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With tightening regulations and standards, ESG has become a business imperative for companies. (Image: iStock)
With Taiwan’s carbon fee now in place, the EU’s Carbon Border Adjustment Mechanism (CBAM) in effect, and global sustainability standards evolving, 2026 marks a pivotal shift from voluntary ESG commitments to policy-driven action. This moment calls on companies to assess whether their operations truly reflect low-carbon competitiveness. In this feature series, RECCESSARY explores how businesses are responding to rising regulatory pressure by turning decarbonization into practical, long-term strategies — from policy changes and industry practices to technological pathways.
The ESG agenda has steadily expanded, from clean energy adoption and emissions reduction to broader issues like nature conservation and human rights. With Taiwan’s carbon fee already launched and a wave of new domestic and international sustainability regulations taking effect or nearing finalization in 2026, companies are under increasing pressure not only to accelerate decarbonization, but also to restructure supply chains, financial systems, and reporting frameworks.
RECCESSARY spoke with Eliza Li (李宜樺), leader of Sustainability and Climate Change Services at PwC Taiwan, and Chen Hou-ru (陳厚儒), CEO of Visioncycle, to highlight the key sustainability developments shaping 2026 and the trends ahead. As ESG demands grow, finance and accounting functions are taking on a more strategic role. At the same time, small and medium-sized enterprises (SMEs), often part of Scope 3 emissions, are facing increasing pressure to decarbonize and build sustainability capabilities.
Sustainability shifts toward risk management and implementation as ESG rules expand
Chen views 2026 as a key turning point — a year that will clearly differentiate companies taking ownership of sustainability from those still on the sidelines. He emphasizes that companies which recognize the operational risks posed by climate change and climate governance are more likely to take consistent, forward-looking action.
The re-election of Donald Trump has added new complexity to global ESG discussions. Chen notes that in recent years, sustainability issues have been driven largely by left-leaning political forces, which at times pushed the agenda into more radical territory. Trump's return signals a shift in the opposite direction, likely leading to a period of recalibration. This evolving landscape will test how businesses respond to the combined pressures of shifting trade policies and increasing sustainability expectations.
