Technology – A catalyst for Vietnamese Businesses to effectively implement ESG and access Green capital

The seminar “Applying Technology in Sustainable development and Accessing Green Capital” organized by FPT and ACCA Vietnam on 19th March 2025 offered practical insights into the challenges and solutions for Vietnamese enterprises on their sustainable transformation journey.

The seminar “Applying technology in sustainable development and sccessing green capital” organized by FPT and ACCA Vietnam on 19th March 2025 offered practical insights into the challenges and solutions for Vietnamese enterprises on their sustainable transformation journey. 

Mr. Nguyen Quang Thuan, Chairman and CEO of FiinRatings – an independent credit rating agency which had experiences in verifying green bonds and green credits according to international standards – shared his perspective on the role of technology applications in supporting businesses in green transition. He also delved into how to successfully access sustainable domestic and international capital with reasonable borrowing costs. This is considered crucial as the government may introduce local taxonomy regulations in the foreseeable future. 

Can technology be effectively applied to the measurement and monitoring systems for enterprises' sustainable development goals? 

Currently, ESG frameworks and sustainable development are transitioning from mere compliance phases to becoming strategic tools in creating long-term value for businesses. Technology plays a key role in this transformation through three main mechanisms: 

Firstly, big data analytics combined with artificial intelligence is revolutionizing the collection and processing of ESG data. Instead of relying on costly and error-prone manual data gathering, companies can deploy automated solutions to collect data from multiple dispersed sources. For example, IoT sensors can monitor energy consumption and carbon emissions in real time, while AI algorithms analyze this data to identify models and trends undetectable by traditional methods. 

This leads to the second benefit - the ability to establish specific and measurable KPIs. Digital platforms specializing in ESG allow businesses not only to set detailed goals but also to continually track progress, analyze deviations, and adjust strategies flexibly. Advanced data visualization tools help transform complex information into easy-to-understand and automated reports for stakeholders, particularly according to different criteria and regulatory requirements. Furthermore, predictive analytics can help businesses forecast the impact of business decisions on ESG goals, facilitating strategic long-term planning. 

Finally, blockchain technology is revolutionizing the transparency and reliability of ESG data. By recording and verifying every data transaction on an immutable distributed ledger, blockchain addresses one of the biggest challenges in ESG reporting: building trust among parties. Smart contracts can automatically enforce terms based on verified ESG data, creating a transparent and reliable ecosystem. This is particularly important as businesses interact with financial institutions and investors, where the reliability of ESG data directly affects access to capital and borrowing costs. 

How can collaboration among stakeholders be optimized to maximize business value and access to capital through ESG reporting? 

The core of effective ESG reporting is the ability to connect stakeholders within an ecosystem with multiple market participants, thereby expanding value creation potential and access to capital. To optimize this collaboration, businesses need to build an integrated strategy based on three main pillars. 

First is creating a common ESG data platform. In the absence of unified global standards, businesses are gradually working with partners to develop a common language and unified data standards. Technology platforms like integrated ESG data management systems allow all stakeholders—from investors and regulators to supply chain partners—to access and analyse the same data set. This not only improves information consistency but also creates operational efficiency, reduces reporting costs, and minimizes information discrepancies. 

The second pillar is integrating ESG into core business strategies through technology. Current technological tools are gradually facilitating the incorporation of ESG factors into business decision-making. For example, integrated analytics solutions allow finance, operations, and sustainability departments to jointly assess the impact of investment projects based on both financial and ESG criteria. This not only enhances decision-making but also creates opportunities for innovation in sustainable products and services, opening up new markets and generating potential revenue streams. 

Finally, the third pillar is the direct connection between ESG performance and access to capital. API technologies and open financial platforms are enabling businesses to share real-time ESG data 24/7 with financial institutions, facilitating the development of green financial products like Sustainability-Linked Loans (SLL), Sustainability-Linked Bonds (SLB), and green bonds. If this process is consistent and smooth, it will create a value loop towards the goal of carbon neutrality: higher ESG performance leads to lower capital costs, which in turn drives more investment into sustainable initiatives. Advanced technology platforms can also automate ESG risk assessment, helping investors and financial institutions make faster and more accurate decisions, thereby improving capital flow to businesses with high ESG performance. 

What role does independent verification play in enhancing the reliability of ESG data when businesses apply technological solutions? 

As ESG data becomes increasingly important in investment decision-making and capital allocation, the authenticity of information is becoming a crucial factor. Independent verification combined with advanced technology is creating a reliable ESG data ecosystem through three synergistic mechanisms. 

Firstly, technology is transforming ESG data verification from periodic audits to continuous monitoring. Automation solutions allow third parties to monitor and verify ESG data in real time, providing a more comprehensive picture of a company's performance. AI and machine learning technologies can analyze large volumes of data from various sources, identify patterns, and detect anomalies that humans may not recognize. For instance, anomaly detection algorithms can automatically alert significant discrepancies in carbon emissions or energy consumption data, facilitating timely investigation and resolution. Thus, we have a verification process from emission reduction roadmaps with independent evaluations based on good principles and practices, while also validating continuous monitoring activities, which has been the basis of collaboration between FiinRatings and Aquila. 

Secondly, blockchain technology and distributed ledgers are improving the transparency and immutability of ESG data. By recording every data transaction on a public blockchain, it provides indisputable evidence of the origin and integrity of ESG information. This is particularly important in verifying sustainable supply chain requirements, carbon tracing, and labour standards compliance. Smart contracts can automatically enforce terms based on verified ESG data, reducing fraud risks and enhancing stakeholder trust. 

Finally, digital collaboration platforms are creating an integrated working environment among businesses, validators, and stakeholders. These tools allow all parties to access the same ESG data set, facilitating efficient verification and reconciliation of information. This not only improves the accuracy of reports but also continually enhances ESG data quality. As independently verified data becomes more accessible and understandable, financial institutions and investors can make capital allocation decisions more quickly and accurately, creating a competitive advantage for businesses with high and independently verified ESG performance. This will become a practical trend as Vietnam gradually sees more ESG investment funds in the future. 

In summary, the combination of independent verification and advanced technology is creating a reliable ESG data ecosystem, where accurate and transparent information becomes the foundation for sustainable investment decision-making and capital allocation. This not only helps businesses access funding at reasonable costs but also promotes the transition to a low-carbon, more sustainable economy. 

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About FiinRatings 
FiinRatings, a member of FiinGroup and technical partner of S&P Global Ratings, is a licensed credit rating agency under Vietnam’s Ministry of Finance. Our services include credit ratings, green bond verification, and independent evaluations (Second Party Opinion - SPO), catering to issuers, lenders, and investors across diverse sectors in Vietnam. 

FiinRatings’ SPO services provide independent evaluations of financial instruments, policy frameworks, or transactions aligned with principles set by global institutions like the International Capital Market Association (ICMA) and the Climate Bonds Initiative (CBI). Notably, FiinRatings is the first approved verifier for CBI Climate Bond Standards in Vietnam. 

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