ESG considerations light the path for SABECO’s success

Talking to VIR on how the brewer, known as SABECO, applies environmental, social, and governance (ESG) factors, general director Lester Tan said, “We would love to take on ESG aspects throughout the entire company. ThaiBev, of which we are a leading unit, has built a robust ESG roadmap within five years, which we strive to adhere to.”

SABECO installs rooftop solar, systems across its breweries in Vietnam

SABECO established a Sustainability and Risk Management Committee last year to support the board of directors in effectively implementing ESG initiatives and goals, under the risk advice of the Board of Directors and the Audit Committee, to ensure the rights of both investors and shareholders.

Given great opportunities such as golden population structure, rapidly increasing income, economic recovery, and consumption, as well as considering the tightening of policies and global forecasts in 2024, SABECO set a target of net revenues of nearly $1.4 billion, including $187 million in net profits. These are an increase of 13 and 8 per cent, respectively, compared to 2023.

“Three key areas are optimising commercial activities, supply chain efficiency, and ESG, which continue to be pillars of the company’s contributions to achieving the goals set forth,” Tan explained.

Initiatives to use alternative energy in production and business have been expanded to save electricity use (reduced by 25 million kWh), and cutting down 18,000 tonnes of carbon emissions.

ESG initiatives and actions for corporate social responsibility have already been recognised, including being named an outstanding enterprise for labour, and listed in the Top 100 Corporate Sustainability Index, Top 20 Best Annual Reports, and Top 50 Listed Companies, among others.

The business has taken more actions to lessen its impact on the environment. General director Tan noted that as a large brewer, water is one of the most important input materials in the company’s production and business activities. Therefore, preserving and conserving water resources is one of SABECO’s major goals.

One of these is advocating for ongoing reductions in water usage; in 2023 less than three litres of water was used for every litre of beer produced, down from five litres in 2018.

SABECO is also installing rooftop solar panels in all factories, and five more factories will use solar energy this year. Initiatives to use alternative energy in production and business have been expanded to save electricity, reduced by 25 million kWh, and cutting 18,000 tonnes of carbon emissions.

The Vietnamese government has implemented stricter measures for businesses in an effort to achieve green growth and net-zero emissions. These measures include modifications to the Environmental Protection Law, a higher tax rate on environmental protection, and the recent release of extended producer responsibility regulations, which hold manufacturers accountable for the entire life cycle of every product they sell.

Bia Saigon and VietFootball kick off Seven-A-Side National Championship 2024 The Bia Saigon Seven-A-Side National Championship, or Bia Saigon Cup 2024, kicked off on May 8. This is the third year that SABECO's Bia Saigon has been the main sponsor of the competition to promote the development of seven-a-side football in Vietnam.

SABECO and Ho Chi Minh Communist Youth Union extend outreach partnership The Ho Chi Minh Communist Youth Union and Saigon Beer-Alcohol-Beverage Corporation signed aN MoU on June 5, to extend an initiative that will focus on Climate, Community Empowerment, and Sports and Public Health over the next three years, to benefit the community and society.