Tech, Supply Chain Innovation Is Crucial for ESG Development, Top Execs Say at Global Summit

(Yicai) Oct. 18 -- Technology and supply chain innovation plays a critical role in driving environmental, social, and governance development, according to executives from US chip maker Qualcomm, German certification firm TüV SüD and other multinationals attending the 2024 ESG Global Conference.

Smart technologies are indispensable in exploring a more sustainable future, Angela Baker, vice president of corporate responsibility and chief sustainability officer at Qualcomm, said at the conference, which was co-hosted by state-owned conglomerate CITIC Group and internet giant Sina Group and had the theme ‘Uniting for Global Prosperity.’

The San Diego-based firm’s semiconductors enable the future of on-device artificial intelligence for smartphones, computers, vehicles, and Internet of Things devices, allowing them to run generative AI models at an extremely low cost and with minimal energy consumption, Baker said.

Syngenta Group invests USD2 billion annually to develop technologies that help farmers increase yields and improve sustainability, Chief Financial Officer Chen Qingheng said at the forum, which ends today. The Swiss agricultural giant uses ESG principles to allocate budgets and resources for innovation projects, ensuring alignment with sustainability goals.

Syngenta has implemented a Portfolio Sustainability Framework to support R&D investment decisions, providing comprehensive assessments and sustainability ratings for each product's economic benefits, carbon footprint, and environmental impact, Chen said.

Businesses need to improve their own ESG practices and consider their impact on upstream and downstream partners, said Xu Hailiang, vice president of TüV SüD China. This inevitably brings significant challenges. Take the fast-growing electric vehicle sector for example, he said. The European Commission’s new battery regulations have set high standards for performance, safety, carbon emissions, carbon footprint, and recycling. Companies unable to meet these requirements will face great difficulties in exporting batteries and vehicles.

Xiaomi Group has put the emphasis on solar energy, automated production and AI technology in the two factories that were opened this year, said Vice President and Chief Financial Officer Lin Shiwei. The Chinese tech giant has developed a strict supplier system over the past decade to ensure suppliers comply with ESG standards.

"We hope to achieve long-term competitiveness and sustainable development through significant investments in ESG," Lin added.