HCMC – Listed firms are required to disclose information about greenhouse gas emissions based on two environmental criteria provided by the Ministry of Finance in their annual reports, as investors and the community at large require them to improve Environmental, Social and Corporate Governance (ESG) standards, heard a seminar on September 14.
The two environmental criteria under Circular No. 96/2020/TT-BTC issued by the Ministry of Finance which listed companies have to comply with from this year consist of reporting the total amount of direct and indirect greenhouse gas emissions, and solutions to reduce the emissions.
The seminar entitled “Leadership/Governance in Sustainability and Climate Change & Challenge and Overcome” organized by Deloitte Vietnam and the State Securities Commission, brought sustainability development issues into discussion, including the greenhouse gas emissions matter.
Sustainable development has been a strategy of many enterprises worldwide. Among these, the management of risks to the environment and society, and publicized solutions to address these issues, are appreciated.
However, the above issues are relatively new to Vietnamese businesses, said Vu Chi Dung, a representative of the State Securities Commission.
ESG standards and sustainable development are important criteria, besides financial ones, for investors to consider whether to inject capital into an enterprise or not.
These criteria have a great impact on an enterprise such as its brand name and prestige, and its investors and partners, a representative of Dragon Capital added.
Due to the importance of these criteria, Vietnamese companies should promptly develop and integrate an ESG strategy into their business plans as a key element to attracting long-term investment.
Vietnam is an emerging market, so listed companies need to have a roadmap for the application of ESG criteria in their business management, a representative of Deloitte Vietnam advised.
Currently, listed companies find it hard to make sustainable development reports which contain the additional environmental criterion as the required report has yet to have a clear set of standards. Besides, enterprises have no idea how to determine the index they need to follow.
Circular No. 96/2020/TT-BTC, Circular No. 116/2020/TT-BTC of the MOF, and the handbook for sustainable reports of Vietnamese enterprises, among others, are currently provisions guiding enterprises on how to make an ESG report.
In the coming time, there will be a common set of standards in the ASEAN region, said a representative of the Hochiminh Stock Exchange.