Enterprises Thriving in Green Era

2:44:57 PM | 11/26/2024

A legacy from “green” efforts

Over the past three centuries, humanity has experienced four industrial revolutions, beginning with the First Industrial Revolution (Industry 1.0) in the late 18th century. The invention of the steam engine transformed production and economy, sparking a new era of industrial growth and technological progress.

Industry 2.0, in the late 19th century, introduced electricity and mass production. Industry 3.0, in the 20th century, brought electronics, information technology (IT), and automation. Today, Industry 4.0 is defined by artificial intelligence (AI), the Internet of Things (IoT) and renewable energy.

These revolutions have driven remarkable progress across all areas, from manufacturing, healthcare and education to information technology, significantly improving human life by increasing average life expectancy, enhancing the quality of living and expanding sustainable development. However, they have also brought challenges, including growing social inequality, environmental degradation and climate change. These issues extend beyond national borders, creating global-scale challenges that directly affect the lives of billions.

On November 10, just ahead of the United Nations Climate Change Conference (COP29) in Azerbaijan, the International Chamber of Commerce (ICC) released a report revealing that the total damage from extreme weather events driven by climate change over the past decade (2014–2023) has reached approximately US$2 trillion. This figure mirrors the losses incurred during the global financial crisis of 2008. Notably, in 2021 alone, 2.3 billion people around the world faced moderate to severe food insecurity. Moreover, 2023 data shows the loss of 3.7 million ha of primary tropical forest, about 10 football fields every minute, highlighting the severe impact of climate change on the planet.

Throughout the course of human and national development, the business community has always played an important role. In the present and future context, as profit-driven business models are gradually being replaced by nature-positive and responsible practices, a crucial question every enterprise must ask itself is: “What legacy will we leave for future generations?”

The Vietnam Corporate Sustainability Forum (VCSF) is one of the most important platforms for dialogue between the Vietnamese government and the business community, aimed at advancing sustainable development

Transforming from today…

Aiming for a sustainable future is not merely a choice but a necessary mission to build green legacies for future generations. This transformation is demonstrated through tangible actions from the global business community. For instance, 6,046 companies, representing over one-third of the world’s total market capitalization, have committed to greenhouse gas (GHG) emission reduction targets based on scientific principles, with 75% of them focusing on Scope 3 - the most complex and hardest to control scope.

Global initiatives like the Global Circularity Protocol, which helps companies track circular economy goals, and the WBCSD’s Carbon Neutrality Demand Center, uniting companies towards zero emissions, reflect the business community's commitment to transitioning from a "gray" to a "green" economy where profits are balanced with environmental and long-term sustainability.

In Vietnam, we take pride in the pioneering companies driving sustainable development, showcasing strong adaptability and a remarkable ability to seize opportunities. Companies such as PNJ, Vinamilk, Traphaco, Bao Viet, Sasco, Nestlé, Heineken, Sabeco, Coca-Cola and Unilever Vietnam are venturing into green production, integrating circular economy models into their supply chains, and driving efforts to reduce greenhouse gas emissions. This not only helps them maintain a strong position in competitive markets but also creates social value, providing sustainable livelihoods for vulnerable communities through inclusive business models, implementing Environmental, Social, and Governance (ESG) assessments, and setting an example for other businesses to follow.

These innovative and responsible actions prove that companies can focus not only on economic growth but also on protecting the planet. This journey is both challenging and hopeful, where every effort today contributes to a sustainable and prosperous future for all. The green steps businesses take now will lay the foundation for a better world.

The CSI Program, initiated and developed by VBCSD-VCCI, has earned strong recognition from the government and been integrated into key policies on corporate sustainability. In the photo: The most sustainable companies are honored with CSI Awards 2023

To thrive in the new era...

The journey of building a green legacy for businesses cannot be sustainable without a solid foundation, which is the health of the company, strengthened by sustainable corporate governance capabilities. With more than 96% of businesses in Vietnam being small and medium-sized enterprises (SMEs) with limited resources and insufficient attention and investment in corporate governance, this creates a barrier for these companies as they pursue sustainable development strategies and seek access to green financing.

To remove this barrier, VBCSD-VCCI initiated the development of the Corporate Sustainability Index (CSI) in 2014 and launched the Program on Benchmarking and Announcing Sustainable Companies in Vietnam in 2016 under the direction of the government. Entering its 9th year, we are pleased to see the 2024 CSI Program continuing to receive guidance and support from 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. Over the past nine years, these initiatives have earned strong recognition from the government and been integrated into key policies on corporate sustainability. The CSI’s influence has also reached an international level, becoming a legacy project of the ASEAN Business Advisory Council (ASEAN BAC) Vietnam.

For businesses, participating in the CSI Program not only offers the title of "sustainable enterprise" but also provides a valuable opportunity to assess their sustainability progress, identify areas for improvement, and develop a risk management plan to strengthen corporate governance. This focus on continuous improvement and positive change distinguishes the CSI from other programs and has been the driving force behind its sustained success over the years.

Hundreds of companies recognized in the program will be brought together in the "CSI Club" - a place to connect, share and inspire these exemplary businesses to remain determined, focused, and energized as they continue their challenging yet glorious path toward sustainable development. A journey of a thousand miles begins with a single step. The Vietnamese business community is united in advancing into the new era, driven by the green steps taken today.

Ms. Dao Thuy Ha, BoD’s member and Chief Operations Officer, Traphaco Joint Stock Company

Traphaco remains steadfast in its mission of "Innovating green products to care for human health," aspiring to become a trusted pharmaceutical brand for generations of Vietnamese families. With over 50 years of expertise in traditional medicine, we proudly offer products crafted from internationally certified medicinal sources, enhanced by modern technology and stringent quality controls, cementing Traphaco's position as Vietnam’s leading herbal medicine company.

Since 2022, we have restructured around two strategic product lines: premium herbal medicine and high-quality western medicine. Our premium herbal medicines combine the essence of traditional wisdom with modern scientific achievements, anchored in three core values: heritage, innovation, and sustainability. In western medicine, we have collaborated internationally to develop bioequivalent and next-generation drugs, providing affordable, high-quality options for consumers.

Aligned with ESG standards, Traphaco drives green growth by conserving biodiversity, fostering sustainable medicinal material regions, and advancing gender equality through collaborative farming models. By adopting the CSI, we measure sustainable development outcomes, optimize value chains and enhance competitiveness.

In the digital era, Traphaco is committed to continuous innovation, maintaining its leadership position, delivering value to the community and maximizing returns for investors.

Mr. Kulachet Dharachandra, Country Director of SCG Vietnam

Our commitment to sustainability at SCG in Vietnam is deeply rooted in our ESG 4 Plus strategy, which guides our operations and aligns with Vietnam's broader sustainability goals. We are proud to have achieved recognition in the Top 100 Sustainable Companies in Vietnam for many consecutive years, a testament to the effectiveness of our ESG initiatives and the dedication of our member companies, including Binh Minh Plastics, Vina Kraft Paper and Prime Group. By participating in the CSI program, we can benchmark our efforts against industry standards, ensuring that we meet and exceed the expectations of our stakeholders. The insights gained from the CSI assessments empower us to refine our strategies, enhance operational efficiency and foster innovation that resonates with consumers and investors.

Moreover, our engagement in the CSI program reinforces our dedication to creating long-term value for society while driving business success. As we implement initiatives under the ESG 4 Plus framework, we address pressing environmental challenges and contribute to the economic development of the communities we serve. Our participation in this program exemplifies our belief that sustainable business practices are essential for achieving Inclusive Green Growth for all.

Mr. Lester Tan, CEO of Saigon Beer – Alcohol – Beverage Corporation (SABECO)

As a leading corporate in Vietnam with 26 breweries, 11 trading companies, and a distribution network of more than 200,000 retailers nationwide, SABECO integrates ESG principles into our operations not only for sustainable business growth, but to support community well-being.

With the net-zero target by 2050, in recent years, SABECO has acted on urgent environment issues by undertaking green transition in production. SABECO’s breweries, in fact, have switched from diesel to eco-friendly liquefied petroleum gas forklifts and used BIOMASS boilers instead of fossil fuel boilers. We have also installed water replenishment systems and solar rooftop panels, aside from efforts to promote downgauging and recyclable packaging.

Seeing people as a key drive for sustainable growth, SABECO have helped unlock the full potential of our workforce as well as different communities such as rural towns and young talents to contribute to Vietnam’s prosperity through support programs.

At the same time, we have collaborated with stakeholders for synergies and positive impacts on the community where we operate, together with SABECO system and value chain partners. Those impacts include the positive culture of balanced active lifestyle and ethical and legal compliance.

We are honored that our efforts have been recognized by the CSI, which confirms our chosen ESG strategy as well as being a good opportunity for us to foster our sustainable growth to strengthen the leading position of SABECO in Vietnam and contribute to community development where we operate.

Ms. Tran Ngoc Anh, Corporate Affairs Director HEINEKEN Vietnam

At HEINEKEN Vietnam, sustainability has always been central to how we brew, promote, and sell our products. It is the way we run our business and stay close to the local community in both good and challenging times. Looking ahead, the growing challenges in sustainability would need a stronger collaboration across industries and sectors. We firmly believe that collective actions will continue to play a crucial role in creating lasting social and environmental impacts for Vietnam.

By advancing our efforts in maximizing circularity, reducing carbon emissions and conserving water, we have aligned our ambitions with Vietnam’s goals for sustainable development. Most notably, on our path to zero environmental impact, we have set ambitious targets to achieve Net Zero in production by 2030, and across our entire value chain by 2040. At the same time, we are dedicated to fostering an inclusive, fair and equitable world by promoting diversity in the workplace and supporting local communities. We also passionately advocate for moderation and responsible drinking. These actions reflect our holistic approach to sustainability, supporting Vietnam's national goals while brewing a better world for all.

The Corporate Sustainability Index (CSI) Ranking by VBCSD-VCCI is a great forum for businesses to share insights and best practices in sustainability, encouraging us to scale impactful models, and empowering small and medium-sized partners in our supply chain network to tackle sustainability challenges.

Mr. Vu Quang Dong, Acting Head of Markets Division, Vietcombank

Vietcombank, as a leading commercial bank, places sustainable development and environmental protection at the heart of its strategic objectives. Over recent years, we have consistently prioritized financing for environmentally sustainable projects. Between 2020 and 2023, Vietcombank’s green credit portfolio saw a remarkable growth, increasing nearly fourfold from over VND11,765 billion in 2020 to VND46,100 billion by December 31, 2023. Our recent successful issuance of VND2,000 billion in green bonds has garnered positive attention from investors and prestigious international organizations.

As demand for investment in environmentally responsible projects rises, we recognize green bonds as an effective tool for mobilizing capital at competitive costs. The proceeds from these bonds will be directed toward projects across seven key sectors: renewable energy, sustainable transport, water management, green buildings, waste management, sustainable agriculture, forestry and fisheries, and energy efficiency.

We are committed to advancing beyond green bond issuance. In alignment with our Development Strategy to 2025, with a vision to 2030, we are focused on strengthening our green banking strategy and expanding the range of green financial instruments. We will refine our criteria and policies to channel credit flows toward businesses adopting new technologies, low carbon emissions, and enhanced international competitiveness. Our emphasis will be on industries such as renewable energy, clean energy, green infrastructure, and the startup ecosystem, all of which contribute to environmental protection and the efficient use of resources and energy. For us, sustainable development is more than a trend; it is a responsibility and a commitment to the community. Vietcombank is dedicated to contributing to the creation of a sustainable Vietnam for future generations.

Source: Vietnam Business Forum