ESG allows investment to be evaluated according to the quality of governance, social responsibility, environmental responsibility a company can provide. The importance of such criteria allows stakeholders to properly assess the company’s long-term value in addition to the traditional range of metrics such as financial performance and management acumen.
Strengthening your position in the market requires an emphasis on building up and maintaining robust data security and user privacy measures. Now more than ever, ESG principles will play a vital role in supporting core business goals and holding one’s position at the forefront of an industry.
In the face of global development threats such as the pandemic, resource crises, and climate change, the need for sustainable development has become common sense. People are shifting their attention from the economy’s growth speed to its health and resilience.
Q&A with Mobvista CFO, Sean Song: The Road to ESG
What do you make of ESG and what implications does it have?
“ESG should not be approached in the abstract. Rather, it should be incorporated into the business model, strategies, and offerings. And that’s what our ESG task force is trying to accomplish.”
ESG is not exactly a new term, but it’s gained a lot of popularity recently. Most notably, last year, the Chinese government released a slew of targets and policies related to environmental protection and emission reduction. Meanwhile, the Stock Exchange of Hong Kong(HKEX) started implementing the ESG Guide. The guide requires companies to follow the principles of “materiality”, “quantitative” and “consistency” when making ESG disclosures, and to make ESG part of their governance strategy instead of treating it as a separate reporting framework.
This means companies need to approach growth in a more sustainable manner and to improve their governance efficiency with a view of the big picture. ESG should not be approached in the abstract. Rather, it should be incorporated into the business model, strategies, and offerings. And that’s what our ESG task force is trying to do—an effort that is reflected in our company policies and governance framework as well as in the business value we create and the details of our day-to-day operations. For example, our chairman and CEO are separate so that the board can better supervise the management.
How does Mobvista prioritize its ESG initiatives?
“From optimizing the energy cost of technology infrastructure to going green in the office, we are implementing ESG in every aspect of our operations, and in so doing, delivering long-term value to all stakeholders. That is the focus of our ESG effort.”
Playing it to your advantage is key. As a digitally-native service company, Mobvista focuses primarily on helping its clients cut tech costs while being aligned with environmental protection. In addition to this, our ESG strategy incorporates intelligence and automation into its own operations and uses that experience to help its clients go green. Ever since its inception, the company has been utilizing more centralized cloud server technology to help cut down on physical server rooms and computing centers. Now we are working to popularize this technology. At a time when digital transformation increases the need for physical servers, our cloud tech can help mitigate that need, thus reducing the land and electricity used, which in turn reduces carbon emissions. Meanwhile, we also apply ESG in the details of our everyday operations, like paperless offices. From optimizing the energy cost of technology infrastructure to going green in the office, we are implementing ESG in every aspect of our operations, and in so doing, delivering long-term value to all stakeholders.
On the social side, we took hints from regulatory developments—from the release of GDPR and CCPA to the implementation of IDFA, and Google’s Privacy Sandbox. Governments and industries around the world are paying more attention to privacy protection on mobile devices from the perspective of business and technical details. It’s for this reason, data privacy and product security are becoming an important part of our operations in recent years.
As a diverse team with a global footprint, we place employee experience and growth at the heart of our governance. We encourage all kinds of innovations, training programs, and community and public service campaigns.
How does Mobvista approach ESG?
“ESG is not all about making reports and disclosures.”
Mobvista set up an ESG task force in 2019, which has so far published three ESG reports. Our ESG approach consists of four pillars: brand growth, employee care, environmental protection, community service. And we have taken steps in every key area of ESG, such as privacy protection, service quality, staff training and development, and green operations.
But ESG is not all about making reports and disclosures. Part of ESG’s value lies in the fact that it helps companies act responsibly and make their operations and processes transparent to the public and stakeholders. But then again, companies have the responsibility and the capability to further the wellbeing of the environment and society.
What are Mobvista’s focus and vision when it comes to ESG?
“Being a safe, reliable, and ethical company who uses technology to build business resilience and promote low-carbon development.”
Mobvista is digitally-native and still has a long way to go in terms of ESG. One thing, however, will never change: our commitment to being a safe, reliable, and ethical company that strives to protect data security and to use cloud computing and intelligent tech in an environmentally-friendly way. Going forward, we will continue to strengthen our SaaS toolkit and tech capabilities to better support our own low-carbon transition and that of our clients.