Literature review on environmental aspects of ESG performance in Vietnam’s cement industry

Abstract

This article examined the pivotal role of environmental factors within the environmental, social, and governance (ESG) framework in shaping the development of Vietnam’s cement industry. It highlights how sustainability drivers influence environmental management practices and overall sectoral performance. Rising cement demand, evolving regulations, and the growing emphasis on sustainable construction have propelled the prioritization of environmental sustainability, facilitated by the adoption of robust environmental management systems (EMS). This environmental focus has resulted in tangible improvements in community health, employee well-being, stakeholder relations, regulatory compliance, and investor confidence, ultimately driving innovation, operational efficiency, and cost reduction. This industry-wide shift aligns with consumer preferences for eco-friendly construction materials and fosters a culture of sustainability across Vietnam’s cement sector. Notably, the industry has made significant progress in embracing cleaner production technologies, waste utilization, and green financing to drive its environmental sustainability agenda, underscoring the increasing prominence of ESG considerations. While the importance of ESG factors is widely recognized, a research gap persists in quantifying the specific contributions of the ESG pillars to overall ESG performance in the cement industry.