Businesses contribute to 'greening' the economy - Part 3: Creating a green transformation roadmap to easily access green capital

Starting with the announcement of the green transition roadmap

Mr. Nguyen Duc Minh - a member of the Senior Council of the Vietnam ESG Forum, said that in theory, banks already know about CSR and require businesses to have CSR indicators to access capital. However, Mr. Minh noted that banks do not require immediate results but only require "a CSR roadmap and implementation with specific and clear indicators and deadlines". And whether a business can access capital or not depends on its commitment to CSR. "It is CSR, not green" - Mr. Minh emphasized.

For example, to be able to convert to energy saving and efficiency, when starting to invest, businesses must carefully research which items, equipment, and vehicles can be converted, then consider options and access capital sources. "Capital in this period is very beneficial for businesses that want to invest. Because this is a period when bank money is abundant and interest rates are also good, businesses need to research early to find the most optimal conversion options for themselves," said Mr. Minh.

Mr. Vu Chi Cong - Director of VinaCarbon Investment Fund (Vina Capital Group) said that the greening trend is mandatory so businesses need to start implementing it immediately. Most businesses will have difficulty with the initial cost of investing in green growth, so in the short term, businesses can start by announcing their green growth roadmap. This may help businesses access bank capital more easily because most banks will filter to lend to businesses with green growth awareness first.

Notably, Mr. Vu Chi Cong commented that many Vietnamese enterprises may be reluctant to disclose information because Vietnamese enterprises cannot do as well as enterprises in developed countries, but if the CĐX roadmap is announced, the situation of accessing green capital sources as well as international investment funds aiming at sustainable development will become easier.

Mr. Phan Minh Thong - Chairman of the Board of Directors of Phuc Sinh Company shared: "As someone who directly participates in the green transformation process at Phuc Sinh, and has also received investment from many international funds, I see that every enterprise wants to go green, but is often concerned about costs, complicated processes or does not know where to start". Therefore, Mr. Thong believes that enterprises can gradually go green, starting from the step of determining the starting point. At this step, enterprises must assess the environmental impact, from raw materials, production to operation. And can switch from small changes, for example, replacing plastic packaging with bio-based materials, replacing energy-saving light bulbs, etc.

Need accessible finance for businesses

Mr. Nguyen Duc Minh emphasized that small and medium enterprises will face many difficulties in the process of CĐX, the reason may be due to inadequate awareness. But "I think this is not a difficult problem. The story is that business owners are aware and aware of the importance of CĐX, I think 90% of them can meet it" - Mr. Minh affirmed and analyzed further: "The whole world must CĐX, it is a mandatory requirement and trend but it does not mean that they require it to be done tomorrow, so, as long as there is awareness and determination, businesses will achieve it".

With just a green transformation roadmap, businesses have the opportunity to access green capital. (Illustration photo)

Mr. Minh gave an example of the issue of corporate awareness. Accordingly, if a company uses a coal furnace for production and is aware that coal production will produce carbon, smoke, and environmental pollution and wants to switch to other fuels, such as electric furnaces, but cannot do so immediately. Therefore, the company will have a gradual adaptation roadmap, starting with finding ways to reduce the amount of coal used or reduce the amount of smoke and dust emitted into the environment through a step of "flushing coal through water" to reduce the release of dust into the air.

“That is called a roadmap and capital providers will assess that the enterprise has a roadmap for implementing the CDX and thus the enterprise may have a head start in accessing capital. The conversion time is 3 years, 5 years or more, depending on the needs and requirements of the conversion. But the conversion plans must be agreed upon between parties such as authorities or banks, capital guarantee units to come up with the most feasible roadmap,” said Mr. Minh.

Mr. Phan Minh Thong also gave some ideas for businesses to easily implement CSR such as learning and taking advantage of preferential policies, support funds from the Government and international organizations on sustainable development. Communicating green commitments by building a sustainable brand image, attracting customers and investors interested in ESG. At the same time, applying green technology through the use of energy-saving technology, automating production to reduce emissions.

In addition, Mr. Thong said that the Government also needs to have a clear and accessible financial support policy because the green industry needs investment capital, especially in technology and production processes. The State can create conditions by providing preferential loan packages or tax exemptions for businesses investing in energy-saving technology, recycling raw materials, and developing sustainable agriculture; Building a support fund for small and medium enterprises so that they can access green technology without too much financial pressure.

“Cooperation is not a burden, but an opportunity. With determination and the right support policies, Vietnamese enterprises can develop sustainably, enhance brand value and export more strongly” - Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Company.

Hoang Tu - Quynh Chi

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