8:36:59 AM | 7/17/2023
“Sustainability is not a cost or burden, but rather an investment and opportunity for businesses,” said Mr. Nguyen Quang Vinh – Executive Vice President of VCCI and Chair of VBCSD in an interview on sustainable development granted to our reporters.
As you always assert that sustainable development is an opportunity and an investment, how do Vietnamese companies optimize their limited resources for this purpose?
The health of companies is the key resource and an essential basis for achieving growth goals. Human, financial, infrastructural, equipment, technological, time and other resources need to be managed and allocated into effective combinations in the long term to achieve long-term sustainable development. However, business leaders should know that resource allocations are arranged for priority goals in each business stage, thus minimizing waste, promoting flexible resource utilization and creating maximum value instead of spreading investment.
The basic principle of resource optimization is to ensure that human, physical, tangible or intangible assets of the business are being allocated for the right purposes, focused on initiatives and important activities in alignment with the company’s business development strategies and State development policies. Therefore, it is very important to collect and integrate information and report on existing corporate resources. This accountability is not only to respond to external requests from the market, investors and authorities but also plays a role in fostering internal administration and internal strategic planning of companies by positively influencing the planning and assessment of available resources, identifying focus and priorities, reviewing implementation and evaluating performance.
To help companies meet these needs and adhere to requirements of sustainable development, green production and responsible business practices, the Vietnam Chamber of Commerce and Industry (VCCI), with the core being the Vietnam Business Council for Sustainable Development (VBCSD), developed the Corporate Sustainability Index (CSI). The CSI is divided into component subindices based on social, environmental, economic and governance frameworks. Every year, CSI is revised and updated with new international standards, policies and laws that affect the operation and development of enterprises.
I recommend that Vietnamese businesses, especially domestic ones with limited resources, approach and research the CSI Index as a sustainable corporate governance tool. From there, they can analyze, review and integrate their existing resources in a scientific and systematic framework. They can then self-assess the effectiveness of management and use of those resources while also accounting for financial and non-financial costs and measuring business health on the scale of sustainable development.
CSI 2023 is assessed by a specialist panel for comprehensive reform in terms of structure, clarity, accessibility and quantification of many business activities in companies. So, what are the weights that companies need to pay attention to?
The CSI Index 2023 consists of 130 qualitative and quantitative indicators divided into seven parts. The 82 common indicators (C) and 48 advanced indicators (A) are evenly distributed into the company profile, economic-environmental-social information, organizational structure and management apparatus, three-year business performance, corporate governance index, environmental index, and social & labor index.
When completing the declaration of quantitative information, companies will have an overview of their business picture and sustainable development approach. This toolkit is suitable for all types of businesses, including small and medium ones, thanks to the comprehensive and inclusive nature of the indicators. New companies can start with the basic metrics illustrated by the directory and build a solid foundation before progressing to advanced metrics. CSI 2023 also integrates the self-assessment scale into the applicant software to help candidates measure their performance results in more detail.
The new and most advanced element integrated into CSI Index 2023 is the requirement on ESG explanation and reporting. What does this mean for companies?
The ESG factor integrated into the CSI Index provides special support to create added value for companies listed on the stock exchanges and helps them prepare ESG-integrated sustainability reporting as required domestically and globally. Waste inventory and emission reductions in each business activity are also included in the CSI Index to accurately assess their contributions to the overall goal of carbon emission reduction by 2030 and a net-zero emissions roadmap by 2050. This helps companies catch up with the green business trend that is advancing strongly in the world.
Delegates at the Vietnam Corporate Sustainability Forum (VCSF) 2022, one of the most important dialogues to promote sustainable development, creating a strong resonance in the business community nationwide
With its pioneering role in promoting sustainable development together with the CSI Program, what specific action programs will you have in the coming time?
To keep up with domestic requirements and global trends, we will focus on the role and contribution of companies in response to climate change, adaptation to sustainable clean energy, circular economy, and green finance towards the green race. Within the framework of the CSI Program, we will promote communication and training to improve their capacity and encourage them to integrate the CSI Index into governance to spread the sustainable business philosophy.
The Program on Benchmarking and Announcing Sustainable Businesses in Vietnam (CSI Program) 2023 was launched by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Central Economic Commission, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Natural Resources and Environment, and the Vietnam General Confederation of Labor. Businesses can apply online at https://vbcsd.vn/csi2023/dn-login.asp. The program is free of charge. The deadline for application submission is August 31, 2023." |
On July 14 and 15, a training program on the CSI 2023 Index will be launched in Ho Chi Minh City for 100 trainees from manufacturing, trading and service companies across the country. A similar training activity is also expected to be held in Hanoi in August. The training program will focus on developing a reporting and accountability framework by applying the CSI Index, practicing the ESG framework, and building a diverse, inclusive and equal corporate culture.
By Huong Ly, Vietnam Business Forum