ESG integration at Vietnam's leading consumer and retail businesses

Attracting investment capital through business efficiency combined with sustainable development strategy

Originally a spice factory in Ho Chi Minh City, Masan Group has developed into a leading consumer - retail group in Vietnam with nearly 30 factories and more than 3,600 WinMart/WinMart+/WiN retail points nationwide.

In June 2024, in the ranking of the top 500 companies in Southeast Asia in 2024 announced by Fortune Magazine for the first time, Masan Group is the leading company in the field of consumer goods - retail in Vietnam with revenue in 2023 reaching over 3.2 billion USD. This group is also the leading enterprise in attracting foreign capital.

In 2023, Masan Group attracted a syndicated credit package of up to USD 650 million from BNP Paribas, Credit Suisse, HSBC, Standard Chartered and United Overseas Bank. In April 2024, Bain Capital - a US-based private equity fund also completed a USD 250 million equity investment in Masan Group. The transactions have affirmed the confidence of financial institutions in Masan's business execution capacity as well as the group's sustainable development strategy.

In recent years, in addition to business results, ESG practices, green growth and sustainable development are criteria that international investors are interested in when evaluating investment decisions in a business.

WinEco applies technology to ensure product quality. Photo: Masan Group

Masan has implemented ESG integration into its business operations by identifying key topics that are critical to its operations and value chain. In 2024, Masan will continue to integrate ESG into its business operations and decisions, moving towards its 2030 vision by implementing innovative initiatives to ensure alignment with ESG and Climate Trends.

Sustainable resource management

With production and business activities that have a profound impact on 100 million Vietnamese consumers, Masan has invested in advanced manufacturing plants, using the most modern and environmentally friendly production lines in the world . "When planning any new project, we always calculate the impacts on the surrounding environment, from which we come up with appropriate environmental protection plans before implementing the project" - said a representative of Masan Group.

Masan MEATLife processing factory complex. Photo: Masan Group

The Group's environmental commitment starts from the most intimate things, first of all, caring for the environment around the workplace. Masan's factories and surrounding areas are covered with greenery and provide fresh air.

At Masan Consumer's factories, 20% of the total campus area is reserved for planting trees to ensure a green and environmentally friendly workplace. Masan MEATLife's chilled meat processing complexes have green areas covering 24% - 31% of the total area of the entire complex, higher than local requirements.

To improve energy efficiency and reduce carbon emissions, Masan’s factories have adopted many initiatives. For example, Masan Consumer utilizes rice husks and sawdust to produce renewable energy for the entire production facility. This approach not only provides a sustainable and cost-effective energy source but also contributes to job creation and increased income for local people.

In addition, Masan Consumer's consumer goods factories also optimize production processes, reduce energy consumption by taking advantage of heat lost during frying and sterilizing products, and avoiding heat-changing processes. "Masan Consumer has been awarded the ISO 50001:2018 Energy Management System Certification in 2023. This recognition recognizes our commitment to energy conservation and motivates us to maintain and expand energy-saving measures in all operations," said a company representative.

All wastewater from Masan's factories in the provinces meets class A standards. Photo: Masan Group

In addition to energy conservation practices, water management is a major concern at Masan’s factories. In 2023, Masan Consumer recorded total water consumption of more than 123,828 megalitres compared to nearly 138,402 megalitres in 2022. Water consumption decreased by 11% in 2023. Masan Consumer’s long-term goal is to reduce water usage by 5 to 10% per unit of production by 2025 through enhanced water recycling measures.

All wastewater from Masan's factories in Binh Duong , Long An, Hai Duong, Nghe An, Thai Nguyen and Ha Nam provinces meets Class A standards, the highest according to Vietnamese Standards and exceeds industry standards.

Best Places to Work in Asia

With diversified business operations spanning many sectors and products consumed in many markets around the world, Masan's employees include many different nationalities: the United States, Australia, India and Vietnam.

In 2023, Masan's Growth Center organized more than 1,700 training sessions and workshops on various topics, including leadership and coaching skills, presentation skills, problem solving, and decision making. These classes attracted more than 33,214 employees to participate in training.

20% of the total campus area is reserved for planting trees to ensure a green workplace. Photo: Masan Group

Harmonizing a team of nearly 40,000 members from diverse regions and countries, Masan Group was honored as "Best Workplace in Asia 2023", winning the award category "Enterprise with diverse, equal and inclusive working environment" by the leading prestigious magazine on human resources in Asia, HR Asia.

With a systematic sustainable development strategy, Masan Group has been in the “Top 50 Outstanding Sustainable Development Enterprises in Vietnam” Ranking for many consecutive years. In 2024, Masan Group was honored as the leading unit in the Listed Enterprise Sector, achieving all 3 categories: E - Sustainable Resource Management, S - Human Resource Strategy for Sustainable Development and G - Excellent Corporate Governance.

Mr. Le Ba Nam Anh - Senior Director of Capital Markets & Strategic Initiatives, Member of the ESG Committee of Masan Group said: "As a leading enterprise in the consumer retail sector with products and services for 100 million Vietnamese consumers and a trusted partner of suppliers, we see the important role and influence of the group in upgrading the food value chain and contributing to Vietnam's Net Zero commitment by 2050.

This requires a different way of thinking about future business models, where sustainability is not just about risk management but also an opportunity to make a difference to customers, partners and the community. "Doing Well By Doing Good - That's the way we go."

Source: https://laodong.vn/kinh-doanh/tich-hop-esg-tai-doanh-nghiep-tieu-dung--ban-le-hang-dau-viet-nam-1376094.ldo