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COVER STORY

FORWARD-THINKING APPROACH

Representatives from enterprises and consultants tell VET about the increasing
relevance of ESG practices in business and society.

n our relentless pursuit of positive Several noteworthy shifts within the
I change and alignment with global retail industry reflect the changing tide
sustainability principles, AEON has of ESG. These shifts include evolving
embarked on a transformative journey in consumer attitudes towards green prod-
Vietnam. As the Chief Administrative Officer ucts, the influential role of Gen Z con-
of AEON Vietnam, my role is pivotal in sumers in shaping market dynamics, and
steering our organizational vision towards a progressive regulatory landscape that
sustainable development, firmly grounded increasingly favors sustainability. AEON
in environmental, social, governance (ESG) Vietnam’s best practices in promoting a
principles. Within this transformative land- circular economy further exemplify our
scape, AEON Vietnam is committed to inte- Mr. Takeuchi Takashi commitment to sustainability. Initiatives
grating sustainable practices across every Chief Administrative Officer, AEON Vietnam such as reducing plastic usage through
facet of our operations. innovative programs, repurposing bicycles
AEON Vietnam significantly emphasizes to extend their lifecycle, and recycling
three fundamental pillars of sustainable As Vietnam undergoes a dynamic shift food waste to minimize environmental
development: Sustainability in People - in its consumer landscape and regulatory impact showcase our dedication to respon-
Society, Planet - Environment, and Profit - environment, AEON recognizes the grow- sible business practices.
Economics. These pillars are the corner- ing importance of ESG principles. Posi- AEON’s unwavering dedication to ESG
stones of our commitment, to ensure a tioned as a leader, we aim to inspire positive standards and sustainable development
holistic and balanced approach to sustain- change within the retail industry, making goals positions us as frontrunners in
able business practices throughout our sustainability an intrinsic aspect of our responsible business practices. Our
extensive operational chain. Having estab- operations. AEON Vietnam’s comprehen- approach transcends short-term gains,
lished shopping malls in Ho Chi Minh City sive green transformation strategy encap- reflecting a deep commitment to long-
and Hanoi, AEON aspires to not just be sulates myriad initiatives. These include term prosperity, societal well-being, and
merely an economic contributor. Our vision visualizing 3R information on private environmental stewardship within the
extends to becoming a company that creates brand products, implementing PET plastic Vietnamese context. As we navigate this
a positive societal impact and champions bottle collection and recycling projects, transformative journey toward sustain-
environmental stewardship. The dedication addressing food waste at various stages of ability, AEON Vietnam stands as an
to embedding ESG qualities into our core the supply chain, and developing a green inspiring example for businesses aiming
ethos reflects our forward-thinking approach enterprise firmly rooted in the principles to integrate responsible practices into their
to responsible business practices. of sustainable consumption. core operations. %

s a supporter of the Vietnamese understanding the importance of ESG dis-
A Government’s policies, especially closure. This is crucial, as investors, includ-
those pertaining to transition and ing entities like Dragon Capital and Euro-
environmental, social, governance (ESG) pean banks, increasingly seek ESG-com-
practices, I find it crucial to shed light on pliant investments, which impacts the
existing regulations in the country. Circular entire supply chain. Optimism lies in the
No. 96/2020/TT-BTC from the Minister of anticipation of new regulations that will
Finance encourages ESG disclosure, but it be implemented in the years to come,
is important to note that this disclosure is reflecting the Vietnamese Government’s
voluntary for enterprises in Vietnam, par- consideration of potential challenges for
ticularly small and medium-sized enterprises the private sector. Dr. Nam Nguyen
CEO & Climate Advisor, Climate Innovation
(SMEs). This voluntary nature poses chal- The State Bank of Vietnam (SBV) has Consulting & Services JSC
lenges, especially for SMEs seeking disclosure, been actively involved since 2016, issuing
as it is mainly sought by buyers in the supply directives to guide financial institutions in
chain rather than mandated by the govern- enhancing environmental risk management In terms of ESG disclosure by financial
ment. This creates a significant gap in in their lending activities. The focus is on institutions, some have already taken the
mandatory reporting, considering that a increasing the proportion of green and initiative to publish ESG reports. The central
substantial proportion of products in Vietnam sustainable credit. Over time, the respon- bank’s assessment indicates that its policies
come from SMEs. Efforts are being made sibilities of financial institutions in the have been effectively implemented by finan-
to address this, with activities initiated by credit granting process have expanded, cial institutions, positively impacting on
the Ministry of Investment and Planning. with regulations mandating compliance the greening of the banking system. This
I am actively participating in initiatives with legal provisions on environmental aligns with the broader goal of developing
aimed at addressing these challenges. Poli- protection in lending. Circular No. a green banking system in Vietnam. As we
cies are being considered to provide support 17/2022/TT-NHNN from the SBV in 2022 navigate these developments, it is evident
to SMEs in Vietnam, not necessarily in further emphasizes environmental risk that ESG considerations are increasingly
direct financial aid but in the form of reg- management for credit provided to projects becoming integral to both corporate and
ulations. The objective is to assist them in with adverse environmental impacts. financial practices in Vietnam. %

16 | VIETNAM ECONOMIC TIMES | DECEMBER 2023 en.vneconomy.vn