BUSINESS IMPACT ON THE ENVIRONMENT
Question: Ms. Nguy Thi Khanh, could you please tell us the main impacts of production and business activities on the environment today?
Mrs. Nguy Thi Khanh: Today, we can clearly see two sides of the impact of businesses on the environment. On the negative side, the traditional linear economic model is causing many serious consequences. Production activities using fossil fuels emit large amounts of CO2, SO2, NOx and fine dust, contributing to global warming and ozone layer depletion. Untreated industrial wastewater is polluting water sources, especially in areas where clean water is scarce. Solid waste from production, if not properly treated, will pollute soil and groundwater. More worryingly, over-exploitation of resources such as shrinking forest areas and logging without timely restoration measures is seriously reducing forest cover and biodiversity.
Q: What about the positive signals, sir/madam?
Ms. Nguy Thi Khanh: It is encouraging that there are many positive signs. Many pioneering enterprises have begun implementing forest and ecosystem restoration programs, producing and applying renewable energy, using energy more efficiently and embarking on the digital journey. The trend of applying the circular economic model is increasingly popular, in which waste is recycled into input materials for the production process. Many environmentally friendly products have been born, not only meeting market demand but also contributing to creating sustainable values for society. In particular, these enterprises also create many green jobs, contributing to improving the quality of life for workers.
Ms. Nguy Thi Khanh - Founder & Strategy Director of GREEN IN
Question: In your opinion, why is the transition to a sustainable production model so urgent?
Ms. Nguy Thi Khanh: The transition to a sustainable production model is urgent because the environment is seriously degrading and humanity has exceeded many of the planet's tolerance limits such as climate, biodiversity and material cycles. If there is no change, businesses will face high costs, risks of supply chain disruption and loss of competitive advantage. Major markets such as the EU are tightening green barriers such as CBAM and ESG standards, forcing businesses to take action. Domestically, environmental policies are also increasingly strict, while sustainable production brings long-term economic benefits and increases brand reputation. This is not only a trend but also a way of survival for businesses and for the future of the planet.
RELATIONSHIP BETWEEN BUSINESS AND ENVIRONMENT
Question: Madam, please tell me why it is said that businesses and the environment have a close relationship?
Mrs. Nguy Thi Khanh: This relationship stems from the complete dependence of businesses on natural resources. From energy, water to raw materials such as plastics and metals - all originate from the natural environment. When the environment changes, it has a direct and immediate impact on business operations. For example, water scarcity not only increases production costs but also threatens the entire supply chain. Or the use of fossil fuels, in addition to contributing to climate change, directly affects workers' health through air pollution.
Question: So, in your opinion, how should businesses perceive this relationship?
Mrs. Nguy Thi Khanh: My view is that we need to be aware of three core relationships. The first is the relationship with ourselves - understanding the core values and purpose of the business. The second is the relationship between our activities and the community and the environment around us. And most importantly, the third - the relationship between us and the wider natural environment. This is not a one-way relationship but a two-way interaction, where every action of ours leaves an imprint on the environment, and vice versa, changes in the environment will in turn impact our own activities.
Businesses cannot live on a dying planet, this is a relationship where businesses must rely on the environment and the planet to be able to exploit and operate most smoothly. Therefore, the responsibility of businesses to the living environment is an indisputable thing.
Question: Given this situation, what advice do you have for businesses?
Mrs. Nguy Thi Khanh: I really agree with the statement: most businesses go bankrupt/fail not because their competitors are stronger but because they do not change in time with the times. When the environment in which businesses operate has changed, it is essential to shift from an exploitative mindset to a restorative mindset. Instead of focusing solely on resource exploitation, businesses need to build business models that not only generate profits but also contribute to environmental recovery and regeneration. This not only helps to minimize risks from climate change but also creates a sustainable competitive advantage. Remember, environmental protection is not a cost burden, but an investment in the future existence and development of the business itself. No business can develop on a dead planet.
SOLUTIONS TO REMOVE DIFFICULTIES IN GREEN TRANSFORMATION FOR BUSINESSES
Question: Madam, with the challenges mentioned above, what do you think businesses need to do to overcome financial barriers in green transformation?
Mrs. Nguy Thi Khanh: To solve the financial problem, businesses need to approach in three directions. First is to take advantage of preferential capital sources from banks and green development funds. Second is to apply a step-by-step conversion roadmap to allocate costs reasonably. And equally important is to calculate the ROI of green solutions to clearly see the long-term economic benefits.
Question: Regarding policy, what suggestions do you have to narrow the gap between policy and practice?
Mrs. Nguy Thi Khanh: Recently, the State has issued many policies to support the development of private enterprises and will apply a post-control mechanism instead of input control as before. Enterprises need to proactively grasp the provisions of the law and the opportunities brought by the policies to plan appropriate business strategies and plans. To shorten the gap between policy and practice, it is necessary to establish a two-way feedback mechanism. Business associations should act as a bridge, gathering opinions from enterprises to propose adjustments to shortcomings in policy implementation. At the same time, competent authorities need to simplify procedures and raise awareness of existing support policies.
Question: Regarding human resources, what advice do you have for businesses?
Mrs. Nguy Thi Khanh: Enterprises should invest in internal training combined with hiring external experts. It can start with training core staff, then expand to the entire company. In the short term, to meet the requirements of legal compliance and customer requirements as well as reduce the pressure to increase regular staff, enterprises can also refer to the model of on-demand sustainable development consulting services because this is an interdisciplinary field that requires extensive expertise that cannot be trained in a day or two. Along with that, it is necessary to build capacity for internal staff. At the same time, it is necessary to develop a policy to attract and retain talent in sustainable development.
Q: Finally, how can businesses make the transition without disrupting production?
Mrs. Nguy Thi Khanh: Transformation itself is transitional in nature, to ensure that it is not disruptive. The first thing a business should do is assess its sustainability status to know where it stands in relation to the overall picture of the industry. This includes inventorying greenhouse gas emissions and assessing sustainability practices according to ESG standards. From that current picture, the business will build a transformation plan with a step-by-step roadmap based on the results. Often we will choose to implement solutions that are easy to do, bring quick results, and require little investment up front. Businesses can pilot implementation in a workshop or production line before expanding. At the same time, to proactively manage the transformation process, businesses should have a thorough employee training plan before implementing major changes.
Thank you for your valuable sharing.