Four years ago, Mr. Binu Jacob, CEO of Nestlé Vietnam, came to Vietnam and first encountered Pizza 4P’s, a restaurant chain that would profoundly influence his perspective on sustainability. Stepping into its unique establishment in District 2, Ho Chi Minh City, he was greeted not by the typical restaurant ambiance but by what seemed like a living, breathing greenhouse. Plants, a pond with fish, and a composting system featuring worms were all part of an intricate sustainability cycle. He shared the memory during the 11th Vietnam Corporate Sustainability Forum (VCSF), held in Hanoi on September 10.

As Mr. Jacob observed the restaurant’s operations, he was struck by the ingenuity of its approach. Food waste was composted with the help of worms, and the resulting compost enriched the soil for growing new produce. This cycle extended further, as the waste from the fish was used as fertilizer, and the resulting produce was used in the restaurant’s dishes. The efficiency of this closed-loop system was astounding, demonstrating that even small enterprises can make a significant impact with innovative sustainability practices. Pizza 4P’s, which has 39 locations, has managed to save over 88 tons of food waste from landfill, all while maintaining an engaging customer experience with high-quality food and eco-friendly practices.

His experience with Pizza 4P’s became a powerful illustration of his belief that sustainability is not a cost but a worthwhile investment. Over the past four years, as a Co-Chair of the Vietnam Business Council for Sustainable Development (VBCSD), Mr. Jacob has consistently championed this perspective. His role has been to advocate for sustainability, collaborating with organizations like the Vietnam Chamber of Commerce and Industry (VCCI) and VBCSD to encourage others to see sustainability as a path to creating value, not merely a social responsibility.

He recognized that many companies, both in Vietnam and globally, viewed sustainability as a social responsibility, something they felt obligated to do, rather than a means to create value for their businesses and brands.

Many companies, he continued, see sustainability and profit as a zero-sum game, where one must be sacrificed for the other. He argues against this notion. “I’m here to tell you that at Nestlé, we don’t subscribe to this belief,” he explained. “We don’t see it as an either-or situation. We believe that, when done right, sustainability can actually drive value.”

To demonstrate this, he shared examples from Nestlé Vietnam. The first was its campaign with Milo, aimed at tackling plastic pollution. Recognizing that plastic straws contribute significantly to waste, Nestlé decided to replace them with paper straws, despite the higher cost. They launched the “Say No to Plastic Straws” campaign, collaborating with KOLs (Key Opinion Leaders), environmental activists, and social influencers. It quickly became the Number 1 social campaign of 2021, reaching over 2,000 schools and engaging students about the importance of using paper straws. As a result, 178,000 consumers pledged to stop using plastic straws, and Milo’s brand health scores for environmental care increased from 73 per cent to 80 per cent. Moreover, children began asking for Milo because of its eco-friendly straws.

In another example, Nestlé worked with 21,000 farmers in Vietnam’s central highlands over the course of a decade, rejuvenating more than 78,000 ha of coffee plantations. The effort cut pesticide use by 20 per cent and water use by 40-60 per cent, and increased farmer incomes by 30-150 per cent. Some of the farms even became carbon-neutral. To connect consumers with this sustainability effort, Nestlé launched the “Surreal Internship” campaign, allowing consumers to experience sustainable coffee farming first-hand. The response was overwhelming, with 18,000 applications received within two weeks, compared to the usual 200 for a Nestlé job opening. This campaign not only reached 80 per cent of the target audience but also significantly boosted Nescafé’s brand health score, making it the leading packaged coffee brand in Vietnam.

Mr. Jacob acknowledges that not every business has resources like Nestlé’s, but he emphasizes that sustainability can and should be adapted to fit any scale. The example of Pizza 4P’s also demonstrates that even a small restaurant can create a robust sustainability model that resonates with customers and drives business success. “I agree that not everyone goes to Pizza 4P’s just because of the sustainability story,” he said. “However, you can’t help but notice the initiatives they have. Most importantly, if you observe the people working at Pizza 4P’s, they’re always happy because they’re proud to work for a company that is making a difference to the planet, and that pride shows in their service.”

Sustainability and profit are part of a more balanced equation. One cannot exist without the other, Mr. Jacob noted. With a stronger focus on sustainability, profit will also follow. There will come a time when, if companies don’t prioritize sustainability, they may not survive, and it’s better to start now than to try and catch up later.

Mondelēz Kinh Do, meanwhile, has had a longstanding and extensive presence in Vietnam, with over 80 per cent of households consuming at least one of its product almost every day, according to Managing Director Mr. Anil Viswanathan. This prominent market position underscores is commitment to growing the market responsibly and with a strong focus on environmental sustainability.

“We are a combination of a very big global organization with a very clear local heart,” he said, highlighting the company’s dual focus on global expertise and local impact. With its significant market footprint, Mondelēz Kinh Do feels a profound responsibility to ensure its growth aligns with sustainable practices. “We are committed to bringing all the global know-how that we have around the world to grow this market in a responsible way,” he explained.

In its environmental strategy, the company focuses on three pillars: the environment, economic resilience, and caring for people and communities. “We are committed to achieving net-zero by 2050, and our commitments are in line with Vietnam’s commitment,” Mr. Viswanathan pointed out.

One notable initiative is its work with cage-free eggs. “We consume over 150,000 eggs a day, and we have started working over the last three years to source eggs sustainably,” he said. “Starting from ‘ground zero’ in the south of Vietnam and now in the north, we have developed a full ecosystem of suppliers who produce cage-free eggs.”

As a result, within three years, 25 per cent of all its eggs are cage-free. Despite the fact that these eggs cost 30 per cent more than regular eggs, Mondelēz Kinh Do remains committed to the initiative. The company has garnered strong support from its passionate consumers, who understand that the move benefits both the environment and animal welfare. This alignment with consumer values is reflected in the positive outcomes of its investments in cage-free eggs.

The next area of focus was on paper packaging. While much attention is given to plastics, such as bottles and PET, and many companies are investing in recycling these materials, paper packaging often receives less attention. In Vietnam, where gifting is a significant cultural practice and festivals involve exchanging numerous paper boxes, Mondelēz Kinh Do is proud to lead pioneering efforts in sustainable paper packaging.

The company is committed to advancing paper recycling and creating a circular economy by ensuring that more paper is collected and reused. Currently, only 30 per cent of paper is recycled and, alarmingly, 70 per cent of recycled paper originates from other countries, which is far from ideal. To tackle the issue, Mondelēz Kinh Do is collaborating with leaders in the paper packaging and recycling sectors. It has signed an MoU with PRO Vietnam (Packaging Recycling Organization Vietnam) to drive the circular economy forward in the country, aiming to increase the collection and reuse of paper. Through such pioneering initiatives, Mondelēz Kinh Do is making a significant impact on environmental sustainability in paper packaging.

“While a lot is being done about the environment, we firmly believe that for Vietnam to make progress in sustainability, we really need to bring people along,” Mr. Viswanathan stressed, addressing the importance of integrating sustainability with community welfare. He emphasized that true progress in sustainability requires addressing immediate challenges faced by people and communities. “Consumers often struggle to think long-term if their immediate needs are not met,” he explained.

To support this, Mondelēz Kinh Do’s focus over the past two years has been on nurturing the cultural foundation of Vietnam to empower its people to envision and build a sustainable future. By collaborating with the Ministry of Culture, Sports, and Tourism as well as the Ministry of Labor, Invalids and Social Affairs, Mondelēz Kinh Do is supporting cultural initiatives and celebrating festivals, and the company aims to build a strong cultural foundation that fosters long-term sustainable growth.

In the realm of sustainability, Coca-Cola’s focus is on three key pillars: product, planet, and people. While the company strives for responsible product sourcing and environmental protection, the emphasis on people stands out. As Ms. Milly Cheng, CEO of Coca-Cola Beverages Vietnam, highlighted, sustainability is not solely about environmental and product considerations; it also hinges on how a company translates its commitment into action within its system.

Coca-Cola actively promotes gender equality, with a vision to achieve 50 per cent female leadership by 2030. This commitment extends beyond gender; it encompasses a broader dedication to diversity. For instance, the company has empowered over 14,000 women in Vietnam through various programs, including providing clean water and training women in e-commerce.

Furthermore, Coca-Cola supports waste collection workers and promotes diversity across all dimensions, including generational diversity. With Vietnam’s average age at around 32, engaging the younger generation is crucial for advancing both diversity and sustainability. “Sustainability cannot be achieved without people,” Ms. Cheng noted, adding that the company fosters leadership diversity, champions varied voices and cultures, builds organizational collaboration, and empowers individuals through education.

Elsewhere, The PAN Group, one of the leading agricultural and food companies in Vietnam, has navigated numerous challenges in its sustainability journey. Ms. Nguyen Thi Tra My, Vice Chairwoman and CEO at the Group, emphasized that in terms of sustainability, the most critical element is people, highlighting the significance of integrating sustainability into the core values of leadership and organizational culture. “We believe that achieving sustainability is not just about addressing environmental issues but fundamentally about how we engage and empower our people,” she explained. “Our commitment to sustainability is deeply rooted in our organizational mindset, which sees people as the cornerstone of our success.”

As the Group manages a diverse array of subsidiaries, ranging from companies with over 50 years of history to newer entities, this diversity, combined with varying regional cultures and leadership ages, underscores the importance of a unified vision for sustainability.

To tackle these challenges, PAN has formed a Sustainability Steering Committee, led by Ms. My herself. This committee includes leaders from all three of PAN’s core business areas - agriculture, aquaculture, and food processing - ensuring that sustainability strategies are effectively implemented across the organization. “The role of leadership is crucial on this journey,” she stressed. “Leaders must recognize the importance of sustainability and embed it into the company’s DNA to ensure long-term success.”

Ms. My also underscored the role of people in driving sustainable practices. “Our mission to elevate Vietnamese agriculture and food means that every product we produce must meet high-quality standards and contribute positively to the environment and society,” she said. “This commitment is not only about business success but also about fostering a sustainable future for our employees and communities.”

The PAN Group’s efforts extend beyond internal practices. The company actively promotes gender equality and supports various community initiatives. For instance, PAN’s sustainability programs include empowering women and providing clean water to underserved areas, reflecting their belief that true sustainability involves enhancing the well-being of people.

Emphasizing the crucial role of partnerships in achieving sustainable development, Ms. Le Thi Hong Nhi, Head of Communications, Corporate Affairs, and Sustainability at Unilever Vietnam, noted that sustainability must itself be sustainable, meaning that the input costs and the value created for the environment, society, and business should result in a net positive outcome. Such an approach, she continued, is achievable not just for large corporations but also for smaller businesses. However, addressing these challenges requires collaboration from multiple parties.

Since 2020, Unilever has worked with the Ministry of Natural Resources and Environment and nearly 30 organizations to develop a public-private partnership focused on a circular economy for plastics. Despite such efforts, challenges such as plastic waste and the cost of recycled plastics remain. In response, Unilever launched the Vietnam Plastics Circularity Innovation Challenge Program last April. Aimed at resolving issues related to soft plastic waste and recycling, the competition received over 100 submissions featuring practical ideas and technologies. “The results were very surprising,” she said. “We are extremely excited about the outcomes and, most importantly, the innovative mindset of the younger generation in tackling these shared challenges.”

Additionally, Unilever’s recent collaboration with the United States Agency for International Development (USAID) and Ernst & Young on the CIRCLE Alliance, a $21 million public-private initiative, aims to address plastic waste pollution by supporting startups and small businesses in the plastic value chain. The project focuses on reducing plastic use, managing waste, and building a strong circular economy, with particular emphasis on supporting women in informal waste collection roles.

From a banking perspective, Mr. Daniel Small, Head of Structured and Sustainable Finance at HSBC Vietnam, emphasized the importance of partnerships in accessing green finance. In his two years in Vietnam, he has observed the growing adoption of and awareness about sustainability among Vietnamese corporates, extending beyond traditional green sectors such as renewable energy. “This year, we’ve worked on a sustainability-linked loan for a local ports and logistics company, where they committed to gradual improvements in their Scope 1, 2, and 3 emissions, linked to third-party certification and verification,” he explained.

HSBC also supported a Hanoi-based agriculture company with a similar sustainability-linked loan, focusing on reducing greenhouse gas emissions, waste per unit, and improving occupational health and safety.

Mr. Small also pointed out the ongoing interest in the manufacturing sector, where both multinational companies with strong sustainability strategies and local manufacturers exporting to markets with net-zero commitments play a crucial role. He emphasized the importance of partnerships in navigating the evolving regulatory landscape, such as the Carbon Border Adjustment Mechanism (CBAM) in Europe.

“According to the State Bank of Vietnam, green credit is growing at around 20 per cent year-on-year in the country, which is impressive but still represents only about 5 per cent of outstanding loans,” he said. “Of this, roughly 50 per cent is in renewable energy and around 30 per cent in agriculture.”

Challenges remain, he continued, including the trade-off between cost and value creation. In Vietnam, 90 per cent of companies are classified as small and medium-sized enterprises (SMEs), which makes it difficult for them to make upfront investments. He emphasized that partnerships are vital for accessing green finance and navigating these challenges. For companies looking to transition, he advised that starting small and identifying material aspects in their business is key. For example, retailers or fast-moving consumer goods (FMCG) businesses might consider financing recycled packaging or retrofitting buildings to achieve green building certifications. Voluntary standards, like SFC-certified paper or Rainforest Alliance certifications, can also be useful in the absence of local taxonomies.

Bringing everything together in a sustainability strategy involves outlining short, medium, and long-term objectives, and setting ambitious key performance indicators (KPIs). It is crucial to work with banks, third-party consultants, and data providers for support, Mr. Small stressed. “HSBC is committed to being net-zero in our operations by 2030 and in our portfolio by 2050,” he explained. “Understanding our clients’ transition strategies is key, as financed emissions make up most of our emissions. HSBC has been in Vietnam for over 150 years and will celebrate our 155th anniversary next year. We remain committed, partnering with key ministries and experts to offer guidance and share best practices as you embark on this journey.”