BAT, together with Vietnam, develops sustainability

VOV.VN - BAT pursues the philosophy of sustainable development based on the ESG strategy (Environment, Society and Governance) for nearly 20 years operating in Vietnam, responding to macro sustainable goals by the United Nations.

Realizing ESG

The United Nations has identified 17 Sustainable Development Goals (SDGs) to address the major development challenges the people of Vietnam and around the world have been facing. The SDGs aim to end poverty, protect the planet, and ensure that everyone enjoys peace and prosperity by 2030.

Vietnam has so far developed a national action plan responding to the United Nations' SDGs for appropriate implementation.

In addition, this year Vietnam also approved the “National Strategy on Green Growth in the 2021 - 2030 period, envision 2050” with the goal of reducing the intensity of greenhouse gas emissions per GDP and greening economic sectors.

The overall objective of the strategy is that Green Growth contributes to promoting economic restructuring associated with growth model innovation, in order to achieve economic prosperity, environmental sustainability and social equity; towards a green, carbon-neutral economy and contribute to the goal of limiting global temperature rise.

One of the important factors that can successfully implement the above goals and strategies is businesses, especially in the manufacturing sector.

Therefore, over the years firms from global multinationals to small and medium-sized enterprises have developed and implemented sustainable development strategies based on the macro goals of the United Nations as well as Vietnam.

BAT is an example. Globally, BAT is very concerned with biodiversity conservation, saving irrigation water, protecting forests, apart from committing to not using natural forest firewood, improving soil fertility, managing energy, reducing water pollution at the company's leaf growing areas.

In addition, BAT also seeks to raise farmers’ awareness through the implementation of advanced production models, training, intuitive and appropriate training according to the natural and cultural conditions in every region.

All of these activities revolve around BAT’s ESG strategy globally. And in Vietnam, the company has effectively realized this sustainable development strategy.

For instance, in Vietnam, after nearly 20 years of developing tobacco material areas, BAT has had stable growing areas, helping farmers have incomes that are always 30% higher than the investment norm. Meanwhile, over 90% of farmers have maintained partnerships with the company since its first days of operation.

In business activities, the company also focuses on reducing carbon emissions. “We already have a large portfolio of low-carbon solutions, which we are continuing to develop,” said Mr Pham Hung Anh Tuan - Head of Operations, BAT East Asia Cluster.

Up to now, BAT's factories in Vietnam have completely switched to using biomass in combustion boilers, contributing to increasing its rate of renewable energy use in the country to 26% by the end of the third quarter of 2021, doubling the initial plan.

In addition, 100% of the lighting systems at factories have switched to LED lights, saving more than 40% of lighting energy compared to using conventional light bulbs. Using rainwater instead of source water and reusing water for the deodorization system are activities that are being carried out daily at BAT's factories in Vietnam. This helps the plants increase the water recirculation ratio from 26% in 2020 to 31% in 2021.

Talking about the circular economy model of BAT in Vietnam, the effectiveness of the implementation of no landfill waste at factories is the highlight. Starting from 2018/2019 to the first quarter of 2021, BAT's factories in Vietnam have achieved the goal of no landfill waste.

Honored for sustainable development

Effective sustainability applications have helped BAT on a global scale to be continuously recognized on the Dow Jones Sustainability Index and continuously recognized as a Diversity Leader by the Financial Times.

Particularly in Vietnam, having passed the rigorous evaluation system, BAT has been honored in the list of 100 Most Sustainable Enterprises in Vietnam organized by VCCI – VBCSD (Vietnam Chamber of Commerce and Industry - Vietnam Business Council for Sustainable Development) for three times.

“Participating in the program and being in the Top 100 is a very important and meaningful recognition of BAT's efforts in implementing sustainable development in Vietnam. This will be the motivation for us to persistently pursue our ambitious sustainable development goals in the coming years,” said Mrs Do Hoang Anh - Head of Legal & External Affairs, BAT East Asia Cluster, adding that the application of the CSI Index is also a way for BAT to understand and accompany the Vietnamese Government and the business community to contribute to the National Agenda for Sustainable Development 2030.

The goals of BAT's sustainable development activities and chapters will be aligned with the common goals of the Government, to join the business community to contribute to the National Agenda for Sustainable Development. 2030 according to the 17 Sustainable Development Goals of the United Nations.

From the perspective of the Organizing Committee, Mr. Nguyen Quang Vinh, General Secretary of VCCI said that the Corporate Sustainable Index was developed by VCCI and leading domestic and international experts. Designed to provide the business community with an effective management tool and a measure to assess the level of sustainable development in the economic, social, and environmental fields of the business.

“We recognize BAT's contributions to the sustainable development of Vietnam over the years in terms of environment, society and corporate governance,” said Mr. Vinh, adding that the contributions of the business community like BAT will help Vietnam realize the green and sustainable development goals, aligning with the common goals of the United Nations.