ESG adoption may be crucial for growth

June 05, 2024 | 17:22
(0) user say
The implementation of environmental, social, and governance (ESG) policies will bring long-term value to businesses and increase their competitive advantage, according to Patrick Haverman, deputy resident representative of the United Nations Development Programme (UNDP) in Vietnam.

At a conference on ESG adoption on May 23, organised by VIR in collaboration with WBS Solution and System Co., Ltd, Haverman assessed Vietnam’s economy to have a high level of openness with its export-oriented approach being a key pillar for growth.

"However, with economic development being driven by exports, the concern is we could soon face sustainable development challenges, especially as major import markets like the United States and EU increase strict ESG requirements for suppliers," Haverman said.

Patrick Haverman, deputy resident representative United Nations Development Programme (UNDP) in Vietnam.
Patrick Haverman, deputy resident representative for the UNDP in Vietnam

According to data from the Ministry of Planning and Investment, small and medium-sized enterprises account for 98 per cent of the country’s total private businesses. As a result, accessing capital to fund ESG investment remains one of the most enduring challenges. However, according to a representative from UNDP, credit support channels for ESG are becoming increasingly more accessible, enabling businesses to access financial services and overseas funds.

Nguyen Thi Quynh Nhu, CEO of WBS and operations director of RIS.ER 24, said, "Implementing and managing ESG solutions is an ongoing process that requires dedication, collaboration, and a commitment to deliver positive impact. It is essential to tailor the approach to the specific needs and goals of your organisation, while remaining flexible to address the evolving challenges and trends in ESG."

ESG adoption may be crucial for growth
Quynh Nhu, CEO WBS (middle), speaks with Le Trong Minh, editor-in-chief of VIR (left) and Janice Tran, a representative from the US Embassy in Vietnam (right)

RIS.ER24 is a series of events organised from now until the end of the year, with the aim of creating a forum for multi-sector dialogue where insights from experts and business leaders who have already adopted ESG can be heard.

The next workshop in the RIS.ER24 programme will be held in Ho Chi Minh City in July, with the final date yet to be confirmed. The workshop is expected to focus on alleviating the recycling burden for companies in the plastics, electronics, battery manufacturing, textiles, paper, and packaging industries. The workshop aims to provide opportunities for businesses to access financial resources to support their green transition and sustainable development processes.

"Through the RIS.ER24 series of events, WBS is connecting and unlocking trade opportunities for Vietnamese firms. We are also ready to facilitate international businesses seeking entry into the Vietnamese market. WBS will serve as a bridge for creating value chains between Vietnam and the world," said Quynh Nhu.

ESG paves way for sustainable growth ESG can help businesses improve their brand image and market position ESG is vital for exporters ESG standards fit for the country ESG adoption and implementation for prosperity Innovation props up ESG prospects Do businesses have to suffer losses from ESG practices?

By Thai An

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional