“Green to Grow”: ESG Is Not Just for Polishing Corporate Profiles

Sustainable development is no longer a distant future concept. Early adoption of ESG practices is becoming a foundation for enhancing corporate competitiveness and long-term growth.

Struggling with Implementation

According to PwC’s 2025 report on the current state of ESG practices, based on a survey of 174 Vietnamese business representatives, as many as 89% of companies stated that they have either committed or plan to commit to ESG within the next 1–2 years. Notably, 61% of surveyed companies have already developed a formal ESG strategy and are gradually integrating ESG into their overall business strategy. In addition, 44% have implemented ESG initiatives aimed at directly creating business value, rather than merely complying with external requirements.

The ESG landscape still presents a mix of contrasting shades. Illustration.

These figures indicate that ESG is no longer an unfamiliar concept or a short-term trend, but is gradually becoming a strategic component of Vietnamese enterprises’ development journeys. However, when looking deeper into practical implementation, the ESG picture remains complex and fragmented. This raises an important question: is ESG implementation really as “easy” as the commitment figures suggest?

Speaking with Cong Thuong Newspaper, Ms. Nguy Thi Giang, Head of the ESG Committee of the Hanoi Association of Key Industrial Product Manufacturers (HAMI) and Chairwoman of GREEN IN, noted that in reality, many Vietnamese companies have been practicing ESG, but mostly at the level of corporate social responsibility (CSR). These activities are primarily concentrated on the “S” pillar – Social – such as community programs, employee welfare, and charitable initiatives.

While this is an important foundation, it is still insufficient to form a comprehensive ESG system. Many businesses struggle to systematize fragmented activities into an overarching strategy, let alone document them or develop ESG reports in a structured and professional manner.

In particular, practices related to the “E” (Environmental) and “G” (Governance) pillars remain relatively weak. Ironically, these two pillars play a decisive role in strengthening competitiveness, especially for companies that already have a solid social foundation. Greenhouse gas inventory, carbon footprint management, risk governance, information transparency, and internal monitoring mechanisms continue to be major bottlenecks for many enterprises.

Moreover, a wide range of ESG standards and reporting frameworks exist globally, yet Vietnamese enterprises’ awareness and accessibility to these standards remain limited. This highlights that beyond commitment and awareness, businesses urgently need clearer guidance, appropriate tools, and systematic support to implement ESG effectively and sustainably.

“Green to Grow,” Not “Grow First, Then Go Green”

In the context of deep global integration, pressure on enterprises to demonstrate ESG compliance is increasing rapidly. From transparency in raw material sourcing and labor conditions to emissions control and environmental responsibility, ESG is gradually becoming a mandatory “passport” for businesses seeking to join multinational supply chains and enter demanding markets.

To date, more than 35 countries have committed to and enacted ESG disclosure regulations, including major markets such as Europe, Japan, and South Korea. Around 140 countries have committed to Net Zero targets, 186 countries are parties to the Stockholm Convention on hazardous chemicals, and more than 130 countries have specific consumer protection laws. “This means Vietnamese enterprises must comply with the ‘common rules of the game’ if they want to survive and develop sustainably within global supply chains,” Ms. Giang emphasized.

In practice, many Vietnamese companies have begun implementing initiatives related to the “E” pillar, such as measuring and managing product carbon emissions, meeting environmental criteria, and complying with environmental regulations. These concrete actions reflect businesses’ proactive adaptation to evolving market demands.

“During our advisory and support work with companies on ESG implementation, HAMI frequently receives familiar questions such as: ‘Where should we start?’, ‘How should ESG be practiced?’, or ‘What should the implementation roadmap look like?’” Ms. Giang shared.

Based on practical experience, HAMI experts propose two common ESG implementation roadmaps, tailored to different business conditions and levels of readiness.

The first is a comprehensive roadmap, consisting of five core steps: assessing the current ESG status; developing an ESG strategy; building an action plan; implementing specific actions; and preparing an ESG report. This structured approach is suitable for enterprises that view ESG as an integral part of their long-term development strategy and aim to create sustainable value.

The second is a flexible roadmap, designed for companies under short-term pressure to produce ESG reports. This approach also begins with an ESG assessment to identify the current position, strengths, and areas for improvement, but then focuses primarily on preparing ESG reports to meet regulatory requirements, supply chain partner demands, or customer expectations. This pragmatic approach helps businesses address immediate compliance needs while gradually strengthening ESG practices over the long term.

Depending on scale, resources, and urgency, enterprises can choose the most suitable roadmap to build ESG capacity step by step. According to Ms. Giang, businesses should not wait until they are large enough to think about sustainability, but instead should “go green in order to grow.” ESG is no longer a cosmetic option or a tool to simply embellish corporate profiles. Nor is it a temporary solution to access a specific market or partner.

In essence, ESG is a passport that enables businesses to participate, remain resilient, and enhance their standing within global supply chains. As enterprises face mounting challenges—from market volatility and compliance costs to increasingly stringent partner requirements—ESG represents both pressure and opportunity for restructuring and improving competitiveness.

Notably, the government’s issuance of key resolutions such as Resolutions 57, 59, 66, and 68 has created policy space and favorable conditions for enterprises to transform development models, strengthen governance capabilities, and expand their reach in the coming period.

Understanding the core aspects of ESG—from its role and business value to widely adopted global standards—is not only a requirement for leadership, but also a critical foundation for internal teams and experts to provide timely advice, enabling businesses to proactively adapt and achieve sustainable growth.