ESG handbook launched to help businesses access sustainable finance

The Ministry of Finance released a handbook on March 24 in Hanoi to guide enterprises in adopting the Environmental, Social, and Governance (ESG) framework.

Developed by the ministry's Department of Private Enterprise and Collective Economy Development, in collaboration with the British Embassy in Vietnam and other partners, the handbook is designed to assist small and medium-sized enterprises (SMEs) in integrating ESG criteria into their operations and reporting practices.

ESG is a corporate governance principle that emphasizes making positive impacts on the environment and society while ensuring fair and transparent organizational governance.

Speaking at the conference, Mr. Fergus McBean, First Secretary for Climate and Nature at the British Embassy, highlighted the critical role of ESG in shaping modern business strategies and investment decisions.

"ESG practices help Vietnamese businesses meet the requirements of financial institutions and international markets, particularly the United Kingdom and the European Union (EU). Both markets plan to introduce measures that will require Vietnamese businesses to report on ESG and climate-related actions," he said.

Mr. McBean acknowledged the proactive efforts of Vietnamese businesses in embracing ESG but highlighted the challenges they face due to limited support for ESG reporting. These challenges hinder the progress of implementation, restricting access to green financing and opportunities to enter the global market more effectively.

Mr. Nguyen Duc  Trung, Deputy Director of the Department of Private Enterprise and Collective Economy Development, stressed the importance of ESG adoption for both business and economic growth.

ESG is not merely a trend but a vital requirement for enhancing competitiveness, attracting international investment, expanding export markets, and meeting societal expectations, he noted.