Global trade must adapt not only to risks, but to rising stakeholder expectations for sustainability and accountability

Byline: Scott Wang, Vice President, Asia Pacific, World Trade Centers Association

Global trade is entering a new era, one where resilience, responsibility, and long-term value creation are taking precedence over short-term efficiency. At the core of this shift is environmental, social, and governance (ESG), a framework that has evolved from a regulatory concern to becoming a defining factor in trade strategy, supply chain management, and investment decisions.

In recent years, supply chains have been repeatedly tested — by geopolitical tensions, climate events, labor disruptions, and a pandemic that redefined business continuity. These challenges have highlighted a critical truth: global trade must adapt not only to risks, but to rising stakeholder expectations for sustainability and accountability.

ESG: From compliance to competitive advantage a growing body of research underscores how ESG is no longer optional. According to the 2024 Global Trade Report, 81 per cent of global trade professionals say that ESG is important or very important when selecting suppliers. This view is especially prominent in the United States, where 97 per cent of respondents emphasize ESG, and in the United Kingdom and European Union, where 90 per cent do the same. In contrast, 70 per cent of respondents in Latin America and 58 per cent in the Asia Pacific region consider ESG a key factor in supplier selection, highlighting regional variations in how sustainability is prioritized in procurement decisions.

Why this shift? Because ESG serves as a risk mitigation tool and a marker of operational resilience. Businesses that engage with suppliers who meet environmental and social standards are better equipped to navigate regulatory changes, reputational risks, and consumer demands — all while attracting capital from increasingly ESG-conscious investors. Furthermore, regulatory pressure is mounting. New mandates, such as the EU’s Corporate Sustainability Due Diligence Act, are compelling companies globally to collect supply chain data on carbon emissions, labor practices, and health standards. In parallel, investors and major customers are pushing for transparency and ethical sourcing, reinforcing ESG as a key differentiator in global trade.

For Indian companies, especially exporters, the ability to demonstrate ESG compliance is becoming critical for market access, investor confidence, and long-term competitiveness.

Global Best Practices: ESG As Strategy, Not Slogan
Around the world, businesses are responding by embedding ESG into their core strategies. Examples from across the global World Trade Centers Association (WTCA) network — comprised of 300 World Trade Center (WTC) locations across nearly 100 countries and territories — reveal how diverse approaches can drive meaningful impact. In the Netherlands, WTC Amersfoort is part of a broader urban development strategy aimed at carbon neutrality, using sustainability models benchmarked by the Dutch Green Building Council. This approach reflects a growing recognition that environmental innovation can drive both financial and social value, a sentiment echoed by developers like Cyrille Duchateau, who notes that “without cost-effective green technologies, ESG can’t scale.” Meanwhile, WTC Almeda Park in Barcelona emphasizes the social dimension of ESG, combining energy-efficient design with initiatives like blood donation drives and community outreach. As Business Park Manager Marta Guillen aptly states, “Sustainability isn’t just environmental — it’s human-centered.” In Asia, WTC Taipei demonstrates how technology and governance can operationalize ESG. From smart energy systems to international certifications and tenant engagement programs, they highlight that institutional commitment to ESG enhances both efficiency and reputation. WTC Taipei has earned multiple international certifications, including ISO 50001 and ISO 20121, and engages tenants through its ESG Partnership Program, which rewards alignment with the UN’s 17 Sustainable Development Goals. Their Executive Vice President and Chief Sustainability Officer, Joe Chou, encapsulates this view: “ESG isn’t just compliance; it’s how we future-proof our business.”

Such examples are not anomalies. They are indicative of a broader industry trend: businesses are moving beyond box-ticking to build ESG into their operational DNA, improving resilience in a volatile world.

ESG In Supply Chain Diversification
ESG also plays a vital role in supply chain diversification, which has become a key strategy for businesses facing disruptions due to natural disasters, geopolitical shifts, or labor issues. By broadening their supplier base geographically and evaluating ESG criteria, companies can better manage risk and adapt to shifting trade environments.

This is particularly important for India, where diverse supply capabilities and growing manufacturing strength position the country as an attractive hub — provided ESG compliance is prioritized. Businesses that proactively address carbon emissions, labor standards, and ethical sourcing will find themselves better positioned to capture new opportunities in global markets increasingly shaped by ESG expectations.

From Principles To Practice
The growing focus on ESG in global trade is also evident in industry forums and international dialogues. For instance, this year’s 55 annual WTCA Global Business Forum — hosted by WTC Marseille Provence (WTCMP) in Marseille, France — is bringing together business leaders, policymakers, and investors to explore how ESG principles are being integrated into green infrastructure, real estate investment, supply chain transparency, and social inclusion. Such platforms are not just about discussion, they are helping to accelerate ESG adoption and align global efforts toward building a more resilient, equitable, and sustainable trade ecosystem. Strategically located at the crossroads of Southern Europe and the Mediterranean, WTCMP embodies ESG principles in both its daily operations and its role as an event organizer. “This year’s forum will be fully green — from local sourcing and waste management to content and dialogue,” says Yaël Savignac-Rauzada, Communications Manager of WTCMP. The center is certified ISO 20121 for sustainable event management, ensuring that even the logistics of the 2025 WTCA GBF reflect its core message. “Our goal is to bring ESG from the sidelines to center stage,” she emphasizes.

Looking Ahead: The ESG Imperative
As we move forward, ESG will increasingly define the terms of global trade. For businesses — especially in dynamic markets like India — the question is not whether to adopt ESG, but how to integrate it meaningfully into strategy, operations, and stakeholder engagement.

The rewards are clear — resilience against disruptions, access to new markets, enhanced reputation, and alignment with the future of commerce. The challenges are equally real, but they can be overcome through collaboration, innovation, and commitment to shared values.

In this pivotal moment for global trade, ESG is not just a trend, it is a transformation. The companies that embrace this will not only thrive, they will lead.