhen, China: IPC-1401 Standard Committee Meeting. October 2023, Shanghai, China: IPC CEMAC 2023 ESG Sustainability Forum.