In today's global business landscape, sustainability, artificial intelligence (AI), and energy transition are reshaping the fundamental logic of corporate survival and competition. On one hand, ESG has evolved from a buzzword into a core business consideration driving revenue growth. On the other hand, the deep integration of decarbonization processes with AI technology is redefining industrial structures and value creation methods. Simultaneously, as the world's largest carbon emitter and a manufacturing hub for clean technology, China plays a paradoxical yet critical dual role in this transformation—being both the center of challenges and the hub for solutions.
Against this backdrop, a systematic dialogue was held with Will Symons, Deloitte's Asia Pacific Sustainability Leader, exploring the underlying dynamics of this multi-dimensional shift. The discussion covered topics from the essence of ESG to implementation pathways for net-zero transition, from AI governance frameworks to China's unique position in global climate governance. Symons provided a practical roadmap for businesses to manage risks and create value during this profound transformation.
**Beyond Buzzwords: The Core of ESG is Revenue-Driven**
Symons pointed out that despite shifts in public discourse around ESG, sustainability, and climate issues in recent years, corporate actions have remained consistent. He emphasized that this is a key finding from Deloitte's "2025 Executive Sustainability Report." He noted a significant evolution in corporate motivations: a decade ago, business leaders often cited branding, communication, or marketing as key drivers for sustainability initiatives, whereas the current survey clearly indicates that commercial considerations are now the primary motivator. In fact, a majority of executives surveyed identified revenue growth as the main reason for their sustainability-related investments.
Symons stated that the expected benefits of publicly promoting ESG or sustainability goals have diminished in recent years. However, he stressed that underlying corporate actions have maintained continuity. Drawing on 25 years of experience in the field, Symons remarked that he has never seen such a significant disconnect between the actions clients actually report and the tone of public and media discussions. He believes that interpreting corporate ESG actions based solely on public statements constitutes a fundamental misjudgment.
Symons explained that sustainability remains a corporate priority because the drivers for business investment have actually strengthened. Despite changes in public rhetoric and certain market perceptions, the fundamental corporate logic centered on risk and return remains unshaken. Symons illustrated this with an example: at a major gathering of CFOs in the Asia Pacific region last year, he asked attendees if ESG was becoming less important and if companies were scaling back climate investments. Several CFOs immediately responded, "No, business as usual." In Symons' view, this powerfully summarizes the current situation.
He concluded that companies continue to invest because the business imperatives—both opportunities and risks—related to sustainability and climate change have only intensified. An exception exists for some companies operating in the U.S. market, where Symons noted a noticeable shift in the risk-return balance and focus on sustainability issues over the past twelve months.
**Decarbonization is Inevitable; Firms Should Proactively Plan for Transition Opportunities**
Symons emphasized the need to recognize a basic reality: governments across the Asia Pacific region are committed to achieving net-zero targets—most by 2050, with China aiming for 2060. He asserted that the only feasible path for society to achieve net-zero goals is through regulation. This necessity stems from the current economic advantage fossil fuels hold over new energy sources. Without prudent regulatory intervention to reshape market incentives and disincentives, systemic decarbonization cannot be achieved. Therefore, Symons stressed that businesses—from SMEs to large multinationals—must recognize that the regulatory push towards net-zero has only just begun.
He outlined two core principles for effective regulation. First, governments must finely calibrate their regulatory approaches to achieve desired outcomes at a pace that genuinely enables transition. The aim of such regulation is to alter corporate behavior, internalize previously externalized costs (e.g., pollution), alleviate cost pressures on sustainable industries, and thereby align incentive structures with net-zero goals. Second, Symons discussed specific policy adjustments, such as the scaling back of certain Corporate Sustainability Reporting Directive (CSRD) requirements in the EU's Omnibus Act reforms. He views this not as a retreat from climate commitments but as an effort to focus disclosure rules more squarely on achieving tangible outcomes. The EU's sustainability ambitions remain firm, but its mechanisms are being optimized for greater precision and effectiveness.
Beyond cost considerations, Symons highlighted the significant opportunities created by this transition. He cited Australia's energy transition as a concrete example. By rebalancing incentives, the government spurred a shift from coal to renewable energy, particularly through subsidies for rooftop solar. This policy spawned an entirely new market: the number of solar installation companies in Australia surged from around 400 two decades ago to over 10,000 today, the vast majority being small businesses that created numerous direct jobs. While traditional coal-dependent businesses faced market loss, the net result was the creation of new economic value and employment.
Symons concluded that businesses must recognize the clear direction of government policy. The decarbonization roadmap is clear, though the pace of advancement may be adjusted based on economic conditions, geopolitical factors, and competitiveness concerns—as seen in the EU's policy calibration. This does not imply an immediate recommendation to divest from currently profitable assets (like coal plants) that are still necessary for grid stability. However, the long-term trend away from coal towards clean energy is certain, posing transition risks for traditional businesses while creating significant opportunities for firms of all sizes. He advised companies to look beyond a narrow cost-risk perspective and actively seize the opportunities created by this policy-driven transition.
**Proactive Governance and Strategic Integration: Firms Must Not Be Mere Technology Adopters in the AI Era**
Discussing the highly topical issue of AI, Symons broke it down into two interrelated dimensions: the disruptive impact of AI on work and society, and the complex role AI plays in sustainability and climate action.
He noted that generative AI is fundamentally reshaping the nature of work, creating what he termed a "digital labor force." This shift, in his view, requires organizations to completely rethink their understanding of labor and value creation. As new applications and business models emerge, Symons emphasized that key issues—including governance, ethics, resilience, privacy, security, and legal compliance—must be prioritized. He believes transparency and trust must become the cornerstones of this new technological frontier.
To navigate this rapidly evolving field, Symons recommended that organizations adopt a cautious yet methodical strategy. He suggested firms first establish robust and dynamic AI governance frameworks, keeping pace with regulatory developments while continuously assessing related policies, principles, and control mechanisms. Beyond internal governance, he urged businesses to actively engage with the broader AI ecosystem—including developers, deployers, regulators, and customers—rather than merely adopting technology passively. This proactive stance enables companies to participate in shaping emerging markets in ways that align with their strategic interests.
Furthermore, Symons emphasized the need for firms to shift from simply avoiding risks to proactively managing them, paying particular attention to cultivating necessary skills and talent internally. Finally, he highlighted the critical importance of clear communication and organizational readiness, advocating for transparent communication of AI strategies to employees and clients, supported by practical measures like scenario planning and targeted skills retraining.
Regarding AI's application in climate action, Symons observed a significant shift in perception. He acknowledged that AI infrastructure—especially data centers—consumes substantial energy, but pointed out that its potential to drive climate action is even greater. Based on his analysis, AI's analytical capabilities can enable transformative efficiency gains in energy systems, such as optimizing logistics and improving the integration of renewable energy sources, thereby delivering a significant net positive benefit for decarbonization.
To ensure this potential is realized, Symons stressed the need to carefully manage AI's own environmental footprint. He referenced an upcoming report focusing on reconciling the tension between data center expansion and grid decarbonization, previewing several strategic pathways: maximizing on-site renewable energy generation, procuring green power in ways that stimulate new energy investment, and entering long-term power purchase agreements to secure clean energy supply while mitigating price volatility.
He also noted the growing trend of locating data centers within planned renewable energy parks—areas where grid infrastructure is being upgraded for clean energy. Additionally, Symons highlighted the feasibility of intelligently shifting computational loads: moving non-real-time-sensitive computing tasks to periods of peak renewable energy availability, thereby enhancing grid stability and renewable energy utilization rates.
In summary, Symons concluded that organizations must implement purposeful, systematic AI strategies, grounded in governance architecture, ecosystem collaboration, talent development, and transparent communication. Simultaneously, the infrastructure underpinning the AI revolution—especially data centers—must be planned and built with equally clear strategic vision to ensure its development not only aligns with but actively accelerates the global transition to sustainable energy.
**Emitter and Solver: China is a Key Force in Achieving Global Net-Zero Goals**
Shifting focus to China, Symons emphasized that China has long played a vital role in global decarbonization through its unparalleled mass manufacturing of products like solar panels, wind turbines, batteries, and electrolyzers, a role that continues to strengthen. He pointed out that the core significance of China's manufacturing scale is its fundamental role in driving worldwide decarbonization by making key technologies affordable globally. While acknowledging that China, as the world's largest emitter, contributes nearly a third of global emissions, he also stressed that this makes China a critical epicenter in the fight against climate change and the most important country for achieving global net-zero goals. Symons specifically noted the crucial importance of China's upcoming 15th Five-Year Plan, expected in March, which will set new energy and climate targets and represents a key inflection point.
Regarding the key priorities for Chinese companies on their sustainability journey, Symons identified several critical dimensions:
First, he highlighted the significant shift towards mandatory sustainability reporting aligned with International Sustainability Standards Board (ISSB) standards. He noted that, compared to the financial reporting system refined over decades, large enterprises have very limited time to build such sustainability reporting systems, making this transition particularly challenging.
Second, he emphasized that ESG must be fully integrated into core business operations, not treated as an add-on. This requires deeply embedding sustainability into performance metrics, board governance, and executive incentive structures, aligning with the global trend of making the Chief Sustainability Officer a core strategic advisor within the company.
Third, while affirming that carbon is a top priority, Symons suggested Chinese companies broaden their focus to include water, biodiversity, social aspects, and the principle of "double materiality." He mentioned emerging best practices, such as leading companies voluntarily reporting based on the Taskforce on Nature-related Financial Disclosures (TNFD) framework, which he views as a positive signal.
Fourth, he recommended strengthening decarbonization efforts across the value chain. Driven by external pressures like the EU's Carbon Border Adjustment Mechanism (CBAM), many Chinese companies have already begun focusing on this. Collaborating with suppliers to reduce embedded carbon emissions is seen as a strategy to mitigate long-term risks and costs.
Fifth, Symons believes Chinese companies have a significant opportunity to leverage domestic technological advancements, using AI, data platforms, and analytical tools to model emissions, optimize operations, and enhance resilience. He cited a specific example from a recent Deloitte report, which found that using AI globally to improve infrastructure resilience could avoid over $70 billion in losses from extreme weather by 2050.
Finally, he advocated for a strategy of proactive engagement and collaboration—working with policymakers, standard-setters, and value chain partners to help shape a conducive regulatory environment, ensuring companies are not just recipients but active participants in the transition, thereby paving the way for long-term value creation.
**Integration of Decarbonization and AI Will Define the Future Business Landscape**
Discussing the future of sustainable business, Symons pointed to two interrelated megatrends that will determine corporate success or failure.
First, he unequivocally stated that decarbonization and the pursuit of net-zero emissions are top priorities for all businesses. He believes the ultimate winners will be those with clear strategic roadmaps capable of effectively navigating the risks and opportunities along the path to net-zero transition. He emphasized that this transition is the megatrend of our era, and its direction is unequivocal: the global economy is moving towards net-zero, bringing both significant risks and unprecedented opportunities. He is confident this trajectory will persist regardless of short-term political rhetoric or election cycles.
Second, Symons highlighted the transformative integration of AI. In his view, the opportunities from embedding AI into the core of business operations are immense. He pointed out that success will not come from superficial experimentation but from fundamentally rethinking how AI can transform business models to drive revenue and profit growth. He compared navigating AI to addressing sustainability issues: both require treating them as critical, complex business issues with clear strategic intent—a thorough understanding of their associated risks and opportunities is paramount.
Symons acknowledged that managing both trends simultaneously is complex, especially for companies still viewing sustainability as a relatively new paradigm. However, he expressed encouragement that a major shift has already occurred: an increasing number of companies are moving from aspiration to concrete action. Sustainability is no longer just a topic of discussion but an imperative that must be integrated into core decision-making.
He concluded that the key challenge is no longer deciding *whether* to pursue net-zero, but *how* to achieve it in an uncertain political and regulatory environment in a way that maximizes shareholder returns and minimizes risk. To navigate this path—clear in direction but variable in pace—Symons stressed the critical importance of using tools like scenario analysis and proactively communicating with all stakeholders shaping the market, including regulators, clients, and partners. He believes this approach is key to maximizing long-term value.
Comments