ESG: Driver of productivity and green investment for businesses

Lever for productivity and green investment

ESG is a framework for assessing and measuring a company's sustainability and environmental and social responsibility. It is increasingly seen as a core factor enabling businesses to sustain growth amid globalization and climate change.

Speaking at the seminar “Promoting Green Productivity through the Implementation of ESG Models in Organizations and Businesses,” held as part of the 2026 National Quality and Productivity Forum, Tran Hau Ngoc, Vice Chairman of the National Committee for Standards, Metrology and Quality (Ministry of Science and Technology), said productivity and sustainable development are becoming increasingly closely intertwined in the growth of businesses.

ESG is not merely a matter of reporting or information disclosure. More importantly, businesses need to translate environmental, social and governance factors into concrete management, production and business practices. This can help improve operational efficiency, make better use of resources and support sustainable development.

Today, ESG and green transition are no longer concerns limited to large multinational corporations. Requirements from international markets, investors, customers and global supply chains are increasingly having a direct impact on businesses of all sizes.

“For Vietnamese businesses, particularly those already participating in or seeking to become more deeply integrated into international supply chains, this trend presents both new challenges and important opportunities,” Ngoc emphasized.

Assoc. Prof. Dr. Nguyen Hong Quan, Director of the Institute for Circular Economy Development Research (Vietnam National University Ho Chi Minh City), noted that ESG should not be viewed simply as a compliance cost, but rather as a driver for improving productivity and promoting green investment.

If businesses focus solely on completing forms and collecting data for reporting purposes, ESG can easily become a separate and costly activity. By contrast, when ESG is linked to goals such as saving energy, reducing material use, adopting new technologies, improving job quality and managing risks, ESG investments can deliver direct and tangible benefits.

International experience also shows that ESG is shifting from a reporting tool to a tool for risk management and value creation. Yulia Dobrolyubova, an expert from the Asian Productivity Organization, said stakeholders are increasingly demanding greater transparency from businesses in implementing and reporting ESG practices.

Around 96% of the world’s 250 largest companies by revenue have published sustainability reports. Meanwhile, 93% of private equity investors surveyed globally believe that a focus on ESG can create significant investment opportunities.

These figures show that ESG is becoming an increasingly important factor in investment decisions and assessments of business prospects.

For Vietnamese businesses, requirements from markets such as the EU are increasing demand for data on emissions, climate, supply chains and product sustainability. Businesses must not only demonstrate that their products meet quality standards, but also show how those products are made and what impact they have on the environment, workers and communities.

Businesses need a suitable roadmap

For ESG to deliver results, businesses do not necessarily need to start with a large and costly system. They should first assess their current situation, identify material issues and set goals that match their scale, resources and market requirements.

For small and medium-sized enterprises exporting to the EU, experts recommend assessing their level of ESG maturity and then benchmarking it against recognized international frameworks. Businesses can leverage existing management systems such as ISO 9001 and ISO 14001 rather than building new systems from scratch.

The key is to identify ESG issues that have a direct impact on production and matter to customers, investors and employees. Businesses can start with easily measurable targets such as saving energy, reducing material use, minimizing waste, improving traceability or enhancing working conditions.

Another bottleneck is data. Although 82% of businesses have already collected ESG data, only around 10% use analytical tools to turn that data into information for strategic decision-making.

Many businesses have data but have yet to unlock its full value. ESG only becomes truly useful when data can answer specific questions: Which stage consumes the most energy? Where does waste occur? Which technologies can reduce emissions and costs? Which investments deliver the highest returns?

According to Assoc. Prof. Dr. Nguyen Hong Quan, the circular economy can help turn ESG principles under IWA 48:2024 into concrete actions and measurable outcomes. Vietnam already has a policy framework under Decision No. 222/QD-TTg and the international technical framework IWA 48:2024. The next step is to translate these frameworks into concrete practices within individual businesses and production chains.

From the business perspective, Dao Thi Thanh Ngan, Head of Strategic Development and Planning at Tien Phong Plastics Joint Stock Company, said the company views digital transformation and green transition as a “passport” for improving productivity without compromising the environment.

This approach shows that the two processes need to be implemented simultaneously: digital transformation provides data and management tools, while the green transition uses that data to save resources, reduce emissions and optimize production.