ESG can help make money.

Dr. Bui Thanh Minh - Deputy Director of the Office of the Private Economic Development Research Board (Board IV) - Photo: DT

Moving toward ESG can help businesses access green capital.

According to journalist Pham Tuan Anh, Editor-in-Chief of Dan Tri newspaper, the organizer of the seminar, we are living in an era where sustainable development is no longer an option, but a necessity. Businesses not only need to generate profits, but also must contribute positively to the environment and society, and have a transparent and effective governance system. That is the spirit of ESG – Environment, Society, and Governance.

Traditionally, corporate governance has been viewed as an expense for businesses.

However, many now argue that ESG-oriented corporate governance can be a factor in generating profits, because if done well, businesses can not only reduce costs but also build sustainable profits.

Dr. Bui Thanh Minh - Deputy Director of the Office of the Private Economic Development Research Board (Board IV) shared that global ESG practices put pressure on Vietnamese businesses. However, ESG is a global trend. Moving towards ESG can help businesses access green capital – which, while not cheap, is medium- and long-term capital.

ESG is a tool for more effective management and generating revenue.

Assoc. Prof. Dr. Nguyen Duc Trung - Rector of the University of Banking Ho Chi Minh City - Photo: DT

Associate Professor Dr. Nguyen Duc Trung - Rector of the University of Banking Ho Chi Minh City - stated that money is one of the crucial issues in implementing ESG. Even more important is the amount of money and whether the cash flow reaches the right destination. Cost management is something business owners need to pay attention to.

For example, at the Ho Chi Minh City University of Banking, the administration considered clean energy and installed air conditioners using solar panels. Thanks to solar power, they can use the air conditioners freely, saving costs.

"The ESG narrative is that it's a tool for more effective management, generating revenue, not just managing costs," Mr. Trung emphasized.

To manage businesses according to ESG principles, Dr. Bui Thanh Minh stated that there are many differing opinions on ESG practices. First, it is necessary to analyze the business model, the impact, and the purpose of ESG implementation.

If implementing ESG to expand the market, one can learn from pioneering businesses and conduct research beforehand to see how they do it. The report must present the data in a way that is convincing to investors, buyers, customers, shareholders, etc.

However, Vietnamese businesses often use the "AC" method, also known as estimation, so when problems arise, they don't know where the problem lies.

"Vietnamese businesses still face many difficulties, so every penny spent must be carefully considered. First, businesses must comply with the law, and then they must think about integration. When they see a big problem, everyone can share resources and work together in communication."

"We should adapt to our resources and implement what we have, as long as we don't overstate what we can do," Mr. Minh added.

Source: https://tuoitre.vn/esg-co-the-giup-tao-ra-tien-2024082918280226.htm