Encouraging green business development - Removing difficulties in accessing standards

Businesses do not clearly understand related policies

In the context of globalization and increasing demands for environmental protection, digital transformation and green transformation are becoming two important directions, helping Vietnamese enterprises increase their competitiveness and develop sustainably. According to Fortune Business Insights, the global green technology and sustainable development market could reach 61.92 billion USD by 2030, opening up great opportunities for Vietnamese enterprises to participate in the global supply chain. Applying ESG to business operations is also part of the national commitment to achieving a net zero emission target by 2050. However, the current situation shows that many Vietnamese enterprises are still facing difficulties in accessing and applying ESG standards (environment, society, governance).

Applying ESG to business operations is an inevitable trend for businesses to achieve sustainable development goals. (Illustration: Vietq.vn)

According to the ESG Practice Assessment Report 2024, of the 1,019 surveyed enterprises, up to 39% have never heard of ESG and 62% do not fully understand the relevant regulations and policies. This reflects the large gap between Vietnamese enterprises and the global sustainable development trend. Accordingly, the three main obstacles that Vietnamese enterprises face when applying ESG are lack of information, lack of training programs and lack of specific policies from the Government. Many enterprises have not yet fully realized the benefits of ESG, as well as the need to combine digital and green transformation at the same time.

According to experts, to successfully implement digital-green transformation, businesses first need to assess their technological readiness and ability to meet ESG standards. This helps to clearly identify strengths, weaknesses, opportunities and challenges.

Businesses should set specific strategic goals such as reducing emissions, improving energy efficiency, building a green supply chain, and integrating international standards into their business strategy. After the assessment, businesses need to build a clear roadmap with specific projects, ensuring that digital transformation is accompanied by ESG goals, from using renewable energy, improving production to waste management. Training is also important for employees to understand and apply new technologies and participate in sustainable development initiatives.

Need to standardize guidance on applying ESG standards

The Department of Private Enterprise and Collective Economic Development (APED), Ministry of Finance has published guidelines on the ESG implementation and reporting framework specifically for three sectors: finance, real estate - construction and manufacturing. These are all sectors that need to prioritize ESG implementation due to the urgency of sustainable transformation, with large contributions to economic activities (such as exports, lending), large impacts on the environment (such as greenhouse gas emissions, water use, waste discharge, etc.) and on society (such as labor utilization levels, occupational safety issues, etc.).

Through this document, businesses can access guidelines, reference practices and reference sources to incorporate ESG factors into their governance and operational strategies, thereby helping businesses respond to risks and take advantage of opportunities related to sustainable development, helping businesses improve their capacity to disclose sustainable development information to ensure compliance with legal requirements and leading domestic and international ESG practices; at the same time, minimize risks and take advantage of opportunities that ESG brings, especially access to green financial resources.

For the green-digital transformation to be truly effective, what is urgently needed now is a standardized, accessible, and tailored ESG guidance system for businesses. The issuance of sector-specific ESG handbooks, as in the case of the three priority sectors mentioned above, is a step in the right direction. However, it is necessary to continue expanding the scope of application to other economic sectors such as agriculture, logistics, textiles, information technology, etc. to support more business groups.

In addition, it is necessary to strengthen practical ESG training programs with high applicability, combined with in-depth consulting courses, to support businesses in developing appropriate ESG strategies. In addition, integrating ESG indicators into the credit rating system and financial approval criteria of credit institutions will contribute to creating stronger motivation for businesses towards sustainable development.

In the long term, standardizing ESG practice guidelines will not only help businesses comply with international requirements more easily, but also expand opportunities for cooperation, participation in global supply chains, access to green capital and contribute to the country's green economic transformation. This is an important foundation for Vietnamese businesses to both successfully integrate and develop sustainably in a world that is rapidly changing due to climate change and global green economic trends.

Do Trang

Source: https://baophapluat.vn/khuyen-khich-doanh-nghiep-phat-trien-xanh-go-kho-trong-viec-tiep-can-cac-tieu-chuan-post547923.html