ESG data transparency: Competitive advantage for listed companies

At the launch conference of the 2026 Listed Company Awards held at the Hochiminh Stock Exchange (HOSE) in Ho Chi Minh City, experts noted that ESG has been deeply integrated into corporate governance. Many financial institutions have established sustainability committees or subcommittees under their boards of directors, turning ESG from a commitment into an operational governance mechanism.

Focusing on improving the quality of sustainability reporting is not only about meeting award criteria but also about helping companies strengthen their ESG (environmental, social, and governance) capabilities, build investor confidence, and create a foundation for long-term sustainable growth.

Challenges in emissions management

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Trinh Son Hong, Acting Chairman of the Hochiminh Stock Exchange (HOSE), said that this year, alongside familiar categories such as annual reports and corporate governance, sustainability reporting is being emphasized as a key trend, reflecting increasing demands for transparency in non-financial disclosures. However, many companies still face difficulties in preparing these reports, from identifying material indicators and collecting data to aligning them with long-term development strategies.

Experts noted that ESG reporting is undergoing a significant transformation, with clear divergence across sectors. In the financial sector, ESG has been deeply embedded in governance structures through dedicated subcommittees of boards of directors, turning commitments into actionable initiatives. Banks are also providing concrete figures on loans for environmental projects or the issuance of social bonds. Rather than relying on basic standards as before, they are adopting more rigorous international benchmarks to assess climate risks and comply with global capital market principles.

In non-financial sectors, the divergence is particularly evident in the ability to manage greenhouse gas emissions, a core pillar of the environmental component of ESG. Leading companies view emissions data as a strategic asset that enhances competitive advantage. Meanwhile, “compliance-only” companies produce reports at a minimal level without clear quantitative targets. Most concerning are those that continue to delay action, as the lack of standardized data may gradually erode their ability to connect with major partners and risk exclusion from international business networks.

Must be aligned with business strategy

Despite positive signs of shifting from reporting to creating real value for society, companies still face several limitations. A common mistake is overreliance on generic standards while overlooking sector-specific criteria and climate-related risks. Notably, the ability to assess two-way impacts remains weak. Most companies focus on how the environment affects their financial performance, but fail to clearly demonstrate how their operations impact nature and society in return.

One of the biggest current challenges is controlling indirect emissions across the entire supply chain and product lifecycle. In the financial sector, emissions from financed projects account for up to 99.5% of total emissions, yet most institutions only measure emissions from paper use or employee travel. In non-financial sectors, this includes all emissions across the value chain, from raw materials to product use and disposal.

According to Ton That Hac Minh, a member of the Sustainability Award judging panel, ESG must be aligned with a company’s business direction. An effective ESG report should demonstrate a company’s capability by identifying the right key issues and addressing them through concrete strategies.

From an implementation perspective, a Vinamilk representative shared that the company faces a “maze” of standards and fragmented data pressures. To avoid being overwhelmed by hundreds of indicators, identifying the most impactful aspects for both the company and its stakeholders is critical. Instead of collecting data indiscriminately, companies need to clearly define the target audience of their reports, investors, customers, or export partners, to choose appropriate standards such as GRI (the most widely used sustainability reporting standards) or ISSB (new international sustainability standards focused on financial disclosures).

The ESG journey cannot succeed without genuine commitment from top leadership, not only in messaging but also in resource allocation and accountability. Experts recommend that companies focus on building teams and processes from the outset, prioritizing the integrity of reporting over the number of indicators. In particular, companies must strictly avoid “greenwashing”, misleading practices that exaggerate environmental friendliness, or mechanically copying models from others without considering industry-specific characteristics.

In the race toward Net Zero, companies that master emissions data and integrate ESG into their core business strategies will hold the key to a green future, securing a strong position in the global value chain.