Business leaders play a pioneering role in implementing ESG

DNHN - That is the assessment of Mr. Nguyễn Thanh Khiết – Chairman of the Right Management Institute NBO, in an interview with the Business and Integration Magazine on this issue.

Could you please share your thoughts on sustainable development and the importance of ESG for businesses in the current context?

Mr. Nguyễn Thanh Khiết: Currently, sustainable development is not just a theoretical concept but has become a practical requirement for businesses. ESG, short for Environmental, Social, and Governance, is an important set of criteria. These criteria not only help companies focus on profitability but also ensure their long-term and sustainable development. Environmental, social, and governance factors help create added value while enhancing the company’s reputation in the market. This is becoming increasingly necessary as investors and customers pay more attention to the social and environmental impacts that businesses bring.

In more detail, the environmental factor requires businesses to take responsibility for the environment around them. This can include reducing emissions or efficiently managing the resources they use.

The social factor relates to the welfare of employees, customers, and the surrounding community.

As for governance, businesses need to have a clear, transparent, and accountable integrated management system.

All of the above factors play an important role in building a business that is not only financially strong but also has a positive impact on society and the environment, ensuring effective and sustainable development.

In your opinion, to what extent have Vietnamese businesses implemented ESG, and what challenges are they facing?

Mr. Nguyễn Thanh Khiết: Many Vietnamese businesses have begun the process of implementing ESG-related activities, but the level of implementation is still uneven. Some large companies have made significant strides in this process, while many small and medium-sized enterprises still face difficulties in understanding and integrating ESG into their business strategies. The main challenges are a lack of awareness and necessary resources, as well as policy support. Additionally, changing corporate culture to meet new requirements is a major barrier.

In your view, what role do business leaders play in promoting ESG?

Mr. Nguyễn Thanh Khiết: Business leaders are the ones who set the strategic direction for the company, so they play a pioneering role in implementing ESG. They not only need to commit strategically but also create a positive environment, encouraging employees to participate in sustainable activities. In particular, leaders must set an example by adhering to ESG standards, thereby fostering a positive and sustainable corporate culture.

What activities has the Right Management Institute NBO undertaken to support businesses in implementing ESG?

Mr. Nguyễn Thanh Khiết: At the Right Management Institute NBO, we have launched many consulting and specialized training programs on ESG. We provide solutions to help businesses assess their environmental and social impacts, and from there, offer feedback and improvement measures. Additionally, we organize seminars and connection programs that bring together experts and businesses to discuss and share experiences in applying ESG in practice.

Could you give a specific example of a business that has successfully applied ESG with the support of the NBO Institute?

Mr. Nguyễn Thanh Khiết: A typical example is a manufacturing company that the NBO Institute supported in improving its production process to become more environmentally friendly. We helped them reduce emissions and optimize energy usage. The results were not only a positive impact on the environment but also operational cost savings and an enhanced brand image in the eyes of partners and customers. NBO also conducts training courses, consultancy activities on the Integrated Management System, and the Strategic Map of 18 Factors (Starting from customer issues).

What is your outlook on the future of ESG trends in Vietnam?

Mr. Nguyễn Thanh Khiết: I believe that in the future, ESG will become a necessary criterion for businesses, not only in Vietnam but globally. Increased awareness of environmental protection, social welfare, and transparent governance will push businesses to invest in ESG initiatives. Government policies will also increasingly support sustainable development, creating favorable conditions for businesses to implement ESG.

After COVID-19, what should businesses focus on in sustainable development based on ESG?

Mr. Nguyễn Thanh Khiết: After COVID-19, many businesses have realized the importance of building sustainable supply chains and being resilient to crises. ESG is not only a solution for long-term development but also a factor that helps businesses withstand and recover from market shocks. Businesses need to restructure, pay more attention to employee welfare, ensure transparency in governance, and especially minimize negative environmental impacts.

Do you have any advice for young entrepreneurs when starting to apply ESG in business operations?

Mr. Nguyễn Thanh Khiết: My advice for young entrepreneurs is to be persistent and start with small but meaningful changes. Build a solid and transparent governance foundation. Next, seek innovative solutions to reduce environmental impacts and increase the social value of the business. Implementing ESG takes time and effort, but it will be a solid foundation for sustainable development in the future.

In your opinion, what policies should the government put in place to effectively promote ESG in Vietnam?

Mr. Nguyễn Thanh Khiết: The government needs to establish clear and specific policies to encourage businesses to implement ESG. These could include tax incentives for companies that pioneer in reducing emissions or provide financial support for projects related to environmental protection and community development. Furthermore, raising education and awareness about ESG in the business community is also crucial to help companies more easily implement sustainable strategies.

Thank you for your insights!

An Thao