An ESG report is an information framework that helps businesses record and disclose their sustainable development efforts based on three pillars: environment, social, and governance.
Going far beyond traditional financial indicators, it serves as a benchmark that reflects a company’s ability to manage risks and its commitment to creating long term value within the global supply chain.
Below, KTG Industrial provides a structured roadmap for preparing an ESG report, helping businesses confidently enter the era of the green economy.
Overview of ESG reporting
An ESG report acts as an information framework that enables businesses to record and share their sustainable development efforts in line with international practices.
Beyond financial indicators, this report demonstrates how a company manages risks, allocates resources effectively, and builds long term value for stakeholders.
ESG content is developed based on three main pillars, directly linked to operational activities and growth objectives. Specifically:
- The environmental pillar addresses emission reduction, improved energy efficiency, and responsible resource management in order to minimize negative environmental impacts.
- The social pillar reflects policies toward employees, promotes gender equality, ensures workplace safety, and fulfills responsibilities toward the community.
- The governance pillar focuses on information transparency, ethical standards, and management structure, thereby creating a foundation for stable and sustainable business development.
ESG reporting helps businesses manage risks, enhance operational transparency, and achieve sustainable growth
Why businesses need to prepare ESG reports now
ESG reporting is shifting from an optional initiative to a practical requirement for many businesses, as regulations on green credit and carbon trading markets are becoming increasingly stringent.
Preparing an ESG report helps companies proactively comply with legal requirements and manage potential risks.
At the same time, ESG creates financial advantages by expanding access to preferential capital, attracting institutional investors, and strengthening brand credibility within the global supply chain.
Read more: Navigating green factories and ESG challenges in Vietnam
A 4 step process for effective ESG reporting
Preparing an ESG report requires a structured process to ensure completeness, consistency, and alignment with business objectives.
Below are four steps for effective ESG reporting:
Step 1 – Define scope and stakeholders:
- Businesses need to clearly identify material ESG issues based on industry characteristics, operational scale, and level of impact.
- At the same time, classifying target stakeholders such as investors, regulatory authorities, or customers helps shape the report’s content, level of detail, and appropriate presentation.
Step 2 – Collect data and measurement indicators:
- An ESG report should combine quantitative indicators such as emission levels, water consumption rates, and energy usage with qualitative indicators such as human resource policies, anti corruption control processes, and community commitments.
- Tip: Businesses should apply ESG management technologies and software to standardize data, reduce errors, and save time in the reporting process.
Comprehensive ESG data collection combined with measurement indicators supports accurate reporting
Step 3 – Select appropriate international reporting frameworks:
Depending on disclosure objectives and the intended audience, businesses may consider the following three widely used standards:
| Standard | Main scope | Target users | Key criteria | Notable characteristics |
| GRI (Global Reporting Initiative) | Comprehensive coverage of economic, environmental, and social factors | All types of businesses doanh nghiệp | GRI 100: Principles and transparency
GRI 200: Economic impacts GRI 300: Environment GRI 400: Social |
Comprehensive, flexible across industries, widely recognized |
| SASB (Sustainability Accounting Standards Board) | ESG factors that directly affect financial performance | Listed companies, investors | Resource management, emissions, data security, labor conditions, business ethics | Focuses on financial impacts, with industry specific standards |
| TCFD (Task Force on Climate-related Financial Disclosures) | Climate related financial risks and opportunities | Businesses in finance, energy, and manufacturing sectors | Governance, strategy, climate risk management, emissions metrics and targets | Emphasizes climate risks and can be easily integrated with GRI and SASB |
Step 4 – Finalize content and publish the report:
- A standard ESG report is typically structured with a leadership message, implementation results, data analysis, and future commitment directions.
- In terms of format, businesses can publish the report as a PDF, upload it to the company website, or integrate it into the annual report to enhance transparency and accessibility.
Challenges and solutions in implementing ESG in Vietnam
When applying ESG, many Vietnamese businesses still face several barriers, most notably the lack of historical data, high initial investment costs, and limited human resources with specialized expertise.
These challenges often create hesitation during the ESG implementation process.
To address this, businesses can adopt ESG in phases, prioritizing smaller scale initiatives and key indicators first.
At the same time, using ESG management software combined with referencing sample reports can help optimize resources and standardize reporting content more effectively.
KTG Industrial – Supporting businesses in implementing ESG reporting
When a business is built on sustainable infrastructure from the beginning, implementing ESG reporting becomes significantly more efficient.
In practice, instead of incurring high costs to upgrade older factories, many companies prefer ready built factory models aligned with the green development orientation of KTG Industrial to support their ESG implementation.
From the Environmental (E) perspective, integrated energy optimization and water management solutions help businesses gradually improve emission indicators.
For the Social (S) pillar, workspaces are designed with open layouts that ensure adequate lighting and occupational safety.
Meanwhile, for the Governance (G) pillar, transparent operational systems facilitate data collection and support the ESG reporting process.
KTG Industrial promotes ESG through rooftop solar energy and green infrastructure
Conclusion
In summary, ESG reporting is a necessary step that helps businesses strengthen governance and move toward sustainable development.
With a clear roadmap and the right foundation, ESG implementation can become more straightforward and effective.
References
Viet Research (2025). Bao cao ben vung (ESG) cua doanh nghiep: Quy trinh lap bao cao, cac tieu chuan can luu y va loi ich.
