How do you assess the application of ESG (environmental, social, governance) standards by businesses in Vietnam?

The Vietnamese Government has shown a strong commitment towards ESG over the past few years. Key ESG legislation, policy developments, and regulations driven by the government are successfully promoting ESG-related practices and investors’ growing demand for sustainable investment.

The commitments Vietnam made towards climate action at the 2021 COP26 meeting were a significant factor in our decision to invest in southern Binh Duong province, as we are committed to becoming a more sustainable company across our entire value chain. Our factory in Binh Duong will be our first carbon-neutral facility, using 100 per cent renewable energy.

We are pleased with the Vietnamese Government’s commitment to invest in renewable energy in the long-term, given the release of the Power Development Plan VIII (PDP8), which as the goal of shifting Vietnam’s energy mix away from coal and heavily weighted towards renewables and new technologies such as battery storage, underpinning the target of reaching net-zero emissions by 2050.

Through our various initiatives, we are committed to reducing emissions as we rely on renewable energy, and cutting our solid waste, particularly plastics, and even our water waste. We recently completed the planting of 50,000 trees in Binh Duong, in cooperation with the Vietnam Singapore Industrial Park JV Co. Ltd. This is more than double the number of trees removed for the construction of our factory.

We are proud to be a part of Vietnam’s green sustainability journey and look forward to working together to expand its solar / renewable energy capacity.

What do businesses need to do to effectively integrate ESG criteria into their business development?

Our efforts cover all three dimensions of ESG and integrate corporate responsibility across all aspects of our business. The LEGO Group has always been committed to playing a significant role in building a sustainable future and creating a better world for children to inherit.

At all our sites, we operate according to our global Responsible Business Principles. Not only do we raise the bar for ourselves, we also provide best practice benchmarks for suppliers and partners to work towards, and our approach is to build a sustainable and compliant business and a resilient supply chain.

We invest in significant resources to build a diverse, inclusive, and safe workplace environment to attract, develop, and retain talent. We recently reached an impressive 3 million safe working hours at the construction site, reinforcing LEGO’s commitment to providing a safe workplace for its employees.

We are proud of not only hitting amazing milestones with our project but also about being a responsible citizen to the community, introducing numerous initiatives. We are here to make a long-lasting positive impact for Binh Duong’s community and beyond. Our social initiatives have been benefitting thousands of Vietnamese children, empowering them to reach their full potential with LEGO bricks.

What challenges are businesses facing in promoting ESG criteria in their operations? What supportive policies does Vietnam need to offer to boost the application of ESG standards within the business community?

We are pleased with the support we are receiving from the government and look forward to their continued cooperation.

It is important to galvanize businesses into playing a greater role in achieving national commitments related to ESG objectives. We see opportunities for us to share and uphold best practices with other enterprises and authorities for a clear and comprehensive ESG framework and on what the green future of the manufacturing industry should look like.