In the context of sustainable development becoming a global trend, the paper industry (considered one of the sectors with a large impact on the environment) is under pressure to be transparent and increase responsibility through ESG reporting. Not only is it a requirement from management agencies, ESG reporting is also a tool to help paper industry enterprises affirm their commitment to society, attract green investment capital and improve competitiveness. So what is the current situation? ESG report of paper industry What is the current situation and what are the challenges and opportunities for businesses? Let's find out about this issue with GREEN IN through the article below!
Why is ESG reporting for the paper industry important?
In the context of the global orientation towards sustainable development, ESG (Environmental - Social - Governance) has become one of the important standards to evaluate the long-term development of enterprises. ESG is not just a report, but a comprehensive reference framework to help enterprises shape their production, management and social responsibility strategies.
The paper industry is considered one of the sectors with the strongest impact on the environment, from the use of wood materials, huge water consumption, CO2 emissions to chemical treatment in paper bleaching, all of which are related to ESG criteria.
In addition, international customers are increasingly demanding: only paper products with sustainability certification (FSC, PEFC) and transparent ESG reports are prioritized. In Vietnam, the application of ESG in the paper industry is still new but has become an inevitable trend. Pioneering enterprises will have a great competitive advantage in exporting, attracting investment capital and building green brands.
Benefits of implementing ESG reporting in the paper industry
Applying ESG (Environment - Social - Governance) not only helps paper industry enterprises meet legal and market requirements, but also brings many strategic, long-term benefits:
Enhance credibility with customers and investors
In the context of consumers increasingly concerned about product sustainability, transparent ESG reporting is a “green passport” that helps paper businesses affirm their brand reputation. According to a survey by PwC (2022), up to 83% of investors believe that ESG information plays an important role in their investment decisions. This means that paper businesses with standard ESG reports will easily build trust and retain customers in demanding markets.
Long term cost savings
Implementing ESG is not only about protecting the environment but also about optimizing costs for paper manufacturing businesses. For example, improving production technology to save energy, reduce water consumption and reuse by-products helps businesses reduce operating costs.
Attracting green investment capital
International investment funds, especially ESG funds and sustainable development funds, increasingly prioritize businesses with clear ESG strategies. This opens up great opportunities for Vietnamese paper enterprises to mobilize green capital, serve production modernization and scale expansion.
Expand export markets
Europe and the US are currently the pioneering markets applying ESG mechanisms in international trade. From 2024, the European Union will begin applying the Carbon Border Adjustment Mechanism (CBAM), making it difficult for businesses without a clear ESG strategy to export. Therefore, ESG reporting is not only a compliance factor but also the “key” for Vietnamese paper products to expand their market share in these markets.
Sustainable development, in line with national goals
Vietnam has committed to achieving net zero emissions by 2050 at COP26. By implementing ESG reporting, paper businesses not only directly contribute to the national target but also enhance their position in the global supply chain. This is not only a social responsibility but also an opportunity to affirm the industry’s pioneering role in the green transition process.
Key indicators in paper industry ESG reports
A paper industry ESG report needs to fully cover three aspects:
| Group | Sample KPI | Important reasons |
| Environmental | Total GHG emissions (Scope 1, 2, and if available, 3) | Assess the greenhouse gas impact of the entire value chain. |
| Rate of renewable energy use (biomass, solar, wind) | Reduce dependence on fossil fuels. | |
| Water consumption / water efficiency | The paper industry is very water-intensive; saving reduces costs + resource risks. | |
| Wastewater / Solid Waste / Chemical Treatment | Reduce pollution, comply with the environment, protect public health. | |
| Paper recycling rate; sustainable certified wood sources (FSC, PEFC…) | Support circular production and resource sustainability. | |
| Social | Occupational safety / occupational accidents | The paper industry has machinery and processes that are dangerous if not controlled. |
| Employee benefits: income, working hours, health assessment of work environment | Retain employees, increase productivity. | |
| Community interaction / impact on local people (smoke, odor, water source…) | Reduce social risks, litigation, and reputational damage. | |
| Diversity & Equality in Recruitment | The standard is of interest to investors and partners. | |
| Governance | Transparent reporting; independent ESG audit | Increase credibility with shareholders/markets. |
| Governance structure – ESG board / members with separate responsibilities | Ensure ESG is strategic and not just cosmetic. | |
| Compliance with environmental, labor and human rights laws | Reduce the risk of litigation and penalties for violations. | |
| Identify supply chain risks (e.g. wood sourcing, chemicals) | Increase stability and safety for production operations. |
Roadmap for developing ESG reports for the paper industry
A possible route might include:
- Step 1: Define reporting scope and standards: choose GRI, SASB or ESRS framework, combined with Vietnamese regulations.
- Step 2: Data collection: build systems to measure emissions, water consumption, recycling rates, occupational safety and governance.
- Step 3: External audit: hire an independent unit to verify data, increase reliability.
- Step 4: Set specific goals: for example, reduce emissions by 10%/year, increase recycling rate to 80% in 5 years.
- Step 5: Technological innovation: renewable energy application, circular water treatment, chlorine-free production.
- Step 6: Transparent communication: publish ESG reports in annual reports, communicate with shareholders and the community.
Conclusion
The above article has helped you learn about ESG report of paper industry in Vietnam. Hopefully our information will be of some help to you. Don't forget to follow the next articles at GREEN IN for more updated information!