Water and waste are two groups of environmental metrics directly tied to environmental permits, operating costs and community relations. In ESG reports, they are measured under GRI 303 (Water and Effluents) and GRI 306 (Waste); in Vietnam, management obligations are set out in the Law on Environmental Protection 2020 and its implementing regulations.
Key takeaways
- Measure water withdrawal, consumption, discharge and wastewater quality by source.
- Classify ordinary and hazardous waste; track the shares recycled, reused and landfilled.
- Regional water scarcity risk and discharge incidents are top concerns for banks and communities.
The metrics to track
| Group | Metrics |
|---|---|
| Water | Water withdrawal by source; consumption; discharge; reuse rate; areas under water stress |
| Wastewater | Quality parameters against national technical standards; monitoring results; exceedance incidents |
| Waste | Volume by type; hazardous waste; recycling rate; treatment method |
From compliance to optimisation
Water
- Install meters by area to detect losses.
- Reuse cooling and washing water; harvest rainwater.
- Assess water scarcity risk by river basin when expanding a factory.
Waste
- Segregate at source and contract licensed waste treatment providers.
- Redesign packaging and processes to reduce rejects (see circular economy).
- Fulfil recycling responsibilities for products and packaging covered by Decree 08/2022/ND-CP detailing the Law on Environmental Protection.
Why do banks care?
Environmental incidents can lead to suspension of operations, administrative fines and reputational damage — in other words, credit risk. Transparent water and waste management records make it easier for businesses to access green credit.
Frequently asked questions
Do small businesses need to report water metrics?
If water is material to the sector (food, textile dyeing, chemicals and so on), businesses should report even if they are small; at a minimum, they should keep consumption data and monitoring results as required by their permit.
How is the waste recycling rate calculated?
It is the volume of waste recycled or reused divided by the total volume of waste generated in the period, based on handover documents with the treatment provider.
Are water and waste metrics included in ESG ratings?
Yes, they are metrics within the Environmental pillar and are particularly important for sectors with a large impact on water resources and waste generation.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
