The top ESG business in Vietnam are focused on sustainable development

The top ESG business in Vietnam are focused on sustainable development

06 June 2024

ESG is increasingly attracting the attention of investors worldwide, including Vietnam. Companies adopting the ESG business model not only bring profits to investors but also contribute to building a sustainable business environment and community development. Let's explore ESG business in Vietnam with Minmax Green in this article.

 

ESG businesses in Vietnam

What is ESG?

Before learning about the ESG companies in Vietnam, you need to understand what ESG is. ESG is an acronym for Environmental - Social - Governance, established by the Global Compact in 2004.

ESG represents a collection of standards used to measure the orientation and sustainable development activities of a company, indicating whether the company is considering the impact of its products on society and its personnel. From there, the company can identify risks, opportunities, as well as the degree of impact when implementing the three ESG factors (environment - social - governance) into its operations.

From that, the ESG score is used as a tool to assess the impact of a business on the environment, society, and the management performance of the company when managing these impacts. The higher the ESG score, the more it demonstrates that the company is practicing ESG more effectively.

What is ESG investing?

The investment in ESG is a form of investment based on the Environmental - Social, and Governance (ESG) criteria of a company. Investors will focus on units or investment funds with high ESG scores, as they believe that this not only benefits themselves but also positively contributes to society.

The enterprise invests in ESG with the aim of sustainable development

 

When investing in companies that implement environmental protection and sustainable development policies, investors will help minimize the negative impacts of business activities on the environment and the surrounding community. This helps create more long-term value, ensuring sustainable profits for investors while still making a positive contribution to the environment and society.

Companies and ESG investment funds often apply policies and practices of sustainable management, focusing on minimizing negative impacts on the environment, society, and effectively managing corporate governance. ESG investment is considered a way to reduce risks and prevent fraud and inefficient management.

ESG businesses in Vietnam

In Vietnam, numerous businesses have been actively implementing ESG activities, specifically as follows:

Vinamilk

Vinamilk is regarded as a pioneering ESG business in Vietnam. Currently, Vinamilk has implemented numerous sustainable development programs, community support, and environmental protection. Most notably, the "One million trees fund for Vietnam" program, implemented in collaboration with Vinamilk and the Ministry of Natural Resources and Environment. The program is implemented at 56 locations in 20 provinces and cities, with a total value of 12.5 billion VND.(1) Thanks to these contributions to the community, Vinamilk consistently ranks among the most reputable businesses in Vietnam, highly regarded for its social responsibility and commitment to sustainable development.

 

Vinamilk is regarded as an avant-garde ESG business in Vietnam

Novaland

As one of the ESG business in Vietnam, Novaland always focuses on developing sustainable real estate projects, emphasizing energy saving, environmental protection, and enhancing the quality of life for residents. As a result, Novaland has been honored as the "Most outstanding real estate developer in Vietnam" and "Top 10 most reputable brands in Vietnam". Over the years, Novaland has built many green real estate projects, including NovaWorld Ho Tram. This is the first smart ecological urban area in Vietnam, applying advanced technologies to save energy and protect the environment.

The NovaWorld Ho Tram project by Novaland

FPT Group

The FPT Group also ranks among the ESG business in Vietnam, committed to fulfilling its social responsibilities and protecting the environment through numerous practical activities. 

Among them, one can mention the collaboration of FPT with the Thong Nhat Bicycle Company to launch the FPT - Thong Nhat Bicycle Club, aiming to encourage employees to exercise with bicycles, contribute to environmental protection, and improve community health. (2)

With its efforts, FPT has been continuously honored as the best social responsibility company in Asia and one of the top 100 best places to work in Vietnam.

 

FPT encourages its employees to engage in physical exercise by cycling

Hoa Sen Group

Hoa Sen is a leading domestic steel business and is also one of the ESG business in Vietnam, focusing on the production of green steel, minimizing environmental impact, and improving working conditions for laborers. 

Recently, Hoa Sen Group completed the carbon footprint tracing at 3 factories with 20 products of Hoa Sen Sheet, thereby achieving ISO 14064-1:2018 and ISO 14067:2018 standards certification. The Hoa Sen Group has demonstrated the company's responsibility to the environment by completing a greenhouse gas emission inventory report, aiming for sustainable development in the future.

Hoa Sen Group has completed the greenhouse gas emission inventory report

Techcombank

Techcombank is at the forefront of integrating the ESG (ESG Sustainability) framework into its long-term strategy, committed to bringing a positive social impact to the community and society. Accordingly, Techcombank has sponsored the Techcombank Marathon in HCM and Hanoi with the goal of enhancing the spirit of "Becoming Greater" and inspiring a healthier lifestyle.

Techcombank Marathon in Hanoi

The implementation of ESG practices in Vietnamese business

The commitment rate to ESG among listed companies in Vietnam in 2022 is 93%, higher than the average of 80%. However, only 35% of listed companies have established specific plans and commitments on ESG, lower than the region's average of 44%. 

Although companies that integrate ESG into their business strategies will reap long-term benefits, the implementation of ESG is still constrained by challenges. Most companies lack a clear understanding of ESG practice regulations and leadership within the organization. Nevertheless, to compete better in the future, companies still need to raise awareness and adhere to sustainable development commitments and government policies.

Conclude

Vietnam is currently presented with a significant opportunity to emerge as a prominent ESG hub in the region. The advancement of ESG enterprises in Vietnam will contribute to propelling the green economy, fostering sustainable development, and enhancing the quality of life for its citizens.

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References:

  1. https://www.vinamilk.com.vn/vi/tin-tuc-su-kien/2169/vinamilk-va-quy-1-trieu-cay-xanh-cho-viet-nam-trong-cay-tai-nhieu-dia-danh-lich-su

  2. https://fpt.com/vi/tin-tuc/tin-fpt/can-bo-nhan-vien-tap-doan-fpt-va-cong-ty-thong-nhat-dap-xe-di-lam-vi-moi-truong

  3. https://www.vietnamplus.vn/tap-doan-hoa-sen-huong-toi-bao-ve-moi-truong-tu-kiem-ke-khi-nha-kinh-post904745.vnp

  4. https://media.techcombank.com/landing-pages/16/esg-sustainability.html

  5. https://haiquanonline.com.vn/chi-35-doanh-nghiep-niem-yet-tai-viet-nam-da-lap-ke-hoach-va-cam-ket-esg-177770.html

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