ESG is the bridge for businesses to grow quickly and sustainably

ESG is the bridge connecting fast growth and sustainable growth

Sharing at the workshop "Digital transformation solutions and ESG practices - Key towards global economic integration" organized by Dan Tri newspaper on the morning of June 24, Mr. Sam Hanna - CEO and Vice President of Strategy ASEAN Shell Global Lubricants - especially emphasized the role of ESG in the new context of the world economy and Vietnam.

Mr. Sam Hanna is responsible for establishing and implementing ESG strategy in Southeast Asia and is also the Director of the EMBA program at the School of Management (SOM), Asian Institute of Technology (AIT).

Citing data from the McKinsey research organization, Mr. Sam Hanna said that Asia is playing an increasingly large role in global trade. Accordingly, Asia Pacific accounts for 60% of merchandise trade, 59% of capital, 55% of freight transport in the world with an average value of the past 10 years. It is forecasted that by 2050, 52% of the world's GDP will come from Asia Pacific.

“Asia is facing great opportunities and Vietnam is at a decisive moment,” Mr. Sam Hanna emphasized.

More specifically, this expert cited data showing that Vietnam's GDP growth is among the fastest in Asia at 7.8% in 2023. Vietnam has also emerged as a destination for global investment flows, attracting 31.9 billion USD in FDI in 2023. Vietnam is also among the 20 countries that are rising to expand their global economic position.

Expert Sam Hanna said that Vietnam is also facing a decisive moment with two dual requirements of rapid growth and sustainable growth. “However, these two goals are not mutually exclusive. ESG will be the bridge to connect these two requirements,” the CEO and Vice President of Strategy ASEAN Shell Global Lubricants emphasized.

ESG is a business mindset

He also clarified the definition of ESG, which many people still find vague. ESG is really a business mindset, not just a report. For example, the concept of CSR refers to corporate social responsibility and is voluntary.

Meanwhile, ESG is a more structured framework based on three main pillars: environment, society and governance. ESG will help businesses make better decisions and better strategies.

However, Mr. Sam Hanna said that Vietnamese companies are facing many challenges when practicing ESG. 80% of businesses have committed or have plans to implement ESG, but up to 34% of businesses do not have an ESG program. For large businesses, only 15% of businesses have full ESG reports. 76% of businesses lack an ESG governance structure regarding roles, responsibilities or monitoring mechanisms.

In the new context of global transformation, ESG implementation is no longer an option but has become a mandatory strategy for businesses. In fact, Vietnam has had many businesses successfully implementing ESG and achieving business results such as in the wood export, banking, and transportation industries.

Mr. Sam Hanna shares 5 steps to help businesses easily embed ESG into their business platform.

First, businesses need to determine the materiality of ESG. Businesses need to identify important ESG factors related to business operations as well as shareholders.

The second is to integrate ESG factors into key decisions, embedding them into the specific business strategy of the enterprise.

Third is measurement and management through a clear data and index system to monitor implementation results.

Fourth is innovation for sustainable development, businesses need to create products and processes to solve environmental challenges.

Fifth is to have specific commitments to shareholders, communities and regulators.

The ESG Vietnam Forum 2025 with the theme "Science and technology and driving force for sustainable development" will be a place to exchange and discuss important issues such as: How can businesses apply science and technology to improve the environment and limit negative impacts on the environment?

How can businesses solve social problems such as poverty reduction, improving the quality of education and health care, and creating sustainable employment opportunities? How can science and technology enhance transparency, accountability, and governance efficiency?

The highlight of the Vietnam ESG Forum 2025 will be the Vietnam ESG Awards 2025 - a prestigious title honoring businesses that have made outstanding achievements in implementing ESG in science and technology towards sustainable development.

The organizers of the Vietnam ESG Forum believe that honoring businesses with good performance will inspire and motivate other businesses to act for a better future.

Source: https://dantri.com.vn/kinh-doanh/esg-la-cau-noi-de-doanh-nghiep-tang-truong-nhanh-va-ben-vung-20250624105827977.htm