Greening creates competitive and sustainable advantages for enterprises

The energy system is shifting from fossil to renewable. Photo: Internet

Advantages for enterprises

At the seminar "Journey Towards Sustainability and Carbon Neutrality in Production" on May 29, Mr. Dang Bui Khue, Creative Director, Sustainable Development Management and Second Party Assessment (Bureau Veritas Vietnam), said that manufacturing enterprises are under considerable pressure from global regulations such as the EU's Carbon Border Adjustment Mechanism (CBAM), which taxes carbon on imported goods, and the European Green Deal.

According to experts, digital transformation and green transformation are the two most important parallel transformations. To be green, enterprises must use digital technology; without it, rapid transformation is impossible. Without green technology, energy and resources will be wasted, and the earth will be destroyed.

Mr. Nguyen Van Khoa, Chairman of the Vietnam Software and IT Services Association, stated: “The Government is strongly committed to NETZERO. Major markets worldwide, such as the US and Europe, have begun implementing Carbon Adjustment Mechanisms - barriers, standards for Green Transformation, and ESG for imported goods, services, and solutions. Even IT companies providing services to Japan and Europe have started to declare and meet ESG standards for their partners annually.

In addition, IT companies, besides implementing digital and green transformations and ESG practices for themselves, also bear the responsibility of supporting customers in their transformations. Experts say the trend of green transformation and sustainable development, linked with digital transformation, is emphasized, from basic knowledge to standards, measurements, and ecosystems of ESG products and services (environment-society-governance).

In reality, green growth involves restructuring economic activities to promote economic growth in harmony with environmental sustainability and social equity. To achieve this, Vietnamese enterprises must simultaneously undertake both digital and green transformations to enhance production and business efficiency and meet domestic and international market demands in the new development trend. This “dual transformation” trend has emerged in many countries worldwide.

Mr. Wu Jung Pin, General Director of Cheng Loong Binh Duong Paper Company (Binh Duong), stated that, along with the "green consumption" trend, the enterprise is striving to implement "green production" and adopt a circular economy model to meet the market's and customers' greening requirements. Therefore, the company decided to invest in building a factory in the My Phuoc Industrial Park, Binh Duong. According to local government requirements, the enterprise must produce and consume resources based on the circular economy model, recovering waste paper for reproduction through a green and low-carbon production process to make paper a green packaging material. The company has invested more than USD 1 billion to meet the green process goals.

Increased support needed

Alongside opportunities and benefits, green and digital transformations also present numerous challenges and difficulties for enterprises, with successful implementation becoming the optimal solution for this complex problem. Moreover, difficulties in accessing finance, technology, and expertise are significant challenges for enterprises wishing to invest in green transformation activities, especially small and medium enterprises. One of the critical reasons holding back enterprises in this transformation is the lack of field data. This makes it difficult for them to assess the risks and potential of their "greening" projects and plans.

From the enterprise's perspective, Mr. Kieu Van Mat, Chairman of the Board of Directors of Song Da Cao Cuong JSC, said that transitioning to a circular economy with the goal of sustainable energy use will reduce climate change, create economic opportunities, especially for enterprises and scientists in research, design, recycling, and innovation.

The enterprise representative proposed that the Government continue to issue policies to promote the production and application of green building materials; create suitable mechanisms for green building materials to reach consumers, investors, contractors, and projects easily. Additionally, enhance communication and training to raise community awareness about green building materials and their benefits for investors, users, and society, changing habits in using building materials.

“Furthermore, relevant agencies should fully issue product standards, technical regulations, usage guidelines, and economic and technical norms related to green building materials; soon complete assessment processes, documents, and tools to help enterprises access carbon credits and benefits from the circular economy. Support enterprises in accessing green credit sources, preferential domestic and international capital,” Mr. Kieu Van Mat suggested.

The Vietnamese Government has committed to net-zero emissions by 2050 at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), participating in the Just Energy Transition Partnership (JETP), and pledged to attract green financial flows to develop renewable energy, and low-carbon development...

To fulfill these commitments, the Government has strived to implement practical solutions to create a more favorable policy environment for enterprises, such as approving the "National strategy for Green growth 2021 - 2030, with a vision to 2050," expanding the green investment portfolio, and reducing greenhouse gas emissions for investments, financial support...