Green Transition for Businesses Path to Net Zero by 2050

The green transition enables businesses to reduce emissions, enhance brand value, and ensure sustainable development, all aligned with the Net Zero 2050 goal.

VCCI President Pham Tan Cong delivers the opening speech at the Vietnam Corporate Sustainability Forum (VCSF) 2024, emphasizing that sustainable development is not only a goal but also a strategic imperative for all businesses  

Prioritizing sustainable development models

At the Vietnam Corporate Sustainability Forum (VCSF) 2024, themed "Net Zero 2050: Nurturing Trust – Creating Transformation”, held on September 10, Mr. Pham Tan Cong, President of Vietnam Chamber of Commerce and Industry (VCCI) highlighted the devastating Typhoon Yagi – the largest in three decades – that the northern region is currently facing. Floodwaters in Lao Cai have surpassed levels from 53 years ago, with the Thao River at a 65-year high, causing severe damage to citizens and businesses. Preliminary estimates showed business losses in the Red River Delta have reached trillions of dong.

"Typhoon Yagi is a stark reminder of global warming, as climate change drives more extreme weather events that jeopardize human survival," Cong emphasized.

For this reason, VCCI President Pham Tan Cong stressed that more than ever, the global goal of sustainable development and combating global warming has become an urgent and vital objective. In this context, sustainable development is not only a goal but also a strategic requirement for all businesses today.

As a responsible nation, Vietnam has made commitments and proactively taken efforts to reduce greenhouse gas emissions. The country has prioritized adopting a sustainable development model through the establishment of two key pathways, he added.

First, adapting to climate change and building resilience. Second, mitigating climate change by decarbonizing the growth process through a structured plan to reduce emissions and steer the economy toward progressively reducing the consumption of carbon-intensive energy, aiming for net-zero emissions by 2050.

Mr. Nguyen Quang Vinh, Vice President of VCCI, Chairman of the Vietnam Business Council for Sustainable Development (VBCSD), and a member of the National Council for Sustainable Development, said that Net Zero 2050 is an urgent and critical goal requiring stronger efforts. Thus, "Nurturing Trust – Creating Transformation" are key drivers toward this objective, which is the theme of this year's 11th VCSF.

On the path to Net Zero 2050 and a sustainable future, the role of the sustainable business community is important. By embracing sustainable development, businesses can secure their operations, enhance brand reputation, and ensure long-term growth. Increasingly, Vietnamese enterprises are focusing on strategies, practices, and assessments aligned with the Environmental, Social, and Governance (ESG) framework, Vinh added.

To support and enhance sustainable corporate governance among Vietnamese businesses, VBCSD- VCCI, has collaborated with top experts to develop the Corporate Sustainability Index (CSI). The CSI is also used as the basis for evaluating the sustainability performance of businesses participating in the annual program for “Benchmarking and Announcing Sustainable Businesses in Vietnam”, organized by VCCI since 2016 under the directive of the Government.

Delegates pose for a group photo at the Vietnam Corporate Sustainability Forum (VCSF) 2024

Business experiences

According to Binu Jacob, General Director of Nestlé Vietnam and Co-Chairman of VBCSD, sustainability should be viewed as a value driver, not a burden for businesses. In the green transition process, there are, of course, many bottlenecks and challenges. One of the key obstacles is connecting the sustainability narrative with core drivers in decision-making related to brand or product selection.

Therefore, businesses need to change their approach and connect with consumers so that sustainable initiatives truly become value-creating drivers. Additionally, companies must strengthen multi-stakeholder cooperation through dialogue platforms like the VCSF to effectively promote the green transition and realize the Net Zero commitment.

Similarly, a representative from Heineken emphasized the 4R approach (reduce, replace, remove, report), coupled with efforts to enhance capacity building, apply innovative solutions, and integrate internal policies with rewards. This strategy aims to align employees with the company’s goals of emission reduction, green transition, and sustainable development.

Focusing on building human resources strategies for sustainable development, a representative from Aeon Retail Group highlighted the importance of enhancing employee capacity on sustainability through specialized training, workshops, and updates on key sustainability topics relevant to the company’s business (such as greenhouse gas inventory, green finance). These efforts are conducted through workshops and training sessions organized by reputable organizations like VBCSD and JICA. Additionally, sustainable development projects are promoted with employee involvement in advisory and partnership roles to raise awareness and increase engagement with the company's sustainability goals.

Nguyen Tra My, CEO of PAN Group, shared that for a business to grow, it cannot deviate from the "track" of sustainable development, and leadership plays a crucial role. The "engine" must fully understand the importance of sustainability for their business. Therefore, PAN has established a Sustainable Development Steering Committee, led by the CEO. This committee includes leadership representatives from all three core business areas: agriculture, aquaculture, and food processing. Their role is to propose strategies and objectives, ensuring that sustainable activities are carried out effectively.

Approaching the green transition journey through strengthening diversity and inclusion, Milly Cheng, CEO of Coca-Cola Vietnam, emphasized the company's long-term sustainable development strategy, "Choose Today, Shape Tomorrow," which is guided by three pillars: products, the planet, and people. With nearly 10 years of continuous support for communities through the EkoCenter project, Coca-Cola Vietnam has consistently innovated to build advanced and resilient communities in the digital era. This has been achieved through STEAM education programs, e-commerce training, circular economy solutions, and climate change mitigation at Coca-Cola’s community support centers nationwide.

Sharing insights on green transition efforts in production, Le Hoang Minh, CEO and Head of the Net Zero Project at Vinamilk, said that the company has a roadmap to reach Net Zero by 2050, targeting a 15% reduction in greenhouse gas emissions by 2027, 55% by 2035, and achieving Net Zero by 2050. Currently, Vinamilk has three farms and dairy plants certified as carbon-neutral under PAS 2060:2014 standards, including the Nghe An Dairy Plant, the Nghe An Dairy Farm, and the Vietnam Beverage Plant. Vinamilk is advancing greenhouse gas inventory, green energy, innovation, and technologies. With 13 internationally certified factories, the company is using energy monitoring software to analyze, optimize consumption, and reduce losses.

By Huong Ly, Vietnam Business Forum