ESG: The "E" hurdle in the wave of technological innovation for sustainable development.

(Dan Tri Newspaper) - Behind AI, blockchain, and digital infrastructure are increasingly large environmental footprints, forcing businesses to face the difficult ESG test: How to innovate technologically without sacrificing the "E" (environmental impact)?

The "E" test with a technological boost.

Science and technology are expected to help businesses measure, optimize, and accelerate green transformation. But technology itself can also create new environmental footprints: from electricity for data centers to energy-intensive blockchain models. The challenge is how to innovate without compromise.

This is also an issue that many members of the Vietnam ESG Awards 2025 Judging Panel are particularly interested in and have analyzed with great care.

Dr. Bui Thanh Minh commented that the criteria for the Vietnam ESG Awards are detailed and closely adhere to current ESG standards (Photo: Thanh Dong).

Dr. Bui Thanh Minh - Deputy Director of Professional Affairs, Office of the Private Economic Development Research Board (Board IV) - observes that "dual transformation" (green and digital) is becoming an international trend, and in Vietnam, this orientation is also linked to policies promoting science and technology and digital transformation.

But the more digitalization occurs, the greater the need for digital infrastructure, and the environment is the one that will ultimately "pay the energy bill" if businesses don't plan carefully.

In fact, the International Energy Agency (IEA) forecasts that global data center power consumption could surge, more than doubling by 2030 to around 945 TWh, with AI being a significant driver in this wave.

That figure reveals a paradox: businesses can make ESG "better" thanks to data, but can also make the "E" worse due to energy consumption, indirect emissions, and pressure on the power grid.

Blockchain is a prime example of that contradiction.

A balance needs to be struck between scientific and technological innovation and environmental protection (Photo: Getty).

At the Vietnam ESG Awards 2025 Judging Panel meeting held on December 9th, Associate Professor Dr. Ta Hai Tung - Rector of the School of Information Technology and Communications ( Hanoi University of Science and Technology) raised the issue: "Blockchain is a technology that consumes a lot of energy, therefore not every business is suitable to apply it."

In many cases, alternative solutions such as digital signatures can meet security needs while optimizing energy costs.

Mr. Vu Thanh Thang, Director of Artificial Intelligence at CAIO - Founder of SCS Cybersecurity Joint Stock Company (Photo: Thanh Dong).

Mr. Vu Thanh Thang - Director of Artificial Intelligence (CAIO), Founder of SCS Cybersecurity Joint Stock Company - shared a similar viewpoint.

He stated that in Vietnam, some businesses are developing blockchain platforms, but this technology has a drawback in the "E" aspect due to its high energy consumption. However, blockchain has the major advantage of not depending on third parties.

Scientific and technological innovation cannot be achieved at any cost.

Regarding the scoring criteria for the Vietnam ESG Awards 2025, a prominent point of consensus among experts is "measurement".

Dr. Le Thai Ha - Executive Director of VinFuture Fund and Executive Director of the Green Future Fund - believes that the science and technology category should be approached with a focus on technological solutions to address different aspects of the three pillars: Energy, Sustainable Development (E), and Growth (G).

Dr. Le Thai Ha - Executive Director of VinFuture Fund, Executive Director of the Green Future Fund (Photo: Thanh Dong).

Ms. Le Thai Ha emphasized the need to develop a specific and clear system of measurement criteria. For example, with pillar E, it is necessary to assess how the solution helps save energy or reduce emissions.

For pillar S, it's necessary to assess whether technology creates a more equitable work environment or enhances employee happiness. As for pillar G, it's crucial to consider how technology optimizes time and management efficiency.

Professor Nguyen Duc Khuong, from EMLV Business School, Director of International Development at De Vinci Higher Education, and Chairman of AVSE Global, stated that the criteria need to "measure actual impact" and assess the impact of businesses on their surrounding environment, including in supply chain and customer relationships.

Professor Mac Quoc Anh, Vice President and General Secretary of the Hanoi Small and Medium Enterprises Association, and Director of the Institute of Economics and Business Development, emphasized that scientific and technological innovation cannot be pursued at all costs.

According to him, when businesses apply scientific and technological advancements, environmental protection should be placed at the forefront, with the highest possible level of control and limitation of negative impacts.

Professor Mac Quoc Anh - Vice President and General Secretary of the Hanoi Small and Medium Enterprises Association, Director of the Institute of Economics and Business Development (Photo: Manh Quan).

Even though evaluation criteria are quantified by data, they still need to be balanced and harmonious, ensuring that technological innovation is closely linked to the goal of sustainable development.

According to experts, from an environmental perspective, measurement should not only focus on "outputs" but also on the "footprints" throughout the entire technology lifecycle: hardware, operating power, cooling, replacement, electronic waste, and even indirect emissions from using electricity from fossil fuels.

When businesses implement an AI or blockchain platform, the question to ask is: how much does this solution reduce in existing processes, while simultaneously generating additional energy consumption?

In an interview with Dan Tri newspaper, Dr. Pham Tam Long, a lecturer at the School of International Management - Ritsumeikan Asia Pacific University, Japan, stated that we are living in an era where the ESG (Sustainable Business) standards have become a key term. Everywhere you go, you hear about "green" and "sustainability."

From being a novelty, ESG is now prominently featured in mission statements. Tree-planting campaigns, efforts to reduce plastic waste, and community activities are being implemented on a large scale. These are encouraging signs, showing that awareness of social responsibility has begun to take root.

"However, if we look at it more deeply and rigorously according to international standards, it seems we are still focusing more on the 'symptoms' than on the 'roots'. There is an invisible but huge gap between doing good and operating a sustainable business model based on data (being sustainable)," said Dr. Long.

In Japan, the concept of "greenwashing" (creating an environmentally friendly image but without corresponding action) is being condemned and scrutinized more strictly than ever before.

The Japan Financial Services Agency (FSA) has begun tightening related supervisory regulations. In Japan, business culture often emphasizes the philosophy of "Honne" (feminine) and "Tatemae" (masculine). If "Tatemae" is what is outwardly displayed, social etiquette, then "Honne" is the truth, the genuine intention within.

Applying this to the ESG narrative, many businesses seem to be doing very well with the "Tatemae"—that is, the marketing facade with its appealing imagery.

But international partners, investment funds, and demanding markets like Europe and America are now looking for the "Honne." They are no longer convinced by flowery promises. What they need is authenticity derived from dry but honest numbers.

Europe erected barriers like CBAM (Carbon Border Adjustment Mechanism) or EUDR (Anti-Deforestation Regulation), and they don't care how many billions of Vietnamese dong your business has donated to charity.

Their only concern is: Can you prove with satellite data that this shipment doesn't cause deforestation? How much did you pay for the carbon emissions produced when making this shirt?

However, according to Dr. Long, challenges always present opportunities. The cleansing of the ESG market is also a time for businesses that truly deliver on their promises to shine.

"I believe Vietnamese businesses need to change their mindset: Stop viewing ESG as a cost burden or a publicity stunt. Instead, consider it an investment in governance infrastructure. Transparency, even if sometimes painful because it exposes weaknesses, can be the strongest shield," Dr. Long emphasized.

Choose the right strategy to achieve double conversion through technology.

Vietnam has set a target of net-zero emissions by 2050, meaning it must "move fast" but still "move correctly".

In fact, technology platforms are considered key to realizing grand visions of sustainable development. Among them, AI, Big Data, and the Internet of Things (IoT) are the crucial trio for businesses to achieve a double transformation (digital and green), ensuring optimal resource utilization – a vital element in the new era.

Compliance with ESG standards is gradually becoming a mandatory mechanism for participation in the international arena (Photo: GEP).

AI has developed tremendously, no longer merely providing support but gradually replacing humans in many specific tasks to maintain the three elements of Environment, Society, and Governance in a completely automated manner.

Pioneering businesses that apply technology to ESG are transforming from a cost burden into a breakthrough opportunity.

Ms. Do Thi Thu Phuong, Deputy Head of the Environmental Safety and Sustainable Development Department of the Vietnam National Energy Industry Group (PVN), cited that PVN is using technological solutions to address bottlenecks in collecting and standardizing ESG data, aiming to monitor and measure emissions and safety based on real-time data; thereby forecasting and making timely adjustments to strategies and business operations.

Ms. Phuong affirmed that ESG is considered by PVN as a sustainable development strategy and a driving force for upgrading corporate governance. Technology plays a central role, helping PVN measure, forecast, optimize, and increase transparency in ESG implementation, thereby transforming commitments into concrete actions, towards a green and sustainable energy future for Vietnam.

On the afternoon of December 22nd, the ESG Vietnam 2025 forum, organized by Dan Tri Newspaper, will take place in Hanoi.

The forum provided in-depth analysis and a comprehensive perspective on the role of technology in ESG implementation.

Within the framework of the program, the Vietnam ESG Awards 2025 ceremony will be a highlight, honoring pioneering and exemplary organizations and businesses in promoting sustainable development.

With the theme "Science and Technology as a Driving Force for Sustainable Development," the event aims to contribute to laying the foundation for a sustainable and prosperous future for Vietnam.

Interested readers can register to attend the seminar with two participation packages: Standard and VVIP, with limited spaces available.

Upon successful registration, the organizers will send your participation ticket via email, for your convenience in checking in for the program on December 22nd.

The benefits of the Standard tier (worth 500,000 VND) include a good seat, access to seminar materials, and event gifts.

The benefits of the VVIP package (VND 2,000,000) include VIP seating, a private dinner with the speaker at Pullman Hanoi, exclusive gifts, a private check-in area, and seminar materials from the organizers. Due to limited seating, registration may close earlier if all seats are filled.

Source: https://dantri.com.vn/cong-nghe/esg-cua-ai-chu-e-trong-lan-song-doi-moi-cong-nghe-de-phat-trien-ben-vung-20251216215931286.htm