Most businesses aware of ESG: report

Phan Dang Bao, deputy director general of Lam Tran Plastic Recycling

In a talk with VIR at a conference themed ESG - Motivations and Breakthroughs, Phan Dang Bao, deputy director general at Lam Tran Plastic Recycling, said that the company not only highlights recycling of soft plastic packaging but is also strongly committed to the principles of environment, society, and governance (ESG).

"We not only aim to reduce plastic waste, but also utilise opportunities to create sustainable solutions, develop communities, and promote good governance in all business activities," he stated.

Since its establishment, Lam Tran has been adopting sustainable solutions and improving product quality to optimise and protect resources. Lam Tran's output of recycled materials is estimated at about 1,000 tonnes per month, which is converted from about 2,000 tonnes of soft plastic waste, including plastic bags and food packaging. Our monthly collection covers about 12 million square meters, about 1.5 times the size of District 1.

However, collection and classification of soft plastic waste in Vietnam remain limited, he said. "There is still no standard or method of collection and classification at source. To ensure the quality of raw input materials, we need standards for input scrap sources and a domestic collection and classification team, going to each collection point to check, evaluate, and propose the most effective solutions," Bao said.

"We hope to receive more support to develop collection and classification facilities. The application of extended producer responsibility (EPR) regulations this year will be a stepping stone, and a driving force to promote recycling and reduce plastic waste in Vietnam towards sustainable development," he emphasised.

Bui Thu Thuy, deputy director general of the Agency for Enterprise Development

Bui Thu Thuy, deputy director general of the Agency for Enterprise Development under the Ministry of Planning and Investment (MPI), said that 80-90 per cent of businesses have some awareness of ESG practices, but are unsure how to implement them.

"The National Strategy on Green Growth, and Action Plan on Green Growth have been issued, but we need to point out specifically how to effect and achieve these goals and net zero by 2050. We need guidelines for individuals and businesses to refer to," Thuy urged.

"Members of the public are already aware of this. For example, they are switching from Grab to Xanh SM because Xanh SM uses e-cars and bikes with less carbon emissions," she added.

Among the three factors, 'governance' is the hardest for businesses to improve because most Vietnamese enterprises are small, micro, or household scale, so employees have multiple tasks and positions. "This makes it hard to enhance their governance," Thuy said.

The MPI is drafting and submitting a green economic sub-sector plan to the prime minister, for example, in transportation, and building incentive policies to help enterprises implement ESG practices. These include support policies for VinFast to build charging stations. "The more charging stations there are, the more green cars and bikes people will use. Without support from the government, it will be a long road ahead to reach these goals," she said.

The MPI is working with international partners like USAID and UNDP to support enterprises. Specifically, over the last two years, these projects have already improved the awareness of about 10,000 firms, filtered 300 firms to improve capacity on inventory greenhouse gases, and built a roadmap to transit to sustainable business practices.

"The challenge is that most businesses do not have huge resources. Only foreign-invested enterprises, state-owned enterprises, and big firms can afford to pour money into ESG implementation," Thuy said.

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