In the context of a complex economic situation, in order to create a favorable environment for economic development and retain customers, it is necessary to apply unique business solutions that not only bring profits to the business but also pay attention to social and environmental factors. Therefore, sustainable businesses are increasingly popular and prove the correctness of this type of business. Let's join GREEN IN Learn about sustainable business development through the article below!
1. What is sustainable business development?
Sustainable businesses are understood as businesses that operate based on humane principles that help bring about a balance between profit and responsibility for environmental and social issues. This type of business not only helps bring sustainable profits to the business but also builds competitiveness and a prestigious image in the market.
2. Benefits of businesses pursuing sustainable development
- Building a reputable image: Enterprises pursuing a sustainable development model focusing on environmental protection and social stability activities often receive the trust of partners and customers.
- Improved business performance: Applying sustainable development into business management processes helps reduce waste, optimize production activities, and improve business performance.
- Increased opportunities to enter new markets: The demand for sustainable products/services is on the rise. Businesses can therefore attract new potential customer groups and increase market share.
- Risk Mitigation: Businesses focused on sustainability have superior risk management capabilities, especially those related to regulatory, social and climate change issues.
- Increased innovation: Sustainable businesses focus on innovation and creativity, thereby increasing their competitive advantage in the market.
3. Process to help businesses implement sustainable development
To be able to apply sustainable development strategy in the enterprise, the board of directors needs to take the following steps:
3.1. Step 1: Determine the current situation of the business compared to sustainable development
Before implementing a sustainable development plan, the board of directors needs to re-evaluate the business’s financial situation, market position, etc., and study the impact of sustainable development principles on the business’s development. It can be said that businesses need to clearly understand the core of the sustainable development strategy, whether it brings benefits or the success rate, instead of just following the trend.
3.2. Step 2: Build a strategy
Based on the three core elements of sustainable development including economy - environment - society, businesses need to come up with ideas, build plans to suit each element and promote their internal advantages, develop based on strengths.
3.3. Step 3: Set up a conversion roadmap
After establishing a sustainable development implementation direction, the enterprise needs to define a clear roadmap for the transition from the old way of doing business to this new form of sustainable development. This roadmap not only plays a role in making the implementation process easier in the future, but also acts as a “lesson plan” to support the human resources team to adapt to the new way of working quickly.
3.4. Step 4: Apply to operation and deployment
Before actually starting to implement, the leadership team needs to re-identify the factors that need to be changed in the business, especially the human resources that are directly related to the success rate of the sustainable development strategy. The business can build a core group of employees responsible for supervision and guidance. At the same time, during the operation process, the business should also communicate internally so that the staff can be imbued with the humanitarian ideology, aiming for sustainable development to accompany the management team.
3.5. Step 5: Reporting and information disclosure
A mandatory step in the process of implementing changes to sustainable development strategies is for businesses to report all ESG information to relevant organizations. The purpose of this process is to communicate, promote, and publicly announce the business's strategy, roadmap, and sustainable development priorities. At the same time, this is also an invitation to cooperate and affirm prestige and reputation in the market.
4. Some typical businesses in applying sustainable development models
4.1. Vinamilk
Vinamilk is one of the few pioneering enterprises applying sustainable development goals according to the Government's commitment at COP26 with the strategic action program "Vinamilk Pathways to Dairy Net Zero 2050". This is the first dairy enterprise not only in Vietnam but also globally to commit to participating in the "Pathways to Dairy Net Zero" initiative, affirming a specific roadmap to achieve Net Zero by 2050. One of Vinamilk's outstanding projects is "Vinamilk Net Zero Forest", implemented to protect the environment and increase the ability to absorb greenhouse gases.
Less than a year after announcing this roadmap, Vinamilk has successfully brought three production units to carbon neutral certification according to the international standard PAS2060:2014. This is also the first Vietnamese enterprise to have both factories and farms meeting this carbon neutral standard, demonstrating its relentless efforts in the journey of "greening" the production chain and contributing to the mission of sustainable development. Vinamilk's efforts are clear evidence of its strong commitment to implementing a sustainable development strategy and sticking to the mission of "health care" that the enterprise has maintained for nearly 50 years.
4.2. Vinfast
VinFast is the leading electric vehicle manufacturer in Vietnam. It is also a symbol of sustainable business development with a commitment to minimizing environmental impact and promoting a green economy. The company has produced electric vehicles such as VF e34, VF 8, and VF 9, and invested in a nationwide charging station network, helping to reduce CO2 emissions from transportation. The innovative battery leasing policy not only optimizes costs for users but also encourages the reuse of resources, contributing to the goal of net zero emissions.
4.3. Pan Group Corporation
PAN Group is one of the typical enterprises in Vietnam in pursuing a sustainable development strategy, focusing on green and clean agricultural and food production. The Group has developed strict standards and monitoring mechanisms to ensure that all activities comply with international environmental and social responsibility practices. Typical examples include the implementation of organic farming projects, the application of modern technology such as oxygen-free steaming at Lafooco, or investing in Vinarice rice processing factory with high technology that meets ESG standards.
5. Conclusion
The above article has helped you learn about sustainable business development. Hopefully our information has been helpful to you and contributed to protecting the environment to be greener - cleaner - more beautiful. Don't forget to follow the next articles at GREEN IN for more updated information!