Many manufacturing and supporting-industry businesses in Vietnam have told VietESG they are puzzled: they have invested in rooftop solar, optimised their entire production lines to ISO 14001, yet are still rated “not compliant” by major European and American partners in supply-chain ESG audits.
The root of the problem lies in the shift in greenhouse gas (GHG) inventory standards. International partners no longer look only at the direct emissions at your factory (Scope 1) or the electricity you consume (Scope 2). They are imposing strict requirements on Scope 3 (indirect emissions across the value chain) – which accounts for 70%–90% of a company’s total emissions.
Technical details businesses often overlook or cannot substantiate:
- Upstream data: Emissions from purchased raw materials (the largest share but the hardest to measure), and transport and logistics from your tier-2 and tier-3 suppliers.
- Inaccurate emission factors: Vietnamese businesses often use international default factors instead of country-specific factors or primary data. This inflates inventory results and worsens the company’s ESG picture in the eyes of Buyers.
- Continuity and transparency: A PDF report compiled manually in Excel once a year is no longer good enough. Partners need a system that can trace raw data back to its source whenever they audit.
The solution from an expert perspective:
To solve this challenge, businesses need a roadmap for digitising emissions data rather than handling it manually.
At VietESG, our approach is to establish a digital data system (single source of truth) through the vietesg.com technology platform – a software solution recognised by the prestigious GRI organisation as a Licensed Software & Tools Partner. The system helps businesses:
- Automate the collection of emissions data at every stage of Scope 1 and 2, and in particular standardise the complex categories of Scope 3.
- Apply in-depth risk management standards (such as ISO 22301, ERM) to ensure continuity and internal data security.
- Connect production data directly to international reporting frameworks (GRI, TCFD, SASB) , helping businesses move from “coping with audits” to proactively owning a credible green capability profile that secures their position in global supply chains.
Try it now at: vietesg.com
