An ESG report (Environmental, Social, and Governance) is a document published by companies to showcase activities and outcomes related to three main aspects: Environmental, Social, and Governance. These are critical factors in assessing the sustainability and accountability of a company towards the community and stakeholders.

- Environmental: Covers environmental protection activities such as emissions management, resource use, ecosystem protection, and climate change mitigation.

- Social: Focuses on the company’s social responsibilities, including employee benefits, working conditions, labor safety, and contributions to the community.

- Governance: Describes organizational structure, management methods, and processes, including risk management policies, business ethics, transparency, and shareholder participation in corporate governance.

An ESG report is typically used to provide investors and stakeholders with a comprehensive view of the company’s capabilities and performance, not only in terms of production and finance but also in social and environmental impact. This enables stakeholders to make responsible investment decisions.

The process of creating an ESG report generally includes the following main steps:

1. Define objectives and scope:
- Identify the purpose and objectives of the ESG report (e.g., enhance transparency, meet investor demands, comply with legal regulations).
- Define the scope of the report, covering the environmental, social, and governance areas to be reported, as well as the reporting period.

2. Data collection and analysis:
- Collect data from relevant departments, including information on emissions, energy consumption, social policy implementation, and corporate governance.
- Use relevant ESG Key Performance Indicators (KPIs) based on industry standards, field-specific standards, or applicable regulations.

3. Impact and performance evaluation:
- Analyze collected data to evaluate the company's impact on the environment, society, and governance standards.
- Assess the effectiveness of implemented policies and measures, identifying strengths and weaknesses.

4. Report content development:
Draft the report, focusing on achieved results, challenges, and future action plans. An ESG report typically includes the following core sections:
- Overview of the company and report objectives.
- Summary of key results and impact of the company’s ESG activities.
- Challenges and ESG-related risks, along with mitigation measures.
- Stakeholder feedback: investors, community, employees, etc.
- ESG targets, required KPIs, and implementation plans.
- Appendix with metrics; references.

5. Information verification:
- Review data and report content to ensure accuracy, transparency, and alignment with international standards.
- Companies may invite third-party verification (if needed) to enhance credibility.

6. Approval and disclosure:
- Finalize and submit for leadership approval.
- Disclose the report through suitable channels: website, investors, conferences, seminars, etc.

An ESG report brings practical benefits to companies by enhancing reputation and brand image, building trust with investors and customers, and attracting responsible investment funds. Besides meeting legal requirements and enhancing transparency, an ESG report helps companies identify and manage risks related to the environment, society, and governance, driving sustainable growth. Publishing an ESG report also affirms the company’s commitment to social values and sustainable development, creating a competitive advantage in the global market.
 
If you need assistance with ESG report preparation, please contact:
 
GIC VIETNAM
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