Innovation linked to ESG – Sustainable Business

On October 25, in Ho Chi Minh City, the Agency for Technology Entrepreneurship and Commercialization Development (NATEC) coordinated with the Management and Sustainable Development Research Institute (MSD) - United Way Vietnam, TECHFEST 2023 Social Open Innovation Village, Asian Development Bank (ADB) and Open Innovation and Technology Entrepreneurs Institute (OITI) to organize the Workshop "Innovation linked to ESG - Sustainable Business".

The workshop is financially supported by Shinhan Square Bridge Vietnam and is an event within Open Innovation Day 2023. The event promotes ESG exchanges globally and in Vietnam, sharing good practices of businesses in the open innovation ecosystem towards the United Nations Sustainable Development Goals, creating social impact, for the community.

ESG, which stands for Environmental, Social, and Governance, is becoming an integral part of the business model of businesses. This affects not only how businesses are managed, but also how they interact with society and the environment. Based on ESG principles, in addition to profit, businesses need to ensure that their business model is implemented sustainably, treat employees and communities fairly, and protect the environment. ESG is not only about business ethics but also about long-term survival and growth. Investors, both individuals and organizations, are increasingly focusing on ESG when evaluating investment opportunities and managing risks.

Therefore, the workshop “Innovation linked to ESG – Sustainable Business” – the opening event for Open Innovation Day 2023 – was organized to discuss and promote cooperation between stakeholders on testing, orientation and solutions to build an integrated management model with ESG factors. In addition, the workshop is also a place to orient and answer questions about opportunities and challenges in implementing ESG for businesses. Through discussions on ESG, many practical and specific activities towards encouraging the development of sustainable business trends are expected.

The workshop was honored to have the participation of Mr. Pham Hong Quat, Director of NATEC, Ministry of Science & Technology; Mr. Sun Sukkun, Project Director, Shinhan Square Bridge, Shinhan Financial Group Hope Fund; Mr. Sung Sup Ra, Deputy General Director and Deputy Team Leader, ADB General Director's Office and Team Leader, Field Team; Ms. Nguyen Phuong Linh, Director of MSD United Way Vietnam, Head of Open Society Innovation Village; Ms. Nguyen Cam Phuong, General Director of Saigon Telecommunication Technology Joint Stock Company; Mr. Nguyen Hoang Nam, Deputy General Director, Head of ESG Services - Audit Services, PwC Vietnam; and ESG experts, representatives of enterprises and more than 300 delegates attending.

In his opening speech at the workshop, Mr. Pham Hong Quat, Director of NATEC, gave directions for promoting Open Innovation and Sustainable Business in Vietnam. Mr. Quat shared the state's policy on developing sustainable business models, and affirmed the role of startups and young people in Vietnam's economy in the national innovation and startup development strategy. In particular, to promote the potential of National Innovation, food technology, smart agriculture, environmental protection technology, AI applications, etc. play a very important role in both creating economic leverage and contributing to sustainable development. He said that this is an opportunity to discuss and share opportunities and challenges in green transformation and digital transformation for all stakeholders, especially young entrepreneurs. Mr. Pham Hong Quat said: "I hope local leaders, incubators, and training facilities will connect and exploit as much as possible the experts who carry within them a wealth of useful knowledge, insights, and advice for Vietnam."

ESG principles are at the forefront of global conversation, highlighting the importance of responsible and sustainable business practices in the long term. The Vietnamese market is witnessing a growing awareness of ESG and its potential to drive positive and sustainable change in various sectors. In his welcome overview, Mr. Sung Sup Ra, Deputy Director General and Deputy Team Leader, ADB Office of the Director General and Team Leader, Sector Team, shared his insights on the challenges facing the innovation ecosystem in Vietnam and outlined key approaches to successfully foster innovation, such as comprehensive cooperation between the government, businesses, civil society, and institutions, etc.

Mr. Sung Sup Ra – Deputy Director General and Deputy Team Leader, Office of the ADB Director General and Team Leader, Sector Team delivered the welcome overview remarks
In Vietnam, Shinhan Square Bridge Vietnam is one of the pioneering experimental models that utilizes innovative technology solutions provided by cross-border startups to help citizens connect with available resources and new opportunities for future success. At the same time, the project also supports startups to grow in scale and develop sustainably. Mr. Sun Sukkun - Director of Shinhan Square Bridge project, Shinhan Financial Group shared about Shinhan Financial Group's efforts in solving social issues, while supporting startups to participate in the open innovation model, with RE:harvest being a typical successful example in the Living Lab model being implemented within the framework of the Shinhan Square Bridge project in Vietnam.

Ms. Nguyen Phuong Linh, Director of the MSD Institute for Sustainable Development Management - United Way Vietnam, head of the Techfest Social Open Innovation Village, shared that ESG has now become a trend and a long-term solution to create sustainable development for businesses. She noted that ESG has at least 2 factors: Social and Environmental, which are broad concepts beyond the control and efforts of businesses. Therefore, establishing cooperative relationships between diverse stakeholders to work with businesses to solve problems and promote ESG is extremely necessary. In addition to traditional relationships, Ms. Linh suggested that businesses should cooperate with NGO partners, institutes, and community groups so that ESG can be implemented practically and effectively. The open innovation approach will be the solution, the approach that opens the door for businesses to not only close the door to solve their own problems but also take advantage of innovation, initiatives and unlimited resources from stakeholders, investors, businesses, startups, institutes, social organizations, international organizations, in addition to the policy support of the state, etc. Ms. Linh shared: "Don't think ESG is just a beautiful word, a slogan or an effort for businesses to beautify the reports sent to investors and customers, if implemented seriously, ESG is a solution to connect in the sustainable business strategy of the business. Don't wait to become a big business to invest in ESG, but invest in ESG to grow."

The event includes two subsequent panel discussions on Open Innovation Orientation between Government and Enterprises and Multilateral Cooperation in ESG Practice in the Open Innovation Ecosystem with leading national and international speakers.

Speakers attending the panel discussion 2: Driving sustainable progress: Open innovation meets ESG practices. From left to right: Mr. Ho Anh Tung - Representative of SAIGONTEL Green Growth Alliance, Country Director of Allotrope Partners Vietnam; Mr. Nguyen Hoang Nam - Deputy General Director, ESG Services Leader - Audit Services, PwC Vietnam; Mr. Ho Viet Hai - Co-founder & Business Director, Alternō (moderator); Ms. Nguyen Phuong Linh - Director of the Institute for Management and Sustainable Development (MSD) - United Way Vietnam; Mr. Gil Yehiel Shaki - Founder of InnoValue and Growth Director at Capital Nature (Israel Embassy), Former Senior Director of Energy, Sustainability & Infrastructure at the Israel Innovation Authority (IIA)

The workshop ended with the message: Multi-sectoral and multi-sectoral solidarity and cooperation, the spirit of Open Social Innovation following the trend of practicing ESG principles are prerequisites for sustainable business, while ensuring the resolution of social challenges for sustainable development. Let's continue to accompany Open Innovation Day 2023 on October 25-26, 2023 to explore aspects of more specific fields in the Open Innovation ecosystem and learn about the contributions and mutual impacts of the subjects, towards a sustainable and developed Vietnamese economy.

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