Corporate Sustainability and ESG Reporting Firm Inks Vietnam Partnership

Vietnamese conglomerate Bamboo Capital has announced its partnership with Singapore-based environmental, social, and governance (ESG) data and technology solutions company, STACS, to support corporate sustainability and ESG reporting for businesses in Vietnam.

Vietnamese companies are facing rising pressures from both international and local developments to embark on decarbonisation and sustainability.

This comes with heightened regulations from the European Union (EU) around ESG reporting and sustainable procurement, which would require importers to the EU to pay a levy that corresponds to the price of emissions allowance under the EU Emissions Trading System.

While locally, the Vietnamese government has also established regulations around governmental green procurement, which has led to an increase in sustainable procurement.

With an estimated 785,000 SMEs, which make up more than 98% of the total number of businesses in Vietnam, SMEs in Vietnam play a pivotal role in being key suppliers to global businesses and hence, in the decarbonisation of global supply chains (Scope 3 emissions); SMEs are increasingly expected to decarbonise in order to meet regulations and remain competitive.

To help companies in Vietnam embark on corporate sustainability and develop plans for greenhouse gas (GHG) reduction, Bamboo Capital has partnered with ESGpedia on capacity building for companies in the region.

Covering over 5 million sustainability data points, with leading banks and corporate clients onboard, ESGpedia is a one-stop ESG registry that aims to empower financial institutions and companies to achieve strategic sustainability goals through robust global ESG data, as well as solutions and analytics.

Increasing Trend of ESG Awareness

ESGpedia is live across Asia, powering the ESCAP Sustainable Business Network (ESBN) Asia-Pacific Green Deal digital assessment, and as a technology platform partner for the ASEAN Single Accesspoint for ESG Data (SAFE) Initiative pilot by the Sustainable Finance Institute Asia.

Through the partnership, Bamboo will integrate with ESGpedia to help companies, especially those new to ESG reporting and sustainability, easily calculate their Scope 1 and 2 carbon emissions. This involves the ESBN Asia-Pacific Green Deal digital assessment available for free on ESGpedia.

Companies can fill up the guided self-assessment and simply input details on electricity and water consumption to attain greater insights into their carbon footprint figures, which are automatically calculated and localised to Vietnam.

Andy Tan, Group Strategy Director at Bamboo Capital, said: “We are delighted to be partnering with STACS’s ESGpedia to empower businesses in Vietnam towards corporate sustainability and ESG reporting. There is an increasing trend of ESG awareness and requirements in Vietnam today as Vietnam becomes increasingly important in the global supply chain. Yet, many of the businesses are lacking the expertise and resources to start.”

Renewable energy is another focus of the partnership. Renewable energy certificates (RECs) offer companies in Vietnam the opportunity to reduce their Scope 2 carbon emissions from electricity use.

While REC is a key instrument in Asia’s transition to a net zero economy, transparency and traceability is a current industry challenge. Through the new partnership, Bamboo Capital will utilise ESGpedia to promote greater transparency of the RECs lifecycle, by immutably recording all attributes of RECs, including the transaction and ownership details of each REC, as well as the immediate retirement of RECs upon purchase, to ensure no double-trading.

The latest cross-border partnership follows ESGpedia’s agreement with Thailand’s state-owned power utility Electricity Generating Authority of Thailand in bringing greater transparency to the RECs market in Thailand.