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DxReports
ESG and Digital Transformation

The prerequisite direction in the journey towards
sustainable development of businesses
The interest of customers, investors, employees, or

business partners on issues related to sustainability,
environmentally and socially responsible business is
increasing. Therefore, it is inevitable for enterprises to
develop according to the trend of commitment to ESG
goals: environmental protection, social construction,
and governance improvement.
However, integrating ESG goals into the development

strategy is not an easy process, requiring businesses to
Overview carefully evaluate ESG goals, and at the same time

develop the appropriate digital solutions to support
these goals. More specifically, businesses need to
assess ESG risks and opportunities, integrate ESG
principles into their digital transformation strategy,
implement digital solutions to enhance sustainability
and improve production efficiency, and continuous
evaluation of the implementation process. The results
not only help businesses optimize production
efficiency, improve brand reputation, but also increase
competitive advantages that bring great growth
opportunities.
According to FPT Digital's 2022 survey, more than 90%

of business leaders believe that developing according
to ESG principles will be an inevitable trend and
become a more important factor for businesses to
succeed in the future. Most leaders expect an average
of 10% to 20% improvement in performance from
consistent application of ESG principles.
It is important for businesses to do it the right way to

ensure that ESG goals are achieved in a sustainable
way, while creating value for customers, communities
and stakeholders, as well as ensuring increased
productivity and competitiveness for businesses.
This report provides an overview, helping businesses to

shape the pillars in the journey of sustainable
development, detailed as follows:
DxReports - Feb 2023 01

DxReports
The prerequisite direction in the journey towards
sustainable development of businesses
FPT Digital's report on ESG and Digital Transformation - The prerequisite
direction in the journey towards sustainable development of businesses,
including:
01 Overview of ESG
(Environment – Social – Governance)
05
02 Sustainable development strategy according to ESG 29
03 Integrating ESG goals with business digital

transformation strategy 43
Analysis
02 DxReports - Feb 2023 03

01 - Overview of ESG (Environment – Social – Governance) 01 - Overview of ESG (Environment – Social – Governance)
ESG is a global trend that cannot be 04 trends promoting ESG goals in the
separated from the core strategy and development orientation of enterprises
business activities of enterprises “Over the next five years, all investors will measure the impact of a business on society, governance and the
environment to determine the value of that business.” - Larry Fink (CEO BlackRock).
E 01 Consumers, employees, investors, etc. expect companies to play a bigger

role in being proactive in implementing ESG goals.
Pressure on demand $51 billion was invested in ESG-impacting funds in 2020, more than
for green shopping doubling other investments within a year.
and consumption
Environment 02 The Covid-19 pandemic has exposed many vulnerabilities in the global
economic and social system and the adaptation of the ESG strategy on all
COVID-19 reflects three factors of environment - society - governance has proven its
the organization's effective adaption in combating the pandemic and subsequent volatile
brand values, driving environment.
innovation in the new 69% of businesses have plans to change company policies and practices
to be in line with ESG goals to adapt to potential problems in an
normal
unpredictable environment over the next 5 years.
03 At the COP26 conference, Vietnam was one of the countries with a strong
Social Governance commitment to achieve net emissions of 'zero' by 2050. This was further
Net-zero goal and reaffirmed by the Vietnamese government COP27.
COP26, COP27: Limit More than 90% of the global economy has committed to net zero
global warming to 1.5 emissions.
S G degrees Celsius The world's leading group of developed and emerging economies (G20)
are required to be exemplary, rigorous and responsible for 75% of
emissions.
04 Each organization needs to select the ESG concept that aligns with its
The term ESG is often The ESG Index (Environment - environment, Social - society and
business strategy so that it can maximize its potential in driving its
Governance - corporate governance) measures factors related to the Explore the path of
referred to related terms business model.
direction of sustainable development activities of enterprises. These
business operation in The inevitability of the production revolution towards sustainability:
such as Sustainability; CSR; indicators are created to guide organizations and businesses beyond
the new era Towards green processes and products.
Community relations; Social profit goals into the broader agenda of climate, society and
The global success rate for sustainability initiatives is currently low, at
governance.
investment; Environmental just 4%. Therefore, businesses need to invest a lot of time and effort to
compliance. meet challenges and difficulties, pursue new opportunities through
Investors value the integration of social and environmental values
drastic strategic changes, innovate products, while building innovative
into corporate profits regarding their investment selection instead
partnerships.
of just considering the profitability or risk brought by investment
opportunities.

01 - Overview of ESG (Environment – Social – Governance)
Current status of ESG in Vietnam

The main ESG topics Vietnam is aiming for
Environment Society Governance

The national strategy on green growth in the 2021-2030 The Labor Law (2019) clearly states the rights, obligations and responsibilities of The set of sustainable development indicators (VNSI21 – HOSE -2019):
period, with a vision to 2050, promotes economic restructuring employees; as well as the labor relationship between employees to build a healthy and Determining sustainable development standards for listed companies.
in association with growth model innovation, economic developed labor market, defining issues such as: Support institutional investors and individuals to identify businesses with
prosperity, environmental sustainability, and social balance. Discrimination, forced labor, sexual harassment in the workplace. "green" characteristics for investment.
Directly affecting the life and health of the workers involved in the working process. Define environmental, social and governance best practice criteria.
The National Strategy for Environmental Protection to 2030 Violation of the rules in the contract, discipline and labor rules agreed previously.
and Vision to 2025/ The National Strategy on Climate Change Labor dispute, strike. The Code of Corporate Governance provides guidelines and best practice
to 2050 provides specific goals, tasks and solutions to adapt to recommendations for public companies, requiring the involvement of the
climate change and reduce damage, vulnerability to disasters The Law on Protection of Consumer Rights (2023) clearly states the principles and
board of directors, executives and regulators, independent auditors and
and climate change. policies to protect the interests of consumers, as well as the rights and responsibilities
financial boards, to improve their performance and facilitate access to capital
of consumers; responsibilities of business organizations and individuals towards
per capita.
The circular economy development project (2022) implements: consumers, thoroughly grasping issues such as:
Principles and policies to protect the interests of consumers. Establishment of a National Steering Committee for the Implementation
Reduce the intensity of greenhouse gas emissions.
Rights and responsibilities of consumers (especially vulnerable groups - children, of Climate Change Commitments after COP26: Strengthening
Greening the economic sector.
women, the elderly, people with disabilities and people from ethnic minorities) and coordination between ministries and localities with international
Reduce energy consumption.
business organizations and individuals. organizations, development partners and other countries in response to
Increase the proportion of renewable energy, forest cover,
Activities of social organizations participating in protecting consumers' interests. climate change.
waste recycling, the localization of agricultural - forestry -
Settlement of disputes between consumers and business organizations and
fishery products - industrial production.
individuals.
Improve people's quality of life and resilience.
Government Enterprise
Vietnam has given a clear signal after creating a buzz at COP27 60% of the enterprises which put ESG into practice are small-medium sized, of which the majority are in the early stages of
(2022): raise morale and continue to make strong commitments the ESG journey.
to meet corresponding goals and roadmap to bring net emissions
to Zero in 2050. Businesses tend to prioritize the "G" aspect over the "E" and "S" aspects:
62% of businesses ranked "Governance" as their top priority in the executive program. In fact, leaders believe that
Pioneering in energy transformation along with green and
focusing on "Governance" will help them make better decisions for both "Environment" and "Social" areas.
digital transformation: In addition to implementing collective and
66% of enterprises have applied the ESG program, but only 24% say they have a clear governance structure with ESG
comprehensive measures in the field of energy transformation,
commitments and obligations.
Vietnam needs the support of the international community in
resources and technology to both ensure energy security for
ESG indicators play a practical and important role in helping businesses achieve desired results. Moreover, ESG
economic development and reduce greenhouse gas emissions.
indicators also help businesses demonstrate the impact on their strategy and operations, thereby building a good brand
image with consumers, investors and the government. On the other hand, businesses are still facing limitations such as:
Only 28% of businesses can use the comprehensive index to track trends and ESG implementation.
71% of businesses lack understanding of what data they need to report.
70% of businesses have no or very little reporting, 36% need to depend on other 3rd parties to publish their own ESG
reports.

01 - Overview of ESG (Environment – Social – Governance)
Achieving the ESG goal will bring

businesses new competitive capabilities
and towards the goal of sustainable
development
Target Effective ESG Strategy Weak ESG Strategy
Enhance the ability to attract B2B and B2C customers with better Reduced number of customers due to an unsustainable strategy;
Outstanding and sustainable
products and services, sustainable growth in all aspects. loss of market share compared to products that are not
growth opportunity Gain better access to resources through stronger community and environmentally friendly, do not meet social standards for using
government relationships. the workforce.
Loss of access to resources due to poor community relations and
workforce.
Less energy consumption. Increased waste volume and higher waste disposal costs.
Reduce fuel costs
Reduce the amount of water needed. Increased cost for packaging cost.
Relieve legal pressures, thereby opening a new direction for a larger Subject to limitations in the deployment of products and services.
Get support from
development strategy. Increase the cost of environmental treatment.
government policy and Receive priority in government support policies and programs on
management environmental protection, social development,...
Boost employee motivation and creativity. Less supported by consumers and society, limiting the source of
Improve employee
Enhances ability to attract talent through greater social credibility. talent that can be recruited from outside.
productivity Unable to retain talented human resources due to weak
development strategies and goals.
Improve return on investment through better capital allocation, The risk of not keeping up with competitors in the same industry
Optimizing investments
such as investments in factories and equipment that are ESG- who are having a more comprehensive ESG strategy.
and assets compliant over the long term. Investments at risk of becoming stranded assets due to
Avoid investments that may not pay off in the long run due to environmental issues.
environmental issues.

ESG and key aspects of concern The potential to create business value
ESG factors are not fixed but are always updated due to changing stakeholder expectations, technological from the pillar "environment"
advancements, increasing regulatory requirements and changes in the business landscape. Businesses that
prioritize ESG goals in their business strategy need to continuously evaluate their performance and make
improvements in each aspect to stay ahead of industry trends and meet growing stakeholder expectations. The "environment" pillar in the ESG program demonstrates how you manage and mitigate the impact of your
Each element of ESG can encompass a variety of topics and initiatives, such as the following: business operations on the environment, including in direct operations and across the entire supply chain.
The assessment of environmental issues in the set of ESG indicators of the enterprise helps to assess the risks
and opportunities of the business; increase transparency and help investors and shareholders better understand
the environmental protection of businesses, helping to increase competitiveness and promote sustainable
development in the long term.
Environment Society Corporate governance Community Benefits

Climate change: Workforce and Human Quality of leadership team:
Resources: Coping with Climate Change: Protection of natural resources:
Carbon emissions. Skills and qualifications. Limit and overcome the effects of climate Protection of biodiversity and natural
Limit global warming to Inclusion and diversity. Diversity, flexibility and change such as natural disasters (floods, ecosystems.
2 degrees. Supply chain manpower. innovation. droughts, typhoons, earthquakes, tsunamis,
Fossil fuel reserves. Health and safety in the Leadership. etc.) and changes in livelihood environments
Energy efficiency. workplace.
(in farming, aquaculture, etc.).
Renewable energy. The gender income gap.
Incentives for the
Pollution Restrictions: Improving human health:
management team:
Reduce solid waste. Improve the transition of food
Resource management: The value chain includes Equity between income Reduce packaging materials and waste. production (water resources).
suppliers, customers, and capacity. Reduce e-waste. Reduce greenhouse gases (GHGs),
Water management. stakeholders, etc. Terms of severance carbon emissions and other harmful
Raw materials. regime. emissions by replacing fossil fuels with
Power source. Product health and
renewable energy solutions.
safety.
Shareholders' rights:
Data security.
Environmental impact:
Data safety.
Air quality. Sales and pricing.
Management
responsibilities to
Business benefits
Ecological impact. shareholders.
Waste management. Society and community: Shareholder actionability.
Voting rights. Increase business opportunities, drive growth: Preventing rising operating costs (the
Community relations.
real cost of water, carbon and raw
Social impact. Meet the green lifestyle needs of multidisciplinary
materials):
Human right. customers.
Cutting resource costs has the potential to
improve operating profitability by 60%.
Reduce regulatory interference: Improve employee productivity:
Gain credibility and trust, so it is easier to Attract and retain quality employees by
propose support from the State, and be willing instilling a sense of purpose.
to take bolder steps.
Investment and asset optimization:
Allocate capital to more promising and

sustainable opportunities in the long run.

Success stories
Danfoss commits to carbon neutrality

by 2023
51%
1933 Energy intensity in 2022 is lower than in 2007
Danfoss is a multinational
company founded in 1933
headquartered in Denmark with
104%
over 40,043 employees globally.
Danfoss is one of the world's
leading providers of energy-
saving and climate solutions
based on technology and Energy productivity in 2021 is higher than
innovation. In 2020, Danfoss set in 2007
a goal of being carbon neutral
across all of its global
operations by 2030 and having
30% of women in leadership 250.000 m2
positions by 2025.
Danfoss' headquarters in 25%
Denmark is the largest
production facility, covering an
1974 CO2 neutral global electricity
area of more than 250,000 m2 consumption
Danfoss has developed the
built with electricity and heating
Danfoss Postgraduate Program
systems with zero carbon
2021
since 1974, giving new master's
emissions. Danfoss replaced
graduates worldwide the
petroleum-fueled cars with
opportunity to participate in
electric and hybrid cars,
In 2021, Danfoss focused on
reducing energy consumption
in its buildings and processes
installing an additional 184
charging points at facilities
globally, especially in Denmark.
Danfoss strategic projects and
develop international careers, as
well as produce countless
42%
closer to carbon neutrality and Danfoss top leaders. Each year
CO2 emissions in 2021 are lower than
eliminating the use of fossil about 25 students are selected
since 2007
energy sources for heating.
12%
from more than 20 different
Danfoss already supplies green countries with equal ratios of
electricity to all of its locations men and women. The Danfoss
in Denmark and Germany. The With efforts to save and reuse Postgraduate Program
company reduces energy energy resources, Danfoss demonstrates Danfoss' interest
demand by ensuring that no reduced its energy intensity by in developing young talents with
heat is wasted but is recovered
and reused. Many Danfoss
plants have phased out hydronic
heating systems and replaced
12% in 2021 compared to 2020
and 51% lower than in 2007.
Energy productivity in 2021
equality of origin and gender,
encouraging their differentiating
contributions to Danfoss from
20%
improved by 104% compared to the very beginning of their of women leaders
them with natural gas. 2007. careers.

Success stories
Verizon aims for net-zero emissions

by 2035
6.3% & 7.7%
In 2020, there was a 6.3% reduction in operational
emissions and a 7.7% reduction in value chain
emissions in 2021
Verizon Communications Inc. is

an American multinational
telecommunications corporation
headquartered in New York,
providing network-based voice,
35.5 million
data, and video solutions and
services.
AI Verizon also focuses its resources on accelerating the transition to a green

grid across the United States. By entering into a long-term purchase
agreements from solar and wind energy under development, Verizon
Reuse and recycle 35.5 million pounds
of e-waste in 2021
demonstrates its efforts to provide developers of renewable energy

Verizon has applied artificial
facilities with the capital they need and long-term revenue guarantees.
intelligence (AI) to optimize
system energy consumption,
cooling at network facilities and
telecommunications equipment.
Verizon also replaced network 35.5 million
$2.5 billion
cables from copper to fiber
In 2021, Verizon reused and recycled about 35.5 million pounds of e-waste,
technology to minimize the
including 1.79 million pounds of plastic and 3.4 million pounds of lead-acid
carbon footprint of electricity
batteries generated from cell phones, chargers, set-top boxes, network
consumed by its network.
devices, batteries and other plastic components. For e-waste that cannot Invest $2.5 billion annually in employee health and
Verizon's data centers and
be reused in its electronic parts, Verizon will pass them on to suppliers or wellbeing
buildings are also intelligently
partners to recycle them responsibly. Verizon also strives to reduce plastic
designed and managed to
waste in its products and product packaging by actively using recycled
achieve optimal energy
plastic, eliminating the use of single-use plastic packaging.
efficiency. In 2020, Verizon
reduced its operating emissions
by 6.3% and value chain
emissions by 7.7%. Verizon aims
to achieve net-zero emissions
across its operations by 2035
through optimizing network and
$2,5 billion $185 million
facility energy efficiency and
In 2021, Verizon invested $2.5 billion to provide benefits and health care
transitioning to renewable
services to more than 485,000 of its employees, eligible retirees and their Invest 185 million USD to develop
energy.
dependents; $185.5 million went in to upskill and develop its employees. skills for employees in 2021
Verizon is also committed to paying male and female employees as well as
different races and ethnicities in the United States.

The potential to create corporate value

from the pillar of "society"
Community Benefits
Enhance national image:
Trade Facilitation.
Increase competitiveness and move closer to the culture of international integration.
Addressing social inequalities in a multidimensional way:
Taking the economy as the center, persevering and making efforts to develop
production forces: Creating diversified and abundant material wealth, improving the
quality of spiritual and cultural life for people, building social public infrastructure,
perfecting the social security system.
Ensuring the people's political, economic, cultural and social rights and interests:
Promoting the construction of socialist democracy and the socialist rule of law,
perfecting the income distribution regime, perfecting public services, etc.
Support the promotion of equal education and propaganda.
Business benefits
Access to a wide range of investment opportunities and develop stakeholder

relationships with your business:
Build relationships and trust with stakeholders (customers, suppliers, investors,

communities, etc.) by working towards and sharing common cultural values and
The "social" pillar looks at how businesses manage
46%
ethical beliefs.
relationships, including their interactions and
Improve the ability to attract foreign funding sources when taking the goal of solving
impact on the workforce and community.
social problems, for the common benefit as a core value.
Attract good workers, with good expertise, a sense of responsibility and high
A number of social factors can lead to
Investors find the 'social' pillar to be the most commitment.
unpredictable effects:
difficult to analyze and incorporate into
Brand positioning and brand reputation:
Workforce Imbalance: Creates a scarcity of investment strategies, due to:
skilled employees or discrimination in labor. Maintain customer loyalty with highly sustainable products and services and
Lack of consensus across sectors when
Risks related to product safety: Shortage of meaningful business operations.
defining sector categories and content.
goods, supply of poor quality products, etc. Social issues are often less tangible with Effectively handle economic problems:
Future demographic changes: Human less complete data that can show how they
resources imbalance gender, age or geography. Increase profits, cut costs in the production process by applying green-clean
affect the business.
technology.

Success stories
Gusto balances social goals in ESG

through human resource management 80%
Over 80% of employees participated in
community work for the third consecutive
year from 2020
60%
60% increase in the number of employees
who identify themselves as African-
American/Black compared to 2020
$494 million
$494 million in cash and in-kind
contributions to Cisco community
Gender inequality remains an Gusto is a payment software After the campaign, Gusto programs and the Cisco Foundation
existing social problem, for manufacturing and services made improvements as the
example, the gender pay gap company, based in San percentage of female
occurs when companies tend Francisco, USA. Julia Lee, one engineers increased to about
to make work arrangements of Gusto's first female 20%, the average among
simpler for women even
though there is no difference in
qualifications and other
engineers, petitioned that there
were always communication
problems between her and her
engineering teams of software
businesses was 12%, which is a
commendable change for
39%
standards by job compared to colleagues, as other engineers Gusto in a short period of time. 39% reduction in greenhouse gas
men. This is the case with frequently disapproved of her emissions compared to 2019
software company Gusto, opinions due to her lower
where female engineers make position. As a result, Gusto
up just over 5% of the initiated an internal HR
engineering team. campaign aimed at reducing
gender inequality by
prioritizing the hiring of female
engineers, removing men-only
$11 million
2022
job advertisements, and
promoting the empowerment Pledged $11 million in funding for climate
of women to take more key solutions through Cisco Foundation
positions in the company.

Potential to create corporate value from

the pillar of "governance"
Community Benefits
Foundation for development:
Establish rules and follow certain procedures and standards to maintain consistency in
how individuals and organizations operate and work. From there, it helps to increase the
ability to scale up, promote development.
Reduce waste, risk and corruption:
Invest and effectively allocate time, budget and human resources.

Increase the level of transparency, trust and integrity, creating a friendly living and
working environment.
Promote environmental and social initiatives:
Form an ideology and culture for collectives, communities at local and national levels
through clear policies and processes.
React quickly to deal with any negative moves.
Encourage positive behaviors and activities towards aspects of ESG and sustainability
goals.
Business benefits
Prioritize governance benefits in the event of other conflicts, to:

The pillar of "governance" refers to policy-making, Ineffective corporate governance is seen as the Optimizing returns for shareholders.
the allocation of rights and responsibilities among root cause of violations of environmental and Show optimal respect and support to stakeholders.
different participants in the corporate social commitments:
organizational structure (board of directors, Improve financial performance:
managers, shareholders and stakeholders) – Disjointed, small, inadequate anti-
Combine with the pillar "society: Expand the range of views, make better judgments,
influencing the decision-making process. corruption practices.
encourage innovation, be more flexible.
Lack of governance mechanism leads to
Scaling: Supported by the Government with many policies, helping to open up new
Leaders ensure that ESG efforts translate into system losses.
development opportunities.
concrete actions and significant changes to the Leaders are not fully equipped in terms of
operating systems. skills, experience and knowledge...
Provide a foundation for long-term value creation based on organizational
competencies:
At the same time, limit risks as well as take advantage of opportunities in meeting ESG
goals.

Success stories
Hafslund Oslo Celsio deploys Industry-

Cloud platform, helping to reduce waste
to the environment
Artificial
intelligence
Manage costs, revenues and
environmental impacts of products
or services or forecast operations
in advance to make appropriate
recommendations. For example,
artificial intelligence (AI) can help
Periodicity by optimizing the schedules and Full implementation
routes for field service technicians
Recircular product lifecycle Typically, a company will only
to reduce driving distance or fuel
management aims to minimize implement the financial module of
consumption.
waste such as managing the data its ERP system, but sustainability
required to manufacture products, requirements mean they should
hierarchical planning for decisions also consider human resources
and costs related to reuse, and supply chain modules to
recycling, remanufacturing, and document operations and manage
life cycle extension or disposal. them more closely. This helps to
address social and governance
factors in the ESG framework by
Hafslund Oslo Celsio is an
understanding the company's
energy company in Norway,
operations or suppliers'
applying Industry - Cloud
employment situation, community
platform to optimize ERP
development, etc.
(Enterprise Resource Planning)
systems. Since then, the
company has improved
efficiency in green energy
production processes,
developed carbon capture and
storage, and reduced waste to
the environment. This platform
includes the following 3 main
features:
Thereby, the ERP system on the Industry-Cloud platform helps manage the service and maintenance of existing
biofuel waste incineration plants and heating networks provided by the company. It also supports financial
management, human resource management, procurement and contract management to enable Hafslund Oslo
Celsio to better handle environmental and social issues with suppliers and contractors.

Success stories
FPT optimizes operation management

thanks to big data mining application
FPT's experts collect and import data

from financial, CRM, HR, and marketing
systems, etc. to the Data Lake repository.
The data will then be processed,
analyzed and provided to the end user.
As a result, FPT's departments can easily
query large volumes of data, gaining
valuable insights to act on immediately.
In particular, this project was applied

during the COVID-19 period, helping FPT
optimize its operation and maintain its
growth momentum in difficult times.
In 2020, the FPT Data Lake project has been applied by FPT Corporation throughout the group. Accordingly, FPT
By the end of 2021, FPT recorded revenue and profit before
has implemented nearly 50 internal digital transformation projects, with the objectives of optimizing operation tax respectively
management such as:
28.215 5.206
Make data-driven
decisions for financial
Deploy paperless and
cashless offices.
Self-service service
with the goal of
Understand your
customers and
billion VND & billion VND
systems, CRM closely monitoring enhance your digital
customer systems, operations and experience.
HR, marketing... real- increasing business up 19.4% and 19.7% year-on-year. This is a
time operation. efficiency, increasing remarkable achievement in the context of
productivity, reducing difficulties during and after the pandemic
operating costs, as well as many unpredictable global
towards digitizing fluctuations, helping FPT become more
100% of internal determined to build a stronger Data Lake
operations. system, providing more services not only
for the corporation but also for
customers, partners and stakeholders to
optimize operations.

02 - ESG-based sustainable development strategy
4 conceptual basis for effective

ESG strategy implementation
1. Integrate strategic issues, particularly those

associated with company interests and long-term
viability into business strategy. This will be done
3. Increase the oversight responsibilities of key
stakeholders, including directors with relevant
experience and expertise in understanding
in three sectors: ESG opportunities and risks.
Assign responsibility and supervision based

Unify specific and detailed definitions of ESG
on the importance of each activity.
in business terms, especially risks,
opportunities, and financial performance, as Examine the usefulness and monitoring of the
well as their importance to the performance ESG by defining necessary information flows
of the organization. and establishing reporting governance
mechanisms.
Employee recruitment and selection,
including key qualities and skills. Incorporate ESG into the board's strategic
oversight process.
The culture, ideology, behavior, attitudes, and
operational processes of the organization.
Survey and ESG program To effectively integrate ESG into strategy and
operations, management must understand the
In accordance with ESG values, the
assessment organization recognizes its mission and communication importance of ESG to the long-term
development of the business.
development orientation, thereby assisting in
the creation of a solid framework for all future and promotion
actions.
Determine the ESG opportunities and risks that
4.
are strategic to the organization:
Communicating the company's ESG program to
Determine and evaluate all ESG issues that

may have a material impact on the
2. all employees, investors, and other stakeholders
to ensure understanding and accountability,
thereby contributing to a faster implementation
organization and its stakeholders. process for good results.
Screening and prioritizing a number of
problems that need to be solved in order to Effectively and sufficiently communicate
keep the business competitive. messages to each specific audience,
including employees, consumers, the
community, regulators, and investors,...
An appropriate ESG strategy and roadmap that
is integrated with the business strategy and Proactively provide information and reports
operations and can bridge the gap between the on the company's ESG program results
organization's current ambitions and actual through various media channels such as stock
actions must be developed. records, annual sustainability reports,
website, and so on. Leadership
Incorporating Communication must have a strategy and supervision
ESG Goals detailed plan for each stage, as well as
continuously evaluate and adjust, to ensure the
success of the enterprise's ESG program.

02 - ESG-based sustainable development strategy 02 - ESG-based sustainable development strategy
CATEGORY 1
Surveys and evaluations
The term "ESG" refers to important environmental, social, and governance

issues that investors, employees, customers, and other stakeholders are
particularly concerned about. Their meanings, however, would be flexible
and will change depending on the characteristics and priorities of each
collective or community. As a result, as a first step and a solid foundation,
the organization must have a clear visualization of the overall ESG strategy's
desires and aspirations.
01/ Determine current

sustainability
issues
Indentifying the current ESG
positions and evaluating
performance using ESG
benchmarking tools (backside and
upside).
03/ Confirmation of
validation
Receive external third-party review
and evaluation to ensure the
positivity and objectivity of the set
goals.
Companies in the same industry and

sector should be monitored and
evaluated.
Conduct an inventory to identify and

assess all business-critical ESG
issues that may have an impact on
the company or its stakeholders.
02/ Determine the

priority order
Determine the importance of the
issues identified in step 1 to the
organization and its stakeholders.
Companies in the same industry and

04/ Management
discussion and
approval
It is the responsibility of units and
departments to participate in
discussions and contribute ideas.
Specific tasks are approved and

field should be followed and assigned by management and
consulted. leadership.

CATEGORY 2
Integration of ESG objectives

Many organizations "claim" to be committed to ESG goals, but in reality, they make incremental
improvements to environmental, social, and governance programs. They only want to build a
positive brand image with customers. Integrating ESG objectives with core business values
allows an organization to make changes that are consistent with its DNA.
01 02 03
Define ESG issues and goals Recruiting and selecting a new Establishing and maintaining an
consistently and consistently generation of employees in organizational mindset and
accordance with the culture at all levels, divisions, and
organization's ESG perspectives, departments
Create an ESG framework to avoid developing a
development perspective that deviates from the positions, and values
organization's growth path. Integrating ESG into the DNA of the organization: Create a
roadmap and plan the details for the transformation so that
Create a detailed picture of the organization's desired - Educate internal and external stakeholders to raise
ESG elements are present in all aspects of the organization.
actual performance using standard metrics: To measure awareness and encourage participation: Because ESG is a
business performance, monitor and report comparable data new field with a small pool of experienced talent, employers Train employees to develop the skills needed to facilitate
to internal organization (board, management, and staff) and must first educate themselves. Deeply understand and keep change:
stakeholders. up with the market development speed of the ESG/
sustainable market in order to provide potential candidates Consider the soft skills, technical skills, personality,
with not only knowledge but also inspiration. qualities, and ESG mindset required to support the
Make your business policies and practices clear and overall ESG priorities of the organization.
transparent: Align the talent system for transformation: Form a key
ESG team in charge of managing the process, progress,
Communicate messages, update corporate values, and
and outcomes of the ESG initiative's implementation.
set sustainability goals through media platforms and
annual reports. Encourage cross-functional collaboration: Encourage
greater collaboration among stakeholders (both inside
Mention and emphasize the benefits that employees will
and outside the company) to ensure the success of ESG
receive, as well as the skills, abilities, and roles that the
initiatives.
employer is expected to provide.
Motivate and recognize socially responsible individuals and
groups.

CATEGORY 3
Communication of ESG ESG programs help enterprises achieve sustainable business performance, at the same time,
positively contribute to society and the environment. However, ESG is not only implemented
for a while, but is broken down into several stages along the development path of the business.
program in business To make sure the ESG program becomes effective, communication is an indispensable element
and can be followed by some of the following key steps.
/01 /02
/05 /06
Defining the Defending the
Communication’s target Communication’s Creating a detailed Reporting a result and
message communication adjusting the next step
In the perspective of Marketing and
Communication, every ESG strategy
Determining the overarching message for
implementation activities will help the
the entire ESG program at the same time
brand becomes better by building a Determine the content frameworks and
as the message for each step. During the implementation process, it is
positive image, increase customer’s trust, modes of expression that are suitable for necessary to continuously evaluate and
and attract more customers and The overall messages alway presents the the release channel and target audience. benchmark the set goals.
investments. long-term vision and strategy of the
Identify resources that can be involved to After each stage, businesses need to
business's program. Moreover, the annual
Thus, brands need to determine the ensure effective communication.
messages present the smaller goals that measure the results achieved, create
communication target through the overall
need to be achieved this year. summaries and reports to send to all
program, and for each phase of Based on the content frameworks and
relevant audiences to achieve the highest
implementation to maximise exploitation resources implementations to identify a
communication goals.
the advantages that the program brings schedule that attaches with KPIs on the
to businesses. /04 production, and release of media Based on the evaluation of the results,
products to ensure that communications businesses can adjust the communication
Defending the goals are achieved with high efficiency. At strategy, change the budget, update the
/03 the same time, set up work management items in the communication plan,... to
communication to monitor the monitoring the progress improve the effectiveness of its ESG
and quality of budgets and related
Defending the channels expenses.
program.
audiences Identifying the communication channels

to ensure that the information is wide-
Identifying audiences who needed to separate to all audiences.
receive the messages and information
It's important to assess whether current
about ESG’s program. It could be
channels can be impactful enough to get
enterprises, suppliers, partners, and
the message across all levels of the
stakeholders.
business.But if the content transfers to
The identification of customers will help audiences is not enough, business needs
businesses move to the next step of to develop more channels. In digital
defining channels and creating transformation, there are digital initiatives
appropriate content. For employees, it is that will be combined with functions, not
necessary for business to communicate only serving professional operations but
with them, so that people who work for also becoming new communication
businesses will actively participate in the channels. Businesses need to take
implementation of the program, as for advantage of this specialist to bring the
stakeholders, ensuring that the message most optimal ESG messages to
is clear, they need to understand, and employees.
support enthusiastically. All together to
ensure the success of ESG programs.

CATEGORY 4
Supervised by management Clearly classifying the roles and enhancing the

responsibilities of supervision by management
that aim to implement the ESG strategy
effectively, and seamlessly.
General director
Make ESG part of the culture, a measure of performance, part of the decision-making process about how
the company operates on a day-to-day basis.
Developing an attractive ESG risk strategy (circular economy) that is incorporated into the company's
strategy.
Inspiring each business unit.
Managing Director Marketing Manager

Ensure that cooperation in the price chain and elements in the social sector are agreed within Integrate ESG-based marketing strategy with the company's brand image.
the organisation. Ensure that the company's message about the ESG mission accurately reflects what is
Apply advanced technology to transform supply chains to become more sustainable in the face happening in the organisation .
of strong social and environmental impacts. Develop a story that effectively communicates the establishment and communication of ESG
Update new ESG regulatory reporting guidelines and requirements to ensure compliance. goals throughout the product life cycle and business units.
Chief Financial Officer Product Manager

Bridge the ESG reporting gap with investors, e.g. policy transformation risks, technology Sustainable product design and development based on product lifeline analysis.
impact, regulatory framework – quantifying financial impact and shareholder reporting. Application of transparent design practices: A good understanding of the materials used to
Oversight of Accounting Standards:International Organization for Financial Reporting design the product and how suppliers who supply those materials are selected throughout the
Standards (IFRS), Committee International Accounting Standards (IASB) and the International entire value chain of the product development process.
Sustainable Standards Board (ISSB),... Research and improve product packaging.
Promote the integration of ESG risk into your overall risk management program.
Chief Legal Officer Director of Human Resources

Assess stakeholder pressures and risks to the organisation on ESG aspects. Develop processes and policies to enable effective and long-term remote work models.
Build and develop a framework for decision-making around relevant sustainability questions. Performance measurement update to assess an individual's contribution to an organisation's
Define the role of the legal department: The optimal level of participation depends on the ESG goals.
industry in which the organisation operates, the risks it faces in each sector, and the mitigation Attract talent from different backgrounds.
strategies required to manage those risks. Reflect and implement the organisation's DEI (Diversity, Equity, and Inclusion) goals.

Some points of error should Excessive Lack provision of

concentration to leader and manager
be avoided in management ratings
When the ESG management
strategy of a business does
ESG strategy
When focusing too much on
not receive the supervision of
the ranking of a company
leader and manager, it will
instead of developing a
lose the key to success due
suitable strategy which is
gradually away from the flow
promising and risk-tolerant,
of business activity of that
then the ESG program is not
business and away from the
continued, which then leads
chapter goal ESG submission.
to a failure to achieve long-
term goals.
Lack of orientation Pretending ESG is

approach communication
effort
Lacking of orientation
approach in ESG
Communication can help the
management, it will be easy to
brand deliver their message to
make the implementation
customers, but it’s not an
process rigid, difficult to
alternative to a strong
adapt if encountering
governance system and
situations that fluctuate from
realistic action plans to
reality leading to failure to
achieve ESG goals.
achieve the set goals.
ESG disconnection Inconsistencies

from business’s across the
strategy enterprise
An ESG strategy that does not The lack of an enterprise-wide
consider the strategic strategy and coordination
objectives of the business and leaves significant gaps in your
does not link to the main ESG management programs
strategy of the business will with potential risks.
not meet its purpose.

03 - Intergrated ESG Goals with Digital Transformation Strategy
Digital transformation positively

impacts to enterprises’ ESG goals
Enterprises take
Digitization transformation activities Impact on ESG Goals

ESG as core
value
Construct sustainable operations and processes, thereby attracting the interest of shareholders,
for digital initiatives tends
to grow and achieve
Digitalize and becoming standard in the industry or improve the resilience of enterprises
sustainability goals
automation operate
Emissions reduced
Establish new distribution channels, break the economics constraints to expand the coverage, scale and
Develop product and ability to access products and services at a reasonable cost
45%-70%
when combining human
digital services
factor and sustainable
business model
Applying new technologies (IoT, Blockchain, Cloud) to monitor environmental and social impacts
Monitor environmental throughout the value chain of enterprises to optimize management decisions and actions
Energy consumption reduced and social impact

5%-10% through technology
Capital, supply chain and Applying AI and advanced data analysis to collect and analyze all data related to the environmental and
operation costs minimized Collect and analyze data social impacts of businesses in order to make improvements and approaches in line with market trends
10%-30% on environmental and

social impacts
Productivity improves
10% Data sharing and Create new models of cooperation across industries to jointly develop solutions to solve environmental
and social problems, gather different resources, fill gaps and access new market
ecosystem

03 - Intergrated ESG Goals with Digital Transformation Strategy 03 - Intergrated ESG Goals with Digital Transformation Strategy
01 Digital Twin Identify accurately emission sources based on

real time.
Extract reliable information for analysis.
Potential technology Create verifiable, immutable disclosure process

for emission reports.
applied in ESG strategy

02 Artificial Intelligence Provides analytics to measure enterprise's ESG
actions and commitments in real time, for example
(AI) measuring controversies around environmental
policies, working conditions, and more.
Collect satellite and sensor data to determine
environmental impacts and physical risks: verify
enterprises' carbon emissions or to analyze their
impact on ecosystems.
03 Supply chain With the characteristics of sharing potential, anti-

counterfeiting structure and absolute
blockchain transparency, blockchain technology helps to track
and trace the origin of goods, materials and
products throughout the supply chain. These
features help businesses easily implement
activities related to environmental and social
factors of ESG.
04 Internet of Things IoT sensors assist in tracking energy indicators and

real-time carbon data in supply chain to help
detect unworthy losses.
In agriculture, IoT solutions help reduce the
amount of water used, fertilizers and pesticides,
even reduce the impact of greenhouse gases
caused by livestock discharged through animal
health monitoring. In transportation, IoT solutions
help shorten delivery routes, reduce fuel
consumption, predictive maintenance by applied
IoT technology can help extend the life of critical
equipment, thereby helping reduce waste into the
environment.
05 Automation Reduce unnecessary staffing costs, and at the

same time improve employees' digital capabilities.
Enhance customer experience, increase the quality
of work for employees and increase the quality of
reports.
Drive the creation of new revenue streams,
creating new high-quality jobs.
46 47
Success 03 - Intergrated ESG Goals with Digital Transformation Strategy
Data center providers in Singapore have been struggled to find

renewable energy, as the government has criticized this industry's
large carbon footprint but few renewable energy options available
through public grid.
Using Hydro Data center vendors are interested in Hydrogen fuel cells to replace
grid power or to replace diesel generators currently in use at most
data center locations. Hydrogen can burn without emitting
greenhouse gases, making it possible for data center providers to
is one of the “low-carbon” reduce their carbon footprint. Hydrogen fuel cells are installed in
individual racks and are powered by natural gas through a gas
pipeline.
promising technology for large
data centers in the world Microsoft successfully tested hydrogen fuel cells at its data centers
near Salt Lake City, Utah for 48 hours straight. Mark Monroe, Lead
engineer of Microsoft Datacenter Advanced Development, is also
studying on using hydrogen fuel cells as a backup power source in
case the main grid fails.
Nowadays, operating power in data centers globally accounts for 1% of total

electricity consumption, and is expected to account for 8% by 2040. Data center
providers' ability to use energy from renewable sources remains largely dependent
on the public grid and the government's approach to energy policy.
Keppel – headquarter in Keppel has partnered with Mitsubishi Heavy Industries, Dutch oil
Singapore – is one of the first company Royal Vopak and its subsidiaries City Gas and City-OG Gas
suppliers in APAC to research the Energy Services to study the feasibility of a hydrogen-powered power
use of hydro in its data centers. plant for its data centers using steam methane reforming technology,
thereby reducing dependence on the power grid. The factory model
is expected to benefit Keppel's floating data center, which is being
built off the coast of Singapore, and is expanding in other areas.
48
stories DxReports - Feb 2023 49

03 - Intergrated ESG Goals with Digital Transformation Strategy 03 - Intergrated ESG Goals with Digital Transformation Strategy
Nvidia
pioneers in applied AI to support forest fire
prevention
In this report, FPT Digital has mentioned an overview as well
Conclusion as some key factors of the ESG targets to synchronize with

the digital transformation strategy. In the ESG programs,
each factor of the environment, society, and governance is a
Nvidia Corporation is a
pillar that brings outstanding and sustainable growth
multinational technology
opportunities for the enterprises. Efficiently implementing
conglomerate established in
ESG goals helps enterprises build a positive image and
1993 headquartered in
increase the trust of customers, investors, and partners,
California, USA, specializing
helping to increase competitiveness and brand value. At the
in providing graphics
same time, it also helps enterprises enhance their ability to
processing units and chipset
cope with challenges in finance, resources, law, reduce risks,
technology for server
and improve the financial situation for the business. Finally,
systems, personal computers,
the ESG program helps businesses attract and retain talented
and mobile devices. Nvidia
employees. Employees who are highly aware of the ESG
has about 22,000 employees
program will feel proud of where they work and be more
worldwide, recognized by
motivated in their work.
Glassdoor as the best place
to work in the United States in
However, the integration of ESG goals into the digital
2022, an award based on
transformation strategy is a complex process that requires
anonymous employees'
synchronization and systematic investment by enterprises.
feedback from thousands of
This requires enterprises to carefully evaluate ESG goals, as
companies.
well as to explore appropriate digital solutions to support
these goals.
In November 2021, Nvidia and Lockheed Martin collaborated with the US Department of Agriculture, the Forestry To conclude, integrating ESG goals into the digital
Department, and the Colorado Fire Control & Firefighting Department to apply AI and digital twins in forest fire transformation strategy is an effective way to improve
prevention. This is one of the first AI-focused labs in the world to predict and respond to forest fires, built and production efficiency, ensure sustainability, and enhance
developed by this collaboration. The lab will use Nvidia’s AI infrastructure as well as the advanced virtual world competitiveness, so enterprises need to invest in the long
simulation and visualization platform Nvidia Omniverse to process the intensity of the fire and predict its progress. term to ensure that ESG goals are integrated properly and
By accurately reproducing the fire, the system will be able to propose the best actions to extinguish the fire. bring value not only to themselves but also to customers, the
environment, the community, and other stakeholders.
AI has assisted this data processing (collected through sensors, cameras,

satellite images, drones, among other sources) to be faster, more cost-
effective, and more accurate.
Speed and accuracy of these results can bring the “time advantage” which is important in forest fire prevention as
well as protect the forest ecosystem.

Report

The prerequisite direction in the journey of
sustainable development of enterprises
FPT DIGITAL
HANOI - HEAD OFFICE

FPT Tower, 10 Pham Van Bach Street, Cau Giay District, Hanoi, Vietnam
Ho Chi Minh City

VCB Tower, 5 Me Linh Square, Ben Nghe ward, District 1, Ho Chi Minh city, Vietnam
Tel: 0904689597
Email: fdx.contact@fpt.com.vn
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about how we use and protect your information, please review our privacy policy.
Copyright © 2022 | FPT Digital, FPT Tower Building, No. 10 Pham Van Bach, Cau Giay District, Hanoi, Vietnam.

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DxReports

ESG and Digital Transformation

The interest of customers, investors, employees, or

However, integrating ESG goals into the development

Overview carefully evaluate ESG goals, and at the same time

According to FPT Digital's 2022 survey, more than 90%

It is important for businesses to do it the right way to

This report provides an overview, helping businesses to

DxReports - Feb 2023 01

02 Sustainable development strategy according to ESG 29

03 Integrating ESG goals with business digital

02 DxReports - Feb 2023 03

E 01 Consumers, employees, investors, etc. expect companies to play a bigger

06 DxReports - Feb 2023 07

Current status of ESG in Vietnam

Environment Society Governance

08 DxReports - Feb 2023 09

Achieving the ESG goal will bring

Target Eﬀective ESG Strategy Weak ESG Strategy

10 DxReports - Feb 2023 11

Environment Society Corporate governance Community Benefits

Reduce regulatory interference: Improve employee productivity:

Investment and asset optimization:

Allocate capital to more promising and

12 DxReports - Feb 2023 13

Danfoss commits to carbon neutrality

14 DxReports - Feb 2023 15

Verizon aims for net-zero emissions

Verizon Communications Inc. is

AI Verizon also focuses its resources on accelerating the transition to a green

demonstrates its eﬀorts to provide developers of renewable energy

16 DxReports - Feb 2023 17

The potential to create corporate value

Enhance national image:

Addressing social inequalities in a multidimensional way:

Access to a wide range of investment opportunities and develop stakeholder

Build relationships and trust with stakeholders (customers, suppliers, investors,

18 DxReports - Feb 2023 19

Gusto balances social goals in ESG

20 DxReports - Feb 2023 21

Potential to create corporate value from

Foundation for development:

Reduce waste, risk and corruption:

Invest and eﬀectively allocate time, budget and human resources.

Promote environmental and social initiatives:

Prioritize governance benefits in the event of other conflicts, to:

22 DxReports - Feb 2023 23

Hafslund Oslo Celsio deploys Industry-

24 DxReports - Feb 2023 25

FPT optimizes operation management

FPT's experts collect and import data

In particular, this project was applied

26 DxReports - Feb 2023 27

4 conceptual basis for effective

1. Integrate strategic issues, particularly those

Assign responsibility and supervision based

Determine the ESG opportunities and risks that

Determine and evaluate all ESG issues that

30 DxReports - Feb 2023 31

Surveys and evaluations