"If a business is financially successful, they can invest more effectively in ESG initiatives and when all factors operate harmoniously, businesses succeed financially and create a positive impact on the society, employees and the environment. A successful ESG strategy requires a close connection between several factors," said Kudrna.

Jakub Kudrna (left), chief strategy officer and chairman of Home Credit Vietnam’s ESG Steering Group. Source: Vietsuccess

While Home Credit's ESG strategy may be more focused on social and governance aspects, when it comes to the environmental element, Jakub feels that protecting the environment is a must for businesses. Home Credit views the environment as the cornerstone of its policy, implementing a number of metrics that it reports in its annual sustainability report, such as energy consumption and carbon emissions, as well as how employees commute to and from work. In addition, by offering customers effective digital experiences, the company saved 84 million sheets of paper, equivalent to approximately 420 tons of paper in the last year alone.

"When it comes to the social aspect, sustainable development should not just focus on profit, it must also be people-centric, prioritising the improvement of employees’ wellbeing and working conditions, as well as motivating their career development," explained Kudrna.

"Home Credit concentrates on offering inclusive financial solutions for customers, especially those underserved by financial products, to enhance their lives, thereby promoting sustainable development in the community and reducing inequality," he said.

Regarding governance, risk management and transparency are decisive factors for Home Credit. Additionally, data and security also play a crucial role in safeguarding customer information and fostering trust, ensuring customers feel secure when using the company's services.

Source: Vietsuccess

Home Credit does not see the embracement of the ESG strategy as a trade-off. Instead, Home Credit integrates ESG into its overall development strategy so that it can grow in parallel with the company's core strengths. This means that ESG is not just a secondary goal but an integral part of the business strategy.

Source: Vietsuccess

When implementing ESG as a strategy, businesses should not need to choose between profit and sustainable development, as ideally, both will complement each other. Sustainable development helps enhance consumer trust, attract talent, and create a solid foundation for long-term growth, thereby driving business efficiency.

According to Kudrna, "The simplest way to integrate ESG into Home Credit's strategy and create sustainable impact is to continue developing the company's core strengths, such as improving the risk management system, developing new financial products, and upgrading the mobile application."

Kudrna believes that companies must understand how to develop their risk management framework clearly to measure the long-term impacts of ESG strategies on profits, market position, business objectives, and return on investment figures.

Among these factors, Kudrna emphasised the importance of the ratio between profit margin and risk cost.

Source: Vietsuccess

Every year, Home Credit collects feedback from employees to assess their pride in the company, as well as the ESG values the business is implementing. According to Kudrna, feedback from those directly involved in the company's daily operations reflects ESG successes more accurately and realistically than boring theoretical concepts.

In addition, leaders play a key role in driving the implementation of the ESG strategy and inspiring employees to participate. Leaders must establish a culture that prioritises actions and influence. This is evidence that a sustainability strategy is not only a social responsibility but also a corporate culture, where influence does not stop at mere slogans or titles.

In summary, the ESG strategy must align with the development of the business. This strategy not only benefits the environment and the community but also contributes to maintaining and enhancing the market position of the business.