Delegates at a workshop on “How to Integrate ESG into Business Strategy: Best Practices from Singapore” held by VIETSTAR Institute of Management and Singapore Management University in HCM City on March 1. (Photo courtesy of VIETSTAR)

Amidst the global trend of sustainable development and responsible business, it has become critical for enterprises to incorporate environmental, social and governance (ESG) practices into their operations to better integrate with the world market and gain a competitive edge, a workshop has heard in Ho Chi Minh City.

At “How to Integrate ESG into Business Strategy: Best Practices from Singapore” held last weekend by VIETSTAR Institute of Management (VIETSTAR) and Singapore Management University (SMU), Boon Hoe Ooi, former CEO of Singapore's Jurong Port, said embracing ESG is an inevitable requirement.

Companies that effectively implement ESG practices adapt more quickly to changing market and environmental conditions and attract more partners, he said.

He shared key insights to help businesses understand core principles, challenges and practical lessons in ESG implementation and provided strategic planning methods and ESG applications in key industries such as energy, transportation, logistics, agriculture, and finance.

He also mentioned the hurdles to implementing ESG practices.

For businesses, shifting investment towards ESG comes with significant costs, and while some industries have clear ESG standards, others lack established guidelines, he said.

He stressed the need for a standardised ESG framework that businesses can adopt.

To achieve this, Government involvement is crucial in refining policies and providing financial support to help businesses integrate ESG practices, he added.

Pham Thi Thu Hang, CEO of VIETSTAR, said, to support Vietnamese businesses in implementing ESG, her company tied up with SMU in 2022 and has organised a series of initiatives, including workshops on ESG implementation strategies for businesses, the ASEAN Fellowships in Energy Sustainability and co-hosted the Vietnam-Singapore Business Forum (VSBF).

The VSBF has brought together leading regional speakers and researchers to develop a set of practical governance principles, helping Vietnamese businesses define sustainable strategies, leverage opportunities, and implement ESG initiatives effectively.

While the workshop provides strategic insights, the ASEAN Fellowships in Energy Sustainability Programme is designed to enhance the expertise of leaders and managers, particularly in the energy sector, a key industry for regional sustainable development, she said.

The programme focuses on analytical skills and effective decision-making tools for energy transition, and is hosted in pioneering green energy countries such as Singapore, the Republic of Korea, and Vietnam, with participation from global experts and support from major energy corporations like SK Group, Sembcorp Industries and GE Vernova, she added.

Launch of 2025 VSBF

On the sidelines of the workshop, VIETSTAR and SMU announced the launch of this year’s VSBF.

With the theme "Charting ASEAN’s Sustainability Future: Green Business Opportunities in a Surging Net-Zero World," VSBF 2025 takes place amid Vietnam’s ongoing governance streamlining and reform efforts.

Hang, who is also director of VSBF, said VSBF 2025 would focus on successful case studies, best sustainability practices, frameworks for integrating sustainability into corporate governance, and cross-border sustainability dialogues.

“VSBF 2025 will emphasise sustainable transitions across multiple sectors and inspire leaders to continue striving for excellence and innovation.

“A key highlight of this year’s forum is the Cross-Border Sustainability Dialogue: How to Build an Innovation Ecosystem to Accelerate Sustainable Transformation.

“Speakers from the World Economic Forum, the Republic of Korea and Singapore will discuss innovation ecosystems in agriculture, urban development, logistics, and more, while providing governance and ecosystem management recommendations.”

VSBF 2025 is expected to gather over 200 scholars, board members, C-suite executives, senior managers, and consultants from Singapore, the Republic of Korea, France, the US, and Vietnam./.