Sustainability Consultants as Guides and Steadily Moving Towards a Net-Zero Future

The role of a consultant is to help companies clarify the context. Moreover, the most common issue we see is that companies realize they need to do something and want to have a positive impact, but without clear goals or understanding of the extent of their desired impact, they tend to go with the flow or fall into a greenwashing trap.

by Xin-En Wu, Mei-Hsu Shih

In the global wave of energy transition, Taiwan, being export-oriented, has become a critical battleground for achieving international net-zero goals. NIRAS Taiwan Limited, a subsidiary of the historic Danish engineering and environmental consultancy NIRAS, initially set up its office in Taiwan to respond to the booming offshore wind power market and subsequently expanded its range of services.

"NIRAS came to Taiwan primarily because of the wind power industry, especially offshore wind development, which led us to establish our office here. NIRAS is a Danish multi-discipline consulting company with a long history. Over time, we expanded our operations from Denmark, Europe, to global business, covering a wide range of sectors, including both engineering and environmental consultancy," said Wen Huang, Director of Renewables and Sustainability Advisory Team at NIRAS Taiwan.

Wen Huang, Director of Renewable Team NIRAS

Although NIRAS is best known in Taiwan for its services related to offshore wind and renewable energy engineering consultancy, as well as environmental impact assessments, such as owner engineering, foundation design, design review, environmental impact assessment and advisory, NIRAS possesses a broader spectrum of expertise worldwide, spanning from infrastructure to sustainable development consulting.

Wen emphasized that NIRAS has comprehensive professional expertise, ranging from engineering to environmental sciences, enabling the company to provide integrated solutions more effectively. NIRAS has already established a strong foothold in Taiwan's wind power sector and hopes to introduce more of its international services to Taiwan in the future.

NIRAS's Diverse Business and Development in Taiwan

"In Taiwan, we also offer environmental consultancy services, such as environmental impact assessments, bird surveys, and marine ecological studies. Therefore, we have many ecologists and avian experts on our team. In the Asian region, particularly Southeast Asia, NIRAS also provides numerous sustainability consultancy services. These sustainability services might differ from the corporate sustainability initiatives commonly known in Taiwan, as NIRAS focuses more on supporting developing countries in achieving the United Nations Sustainable Development Goals (SDGs) sustainable transition, including community empowerment, climate adaptation, forestry, and water resource management," Wen explained.

"NIRAS's strategy has always evolved with market trends and client demands," Wen noted. He further explained that NIRAS began the offshore wind consultant service for the first offshore wind farm about 30 years ago, and gradually keeps entering the field of sustainable development, following global trends.

In recent years, Taiwan has made significant progress in corporate sustainability. Wen also observed an interesting phenomenon: the number of consultants and lecturers in the market far exceeds the number of professionals within companies who are actually responsible for sustainability work. This reflects a level of uncertainty among companies when facing sustainability issues, leading to more conservative investment in the sustainability sector.

He further explained, "Consultants play a critical role in this process, especially when companies face uncertainty or need professional guidance. Businesses often rely on consultants to help formulate strategies and action plans."

"The role of a consultant is to help companies clarify the context. Moreover, the most common issue we see is that companies realize they need to do something and want to have a positive impact, but without clear goals or understanding of the extent of their desired impact, they tend to go with the flow or fall into a greenwashing trap," Wen pointed out.

As sustainability issues evolve, Wen hopes that companies will better understand which key aspects of sustainable development are crucial for them and build more professional internal sustainability teams to allocate resources more effectively. This approach should not be just about fulfilling report requirements but should involve clear governance, goals and strategies to truly understand and practice the essence of sustainable development. "It's not just about knowing the new issues but also about improving upon existing and well-understood topics. That’s the real role of a consultant," Wen stated.

Sustainability Consultants Take on Key Supporting Role

Under the global wave of net-zero transition, Taiwan is also facing numerous challenges. Wen mentioned that when he returned to Taiwan in 2016, the awareness of carbon management was relatively limited, and the understanding of concepts like carbon trading was quite vague. Although information spreads quickly, different interpretations can sometimes lead to fragmented or incomplete understanding.

"For example, the EU’s Carbon Border Adjustment Mechanism (CBAM) and sustainability policies, such as the Corporate Sustainability Reporting Directive (CSRD) and the Taxonomy regulation, have undergone lengthy discussions and development. As an export-oriented economy, Taiwan must have a deep understanding of these regulations and their initiatives to maintain its position in the international supply chain," Wen emphasized. He stressed that understanding the background and development history of these rules is more important than simply translating them because many regulations and policies are based on specific social, economic, and environmental contexts, which require professional knowledge and contextual understanding. "It's not about what you need from the outcome, but understanding why the policy, issue, or product exists," Wen emphasized.

"Another interesting topic is the Taskforce on Nature-related Financial Disclosures (TNFD), which reflects that environmental movements have been developing globally for the past three to four decades," Wen explained. He noted that companies not only need to understand how the external environment affects them but also be aware of how they impact the external environment. For example, many companies mistakenly believe they have no impact on the natural environment simply because they do not engage in production activities or only operate within office settings.

"The impact on nature is complex, and just because we think everything is fine now doesn't mean there are no underlying issues. This is why we need to study and understand natural systems more deeply. Technological advancements can help us better understand these relationships and make long-term strategic adjustments to ensure that business activities coexist harmoniously with the natural environment," Wen emphasized. He stressed that conclusions about a lack of impact should not be easily drawn before conducting thorough impact assessments.

He further explained that companies need to better understand how their business models impact the external world and how to sustain their growth without negatively affecting nature. Nowadays business management emphasizes on performance including the nature impact on performance and the related business risks.

Regarding ESG (Environmental, Social, and Governance) issues, Wen stated that this is not a "fake topic" but a responsibility that companies must take seriously. He noted that early discussions about Corporate Social Responsibility (CSR) often began because companies had already caused pollution or faced social protests. Today, companies should proactively identify potential impacts and conduct environmental assessments before project development to minimize their effects.

Regarding ESG (Environmental, Social, and Governance) issues, Wen stated that this is not a "fake topic" but a responsibility that companies must take seriously. He noted that early discussions about Corporate Social Responsibility (CSR) often began because companies had already caused pollution or faced social protests. Today, companies should proactively identify potential impacts and conduct environmental assessments before project development to minimize their effects.

Just Transition Must Not Be Overlooked

Just transition is a significant issue in today’s society. Although current discussions are mostly focused on high-level policy aspects, Wen emphasized that companies must also pay attention to this matter. The importance of just transition lies in its emphasis on not neglecting the people affected during the energy transition process. Even if the transition brings challenges, businesses and governments should strive to provide compensation and opportunities for these individuals to adapt.

Wen further explained that just transition is listed as the final key strategy among the twelve because it covers a very broad scope. Many people may find this topic elusive and unsure of where to start, but it is indeed crucial. Even though initiatives like wind power, hydropower, and electric vehicles seem positive, there are still individuals who will be affected or face losses during the transition, which is the core of just transition.

The goal of just transition is to ensure that no one is left behind during the transition process. "I believe the core idea should be that we do not want anyone to be unable to survive because of the transition," Wen stated. He believes that although it is inevitable that some people will be impacted during the transition, those affected should receive appropriate compensation or opportunities for change. While it may be unrealistic for everyone to fully adapt to the transition, we should strive to provide the necessary assistance and support to those impacted.

Wen shared that one of the earliest and most famous examples of just transition in Taiwan was the change of toll booths on national highways to ETC (Electronic Toll Collection). At that time, the unemployment issue for toll collectors required the government and companies to take measures to help these individuals transition smoothly into new positions. Today, with the widespread use of ETC, many may no longer remember manual toll collection, but for those who relied on this job, it was a significant impact.

We must balance positive and negative impacts to ensure those affected receive appropriate assistance," Wen said. He emphasized that companies also need to consider these issues when facing transitions. For example, we enjoy better air quality with the promotion of electric vehicles, including car, motorcycle, and city bus. We should also pay attention to the supports for traditional automobiles value chain, instead of freely open for the phase-out.

The same applies to the wind industry. "Developers often emphasize how many jobs and economic value they have created but rarely discuss the unemployment risks that come with it," Wen said. "We do not want anyone to lose their livelihood during the transition process, which is the core idea of just transition." While the impact of the transition process is unavoidable, we must ensure that those affected can receive compensation or opportunities for change.

He pointed out that sustainable transition is an inevitable trend, but companies should ensure that no one loses their livelihood due to this transition. "Strategic changes in a company should not just be a statement from the CEO; they need to involve a more comprehensive thought process, including adjustments in production line design, management practices, and employee distribution to meet future challenges," Wen stressed.

Just transition is closely related to the goal of net-zero emissions, involving not only environmental issues but also social, labor, and economic aspects. Wen suggested that companies facing energy transition should adopt forward-looking strategies rather than immediately altering existing business models. For example, companies can take "no regret actions," which they won't regret even if future circumstances change. Such actions can help companies maintain a competitive edge and reduce the impact of the transition.

Wen stated, "Some companies might think these changes are irrelevant to them, but our role is to help them recognize the importance of these trends and develop response plans. This is not just about avoiding being left behind; it's also about maintaining competitiveness in the future." He cited an example from Europe, where many are discussing converting North Sea natural gas pipelines into hydrogen pipelines— it could become a case of just transition. This involves not only technical challenges but also social feasibility assessments, requiring companies to evaluate and prepare for these transitions.

"My personal experience of transitioning from sustainable development to wind power and back to sustainability has provided me with diverse insights that are beneficial for promoting just transition," Wen said. His career spans both sustainability consulting and the wind power industry. Initially specializing in carbon management, he returned to Taiwan to work as a sustainability consultant. Over the years, he has witnessed the growth of Taiwan’s wind power market and the challenges faced by the industry. In the wind power sector, he has found a greater sense of tangible accomplishment, as each wind turbine built represents a realization of green energy and carbon reduction.

As his tenure in the wind power industry grew, Wen began to reconsider his career path. "Sustainability has always been my core value, so when NIRAS offered me the opportunity to work on both green energy and sustainability, I was highly attracted," he said. This role allows him to strike a balance between green energy development and sustainability practices, enabling him to actively participate in industry development while incorporating sustainable principles. Wen believes this career experience equips him to more comprehensively promote just transition and provide substantial support and advice during the corporate transition process.

NIRAS's experience comes not only from international projects but also from practical experience in Taiwan. It can offer comprehensive strategic advice to companies, helping them maintain competitiveness during the transition process and meet future demands.

"Some people may not like what we tell them because it’s too blunt, or because they hadn't thought about it or realized it before. However, the role of a consultant is to serve as a practical reminder. We have real-world experience and integrated approaches from both domestic and international perspectives, with different measurement standards. Bringing this value back to apply it to the industry and benefit society is what truly matters," Wen stated.