Vietnam’s carbon credit market is opening up very large opportunities and receiving strong encouragement from the State. This is a strategic step to drive the economy towards a green and sustainable direction. Many businesses are eagerly learning how this market operates, hoping to turn their environmental protection efforts into a valuable asset.
However, to step confidently into this promising arena, businesses need to understand its core rule: To have carbon to sell, we must first have a surplus.
So how do we create a surplus? The answer lies in the journey of accurate inventory and finding ways to cut emissions within the company’s own day-to-day operations.
THE PRACTICAL CHALLENGE – REDUCE CARBON FIRST, CREATE VALUE LATER
Many exporters today, besides aiming to get ahead of the future carbon market, face a more immediate pressure: implementing ESG and reducing emissions to meet stringent standards such as CBAM or the requirements of international partners.
This is in fact killing two birds with one stone. When businesses focus on reducing emissions to keep their orders, they are at the same time building the capacity to participate in the carbon market later. But to reduce, businesses often run into very specific obstacles:
- How to bring together raw data scattered across electricity, water and diesel (DO) bills, or logistics, into one place?
- How to apply the correct international methodology to convert that data into accurate emission figures?
- And how to pinpoint the right “hotspots” wasting energy in order to prioritise reductions?
FROM CUTTING CONSUMPTION TO OPTIMISING OPERATIONS
Food industry – Transparent data to optimise the supply chain
A processed agricultural products exporter needed to prepare a Carbon Footprint report as required by an international partner. Instead of struggling with complex commercial procedures, the company focused on the technical side: applying the GRI Standards to digitalise data on factory electricity consumption, dryer fuel and logistics transport.
Once the raw figures were transparent, the company not only submitted a proper report to retain its export orders but, more importantly, gained a clear view of its energy transition roadmap to gradually reduce the carbon footprint of each product.
Financial institutions – Supporting businesses in the green transition
A large commercial bank wanted to speed up the disbursement of preferential green credit for sustainable projects. To do so, the bank proactively built the capacity of its internal appraisal team in the GRI methodology and the GHG Protocol greenhouse gas inventory framework.
With an accurate yardstick, the bank can easily support and guide borrowers on how to optimise their production processes to meet emission reduction conditions, unlocking green capital in a genuine and effective way.
VIETESG – WITH YOU EVERY SMALLEST STEP OF THE WAY
Understanding that the emission reduction journey requires thorough technical preparation, VietESG offers an Automated Carbon Accounting and ESG Reporting solution to accompany businesses step by step through the platform: vietesg.com
- Easy raw data collection: Digitalise all energy, fuel and warehousing invoices on a centralised platform, instead of managing them manually in Excel.
- Automatic calculation to international standards: VietESG’s system automatically applies emission factors in line with GRI and the GHG Protocol to convert data into accurate figures, so businesses know exactly how much they emit.
- Optimise to reduce: Using visual analytics charts, businesses can easily identify points of waste and plan effective carbon reductions.
Conclusion: As a global partner of GRI, VietESG’s technology platform saves up to 70% of implementation time and cost. We believe that before thinking about more distant goals in the carbon market, getting the inventory and emission reduction right is the firmest foundation for Vietnamese businesses both to protect their export orders and to be ready for major opportunities in the future.
