Green Business: Enterprises as the Foundation

Green growth is seen as one of the sustainable growth elements with such prerequisites as efficient use of natural resources, clean growth, minimised pollution and impacts on the environment, and strong reactions to natural risks, environmental management roles and natural capital in material disaster prevention.

 

In fact, in the past 20 years, economic and social objectives are not only compatible with each other but also highly complementary to each other. Growth is the driving force for poverty reduction and social outcomes achieved are very good for growth. But, growth almost always comes with environmental instability. And, environmental damages have reached the level that starts to threaten growth prospects and progress in social indicators.

 

Global growth in income, infrastructure and population in the coming decades is largely dependent on developing economies. So, right from this moment, businesses need to carefully consider and choose right directions from the outset or potential risks from policies changes which may be very costly in the future. Currently, high-income countries account for 16 percent of the world’s population, 75 percent of global consumption and 41 percent of carbon dioxide emissions. To balance development and environmental protection, they necessarily take immediate actions, depending on their responsibilities.

 

Green growth and sustainable development are the core of business strategies that enterprises target at. This not only helps businesses outline clear roadmaps but also helps authorities work out appropriate guidelines and policies for specific stages, thus creating a stronger foundation for businesses to develop steadily in the long term.

 

Hoang Duong Tung, Deputy General Director of Vietnam Environment Administration, Ministry of Natural Resources and Environment, said, the Law on Natural Resources, which is going to be amended, is expected to create a full legal framework to facilitate sustainable green economic development and introduce stricter regulations on environmental protection - the way to help rivers be free from pollution.

 

Vietnam reportedly collected nearly US$1 billion of environmental taxes after a long time striving for a green economy with greener products. Green development is the only way to go now, Mr Tung said.

 

CEOs attending the workshop also said that the most important thing is to create policies to support businesses to head for sustainable green economic development. Ms Ha Thu Thanh, President and CEO of Deloitte Vietnam Company, said "In green development, businesses play a central role because they use all three resources, namely finance, society and nature."

 

As businesses take the initiative, creating a ‘green’ working environment is dependent on them. However, to do so, they must have stable financial resources, which support the development of human on the one hand and support the development of natural resources on the other. Available resources like power source, water and land are used efficiency and economically to minimise gas emission effects.

 

Ms Thanh added that "The size of businesses is not important in new governance thinking but the harmonious use of resources." Green economy and green economic development are the social responsibility of every company and this not only facilitates their sustainable development but also creates a secure environment for development. According to experts, the application of green economic development strategies is perfectly rational to the current situation but the initial implementation still faces a plenty of difficulties.

 

Mr Pham Linh, General Director of Orient Commercial Joint Stock Bank (OCB), said: "At first, we faced with difficulties when we participated in clean and green business programme."

 

Currently, Vietnam is lacking standards for environmental level assessment and environmental pollution levels, he said. Vietnam should have an organisation responsible for supporting enterprises to assess environment and mitigate environmental pollution.

 

Ms Vu Thi Thuan, President of Traphaco Pharmaceutical Joint Stock Company, said the ‘green economy’ still confronts a lot of difficulties when enterprises must decide immediate and long-term goals, apply advanced science and technology to handle environmental issues while the public may not be fully aware of this issue. Therefore, to develop the green economy sustainably, one of very important co-factors is social, labour factors and beneficiaries themselves.