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Overview
VinFast, Vietnam’s first global manufacturer of automotive vehicles, is on track to reach 100% zero emission new vehicle sales in its target markets by 2035. The company is steadily cultivating its sustainability credentials. In 2022, VinFast signed The Climate Pledge, a commitment to reach net zero carbon emissions by 2040, and the COP26 Zero-Emission Vehicle (ZEV) Declaration. In July 2022, Morningstar Sustainalytics awarded the organisation an overall Corporate ESG Assessment score of 23.3, among the top ESG rating designated to pure electric vehicle (EV) companies. VinFast was also the winner of the ‘Corporate Sustainability Champions’ category in the 2022 ORIGIN Innovation Awards. Over the course of six months, PwC conducted assessments of VinFast’s current practices and developed powerful recommendations and roadmaps, setting the stage for a partnership fueled by a mutual commitment to ESG.
Interview with:
Dr. Morgan Carroll
ESG Director,
VinGroup and VinFast
How did VinFast put its ESG plans in motion?
“VinGroup made an announcement in July 2022 that VinFast, our automotive producer, would stop manufacturing internal combustion engines and switch to electric vehicle production by January 2022. VinFast is committed to creating a greener future for all, and this is reflected in our ESG sustainable development roadmap that is integrated into the long-term business strategy. VinFast has taken proactive steps to speed up the transition from producing internal combustion engines to manufacturing purely electric vehicles. VinFast is also one of the first automotive companies in the world to adopt a pure electric strategy. We are focused on developing a range of eco-friendly and smart electric vehicles to support the global electric vehicle revolution. VinFast offers a comprehensive electric mobility ecosystem, which includes electric cars, buses, scooters, and charging solutions to cater to the diverse needs of our customers.
VinFast creates efficient manufacturing processes to reduce emissions, reuse, and save water and energy. Sustainability standards are requirements and evaluation criteria of VinFast for partners and suppliers. VinFast also collaborates with leading research institutes and universities to develop new zero-carbon solutions. Furthermore, the battery subscription policy assists VinFast in recovering old, expired batteries for disposal in accordance with rules, ensuring environmental safety.
Viewing our long-term business model through a comprehensive ESG lens has become increasingly essential. We see PwC’s multidisciplinary support as a critical part of that journey.”
What moves did PwC take to solve VinFast’s obstacles to ESG?
“PwC worked with us to assess and compare our current ESG practices against peers and industry-leading practices. PwC provided compelling recommendations for building an improvement roadmap on VinFast’s ESG practices that would reflect best practice while helping us integrate sustainability measures into the company’s overall business activities. 23 processes and systems were reviewed and assessed to identify improvement opportunities for our ESG function. As a result, we are finalising our first sustainability disclosure (ESG) report to reflect the international strategies and frameworks advised by PwC.”
In what ways did PwC’s solution combine cutting-edge technology and global ESG expertise?
“The challenge of gathering structured and unstructured, quantitative and qualitative data from across our organisation including factories, showrooms, and offices is one of the most important yet difficult steps in the process of compiling an ESG report. To address this, PwC used a bespoke platform for sharing data and tailored the data request form to suit VinFast’s project team. This enabled us to pull ESG data from thousands of sources into one platform before collating it systematically in the right order. The data was once again filtered and visualised before use in analysis and reporting. PwC’s people and technology helped VinFast reduce a substantial amount of time and effort, empowering us to complete our first ESG report to the highest quality and in a timely manner.”
How did innovation and original thinking help VinFast get close to its long-term goals?
“A lack of proper data awareness, robust data governance structures and monitoring systems are common problems for any company new to the adoption of ESG. PwC understood the situation. They created a project team of assurance professionals and our own ESG team to build awareness of ESG among VinFast’s stakeholders. This reflects VinFast’s commitment to demonstrating value and building trust with our board and major partners – while equipping our company with indispensable tools to plan for production expansion on a global scale.”
Sustained outcomes
One improvement roadmap to close the gap in implementing ESG practices with four recommendations approved for implementation within three to six months
One structured ESG reporting process in accordance with Global Reporting Initiative (GRI) standards
One blueprint ESG report, which disclosed the social, environment and governance aspects of VinFast in accordance with GRI
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Contact us
Andrew Chan
Asia Pacific ESG Strategy & Transformation Leader, PwC Malaysia
Tel: +65 9753 6736
