Sustainability reporting is proving a compelling comparative advantage, helping firms to participate in the global supply chain while enhancing their competitiveness and promoting market entry.
|More local firms have been paying due regards to GRI sustainability reporting standards in the past years |
More and more local businesses, particularly listed firms, have engaged in drawing sustainable development reports in recent years. Aside from adhering to requirements regulated by the Ministry of Finance’s Circular No.155/2015/TT-BTC providing guidelines for information disclosure on the securities market about corporate impacts socially and environmentally, more and more local firms have been paying due regards to Global Reporting Initiative (GRI) sustainability reporting standards. This set of interrelated standards has been applied by more than 10,000 organisations, and GRI’s sustainability reporting database currently consists of more than 50,000 reports updated as of late 2019.
The attention towards sustainable development is expected to be steadily increasing both in Vietnam and worldwide this year. This requires businesses to change their mindset and pay more regard to corporate governance, striving for operational optimisation, in which sustainability reporting proves to be a useful tool.
|Sustainable development is expected to be steadily gaining the limelight both in Vietnam and across the world this year. |
A recent study by PwC, a global professional services firm, shows that sustainability reporting might deliver development vision, strategy, the advantages and disadvantages of businesses, from there helping firms identify remedy measures, while simultaneously stimulating their employees to strive for more noble goals. Sustainability reporting also helps firms establish reputation and trust among customers, as well as attract investment capital, and more.
A representative from Vietnam’s leading insurer Bao Viet Holdings – the top player in this regard in recent years – stated that sustainability reporting is a compelling governance and measurement tool which can bring long-term benefits to firms, helping them cultivate a strategic vision allied with contemporary development trends.
PAN Group, a listed firm having reaped diverse awards for sustainability reporting, shared that this work must be evident in the practical operations of businesses. Businesses, therefore, can optimise their operation, boost competitiveness in agriculture and export, as well as gear their supply chains towards more sustainable values. Specifically, good sustainable reporting can help firms improve their capacity to identify risks and bring fresh opportunities to businesses.
The success story of H&N Garment, which is doing a smart job with sustainability reporting, might be a good example for other firms. H&N Garment is a small firm and a supplier of clothing and uniform for renowned brewer Heineken Vietnam.
In fact, Heineken is a trailblazer in sustainable development, so that the company has applied specific criteria and sustainability requirements to their suppliers.
H&N Garment has succeeded in grasping sustainable development trends and surmounted national boundaries to reach the global market.
The above examples show that businesses are actively approaching GRI sustainability reporting standards and that this set of standards could help firms participate in the global value chains to boost their competitiveness.