More and more companies have recognised the value of sustainability reporting as a means to enhance their corporate reputation and demonstrate their commitments to exercising social responsibility, improving business performances, defining risks and opportunities, and strengthening the attachment of employees to the company. This is one of major tools for businesses to measure and evaluate the effective implementation of sustainable development strategies and enhance competitive advantages for businesses.
On May 28, 2014, the Vietnam Business Council for Sustainable Development (VBCSD), the Vietnam Chamber of Commerce and Industry (VCCI) and the Global Compact Network Vietnam (GCNV) and the Swiss State Secretariat for Economic Affairs (SECO) organised an Introductory Workshop on Sustainability Reporting (G4) in Hanoi. The event was an opportunity for companies and organisations in Vietnam not only learn about G4 directly, but also to raise the awareness of the necessity for sustainability reporting among the Vietnamese business community.
In fact, the Sustainability Reporting is a relatively new concept in Vietnam and in the world as a whole. Most Vietnamese businesses still do not understand the roles of sustainability reporting in their development and integration. Conducted by VBCSD, the survey was joined by nearly 200 outstanding companies representative of various industries like energy, manufacturing and trading in Vietnam but more than 60 percent of respondents had no idea about sustainability reporting. Just a few companies in Vietnam had implemented sustainability reporting. But, the concept and connotation of sustainability reporting has been put forth for discussion at many conferences and seminars in Vietnam and abroad.
Speaking at the workshop, Mr Nguyen Quang Vinh, Director of the Office for Business Sustainable Development (SD4B) under VCCI, General Secretary of the Vietnam Business Council for Sustainable Development, affirmed that companies building sustainability reporting will open up opportunities for sustainable development, particularly in the context of economic integration where the role of sustainability reporting is increasingly important. When deployed, apart from becoming more transparent in the eyes of investors, customers or partners, the companies also have effective tools to measure multifaceted reforms in production and business activities. They can also identify opportunities and risks in their business.
He said sustainability reporting is inevitably a global trend because it is not only a tool for improving business performance and identifying opportunities and risks but, more importantly, a tool for enhancing credibility, demonstrating commitment in exercising corporate social responsibility, and enhancing their competitive advantages towards sustainable development. The governments in many countries have supported businesses to build this reporting.
In addition, transparency, through reporting on these factors, helps orient the sustainable development of each organisation and ultimately the global economy. Sustainability reporting also shows an organisation’s commitments to sustainable development and helps monitor and compare its operations over time.
In Vietnam, sustainable development has been integrated in a wide range of policies and legalised into many laws in recent years. The Government has also issued resolutions, and strategies and orientations for sustainable development. Typical examples are the Green Growth Strategy, Resolution 19/NQ-CP on primary tasks and solutions for improving business environment and enhancing national competitiveness. These are favourable premises to promote the construction of sustainability reporting in Vietnam.
The VBCSD representative recommended ministries and agencies together with VCCI promote and support enterprises to raise their awareness of the roles of sustainability reporting by means of media and equip full knowledge and skills in formulating and implementing sustainability reporting while have mechanisms for encouraging and monitoring their sustainability reporting.
A SECO representative said the Introductory Workshop on Sustainability Reporting will provide a practical sustainability reporting tool for businesses in Vietnam and make their efforts for sustainable development more effective. The SECO representative also emphasised that SECO will continue its supports to popularise best practices in Vietnam.
Dr Doan Duy Khuong, VCCI Vice President, said that Vietnam is facing lots of sustainability challenges like poverty, urbanisation, financial crisis, food and energy price volatility, energy, climate change and natural resources depletion. In that context, sustainability reporting is one of effective tools for tracking and assessing the implementation of sustainable business strategies of enterprises. This report will make companies more transparent in the eyes of investors and other stakeholders in society. He also confirmed that VCCI and VBCSD are currently supporting the government's efforts to step up the application of sustainability reporting guides in Vietnamese enterprises.
A sustainability report covers information on economic activity, environment, society and corporate governance. The report provides [internal and external] stakeholders with the knowledge and understanding of key performance indicators such as energy and water use, greenhouse gas emissions, and human rights issues. Such information is very important as it helps investors, customers, employees, non-governmental organisations and other stakeholders understand a company's capability in managing sustainability risks and competing in a world of dwindling resources.
In the coming time, VBCSD will ask the National Council for Sustainable Development and Competitiveness Improvement and the Government of Vietnam to encourage Vietnamese enterprises to report on corporate social responsibility through sustainability reporting. Besides, VBCSD will collaborate with GRI and GCNV to recommend the Government to guide companies implement sustainability reporting.
Thu Ha
Vietnamese
