ESG in Vietnamese enterprises: When sustainable development becomes competitive advantage

Masan Consumer (UPCoM: MCH), a member of Masan Group, has recently been ranked among the world’s ESG leaders by S&P Global, scoring higher than 85% of FMCG companies assessed globally.

When sustainability becomes a core business strategy

ESG (environmental, social, governance) has become an integral part of how the financial markets assess corporate health. Beyond being a measure of social responsibility, ESG is increasingly viewed by global investors as a key indicator of risk governance capability and long-term growth potential.

Recent studies by S&P Global and MSCI show that companies with strong ESG scores tend to maintain more stable financial performance, especially amid market volatility, while benefiting from lower capital costs and enjoying sustained valuations.

One of the world’s most influential ESG evaluation systems today is the Corporate Sustainability Assessment (CSA) by S&P Global.

This framework, applied annually to over 12,000 companies worldwide, tailors its criteria to each industry - covering governance effectiveness, risk control, emissions management, supply chain oversight, human resources, and compliance. Thus, a company’s ESG score reflects how deeply sustainability is embedded in its core business strategy.

In Vietnam, ESG assessment has gained increasing traction as the capital market aligns with international standards. Within the fast-moving consumer goods (FMCG) sector, Masan Consumer is among the first Vietnamese firms to be publicly scored by S&P Global.

According to the latest results, Masan Consumer achieved an ESG score of 48, outperforming 85% of FMCG peers globally. Notably, the Governance & Economic Dimension scored 51, higher than 88% of companies in the same industry, highlighting the firm’s transparent governance capability and solid risk management mechanism.

The Environmental and Social pillars both scored 47, reflecting balanced progress between operational efficiency and social responsibility.

Being highly ranked by a reputable global organization not only demonstrates Masan Consumer’s sustainable governance capacity but also strengthens investor confidence, especially as global funds increasingly treat ESG as a core criterion for long-term capital allocation.

From strategy to execution: How Masan Consumer implements comprehensive ESG

While ESG scores measure performance, the real story lies in how Masan Consumer translates sustainability into action. Rather than treating ESG as a checklist, the company follows the philosophy of “Doing Well by Doing Good” - achieving growth through delivering positive value to the environment, communities, and employees.

This philosophy has been materialized through multiple initiatives focused on environmental impact reduction, operational governance, and employee welfare - the three foundational pillars recognized by S&P Global for long-term growth.

On the environmental front, Masan Consumer is transitioning toward greener manufacturing. In 2024, the company reduced greenhouse gas emissions by 18% compared to 2023, while 65% of its energy consumption came from renewable sources. All forklifts at its factories have been replaced with electric ones, reducing operating costs and direct emissions.

The company also advanced circular packaging initiatives, including increasing the proportion of recycled plastic (rPET), optimizing weight and volume, and eliminating PE film in certain tablet product lines - thereby reducing its carbon footprint across the supply chain.

At the operational level, Masan Consumer emphasizes standardized and transparent governance. All factories have achieved international certifications such as ISO 14001, ISO 50001, ISO 45001, and FSSC 22000. These standards not only ensure risk control and quality assurance but also provide a framework for measurable ESG reporting and improvement.

In parallel with environmental and governance goals, people remain at the center of Masan Consumer’s strategy. The company has been recognized as a “Great Place to Work” in Vietnam for three consecutive years (2023-2025) and maintains continuous programs for capacity building, innovation encouragement, and gender equality promotion.

On the community side, initiatives such as “One Million Meat Meals”, heart surgery sponsorships, disaster relief efforts, and infrastructure building continue to be implemented, demonstrating that the company’s sustainable development vision goes hand in hand with social contribution.

These initiatives are not merely for compliance or reputation - they reduce operational risks and enhance resilience against market fluctuations. In an era of rising energy, material, and labor costs, early ESG adoption allows Masan Consumer to control inputs, boost production efficiency, and optimize costs - crucial factors for maintaining sustainable profit margins.

As responsible investment becomes a global trend, companies with transparent ESG records are seen as lower-risk investments, benefiting from preferential capital costs. For Masan Consumer, standardizing and regularly disclosing ESG data under S&P Global’s framework marks a critical step in reinforcing investor trust in the company's long-term growth strategy.

About Masan Consumer (UPCoM: MCH)

Masan Consumer is one of Vietnam’s leading fast-moving consumer goods (FMCG) companies. According to Kantar Worldpanel, over 98% of Vietnamese households own at least one Masan Consumer product.

Starting in the seasoning sector, the company now operates across eight key FMCG categories in Vietnam and owns multiple well-loved brands. Among these, five flagship brands - CHIN-SU, Omachi, Kokomi, Nam Ngư, and Wakeup 247 - generate annual revenue exceeding VND2,000 billion ($75.93 million) each.

Expanding beyond the domestic market, Masan Consumer’s “Go Global” strategy has successfully brought its core brands such as CHIN-SU and Omachi to more than 26 countries, including the U.S., Japan, South Korea, and Russia, helping promote Vietnamese brands on the global stage.