Response to Climate Change: Key to Sustainable Development

The Sustainability Leaders Summit 2025, themed “Reinvent today, shape tomorrow,” was recently held in Ho Chi Minh City, bringing together experts and leaders from market-leading businesses to discuss and seek solutions to help businesses overcome challenges in the fight against climate change, while changing creative thinking and building a solid foundation to confidently move towards growth and sustainable development.

Overview of the Sustainability Leaders Summit 2025

According to the British Meteorological Office (Met Office), 2025 is predicted to be one of the three hottest years, with global average temperatures likely to rise by 1.29 to 1.53 degrees Celsius above pre-industrial levels. The severity of climate change is increasing and threatening all economies worldwide.

According to Swiss Re (Swiss Reinsurance Company), global economic losses from natural disasters (such as storms, floods, droughts and forest fires) in recent years have amounted to about US$300 billion per year. The World Bank also warned that, without effective action to mitigate the impact of climate change, losses due to natural disasters could account for 2-3% of global GDP each year by mid-century. Vietnam is one of the most vulnerable countries to climate change. Its economic damage from extreme storms in 2024, especially Typhoon Yagi, caused an estimated damage nearly 10 times that of 2023.

“Climate change not only affects families and individuals but also negatively affects businesses and society as a whole. As climate change is seriously threatening human development and the global economy, sustainability principles are more important than ever. However, no country can solve the issue of climate change alone; there is a need for global cooperation to promote comprehensive solutions to respond to climate change and build a safer and more sustainable future,” said Mr. Patrick Haverman, Deputy Resident Representative of UNDP Vietnam.

On the other hand, although climate change has a huge impact on the economy, it can also be a driving force to foster investment and transform growth toward a greener economy for countries, he said. In addition, climate change brings opportunities to stimulate smarter development, promote policymaking and encourage investment in green infrastructure systems.

“Vietnam is very serious about sustainable development goals with specific actions to realize Net Zero commitments. Sustainable development is not a matter of doing it if you like it or not. We need to see this as a task but also an opportunity for countries,” he emphasized.

At the panel session “Extended Producer Responsibility (EPR): Leading the Change,” experts and senior leaders discussed solutions to limit climate change impacts and foster the circular economy, including solutions to transform the way products and waste are managed. According to the EPR regulations, manufacturers and importers of electrical and electronic products will be responsible for recycling from January 1, 2025, while manufacturers and importers of vehicles (automobiles and motorcycles) will be responsible for recycling from January 1, 2027.

“EPR requires manufacturers and importers to be environmentally responsible throughout the product life cycle, from design and production to consumption and disposal. That is why we need to prioritize promoting EPR action programs because EPR not only helps companies develop green production and join hands to protect the environment, but also helps them make significant changes to open up new business opportunities,” said Mr. Pham Hong Diep, Chairman of the Board of Directors of Shinec Joint Stock Company.

At the panel session “Innovation and Technology: Driving the Future Economy,” experts and business leaders underlined the importance of innovative technology in sustainable development, helping transform the economy from a linear model (take, make and dispose) to a circular model, where resources are protected and used more sustainably. For example, AI and IoT support optimizing used resources from production and transportation to consumption. In addition, sustainable production, renewable energy and sustainable transportation will also help businesses reduce carbon emissions into the environment and enhance sustainability in transportation.

Proving that renewable energy and smart production have opened up sustainable development opportunities for businesses and the community, Mr. Le Hoang Minh, Production Operations Director and Head of the Net Zero Project at Vinamilk, demonstrated this statement through Vinamilk’s practical production processes. Specifically, the integration of energy and technology in production has brought positive effects to Vinamilk's chain of operations, he added. Currently, this leading dairy firm has completed digitalizing its business operations, helping reduce paper consumption by up to 95%.

“With the commitment to Net Zero by 2050, Vinamilk has been offering effective solutions to reduce greenhouse gas emissions, from fostering digital transformation to using green energy sources and optimizing production processes. Through these efforts, Vinamilk not only improves productivity but also significantly reduces energy consumption while accelerating its roadmap to reduce its carbon footprint. This is also how Vinamilk collaborates with the Government to realize the Net Zero commitment toward a greener and more sustainable future for ourselves and future generations,” he emphasized.

By My Chau, Vietnam Business Forum