ESG reporting HR Vietnam companies

In an era where sustainable development is no longer an option but a norm, ESG workforce compliance Vietnam 2026 is emerging as a key strategic element in modern corporate governance. Previously, ESG was primarily focused on financial reporting or investment activities, but now it is deeply embedded in the heart of human resource strategy.

No longer simply about "compliance" or "ethical demonstration," ESG in HR is about how HR contributes to creating long-term value for the business, its people, and society. Understanding and accurately applying ESG in HR will help organizations strengthen their employer brand, attract talent, improve operational efficiency, and simultaneously meet the expectations of investors, customers, and the community.

1.    Understanding ESG in Human Resources (ESG in HR)

ESG stands for three core areas of responsibility that every organization needs to consider in how they operate and create value: Environmental, Social, Governance

Integrating ESG into business strategy – especially in human resource management – helps organizations not only better manage risks, but also build an ethical, fair, and sustainable corporate culture. With ESG increasingly influencing employer branding, investor attraction, and talent retention, ESG in Human Resources is becoming an indispensable strategic requirement.

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2.    Social – Social Responsibility and ESG in Human Resource Management

The social pillar of ESG relates to how businesses manage relationships with employees, customers, suppliers, and the community. In the field of human resources, this is the most clearly linked aspect – encompassing:

• Ethical labor practices
• Ensuring gender equality and income fairness
• Implementing the DEIB (Diversity, Equity, Inclusion & Belonging) strategy
• Ensuring human rights and safe working conditions

3.    Typical example – The reality and commitment of the food industry

Nestlé, Mars, and Hershey have faced criticism for sourcing cocoa from West Africa linked to child labor and forced labor. Meanwhile, the Tony’s Chocolonely brand has publicly committed to paying fair prices and building a non-exploitative supply chain. While they acknowledge not yet achieving 100% slave-free status, they are actively promoting change and eliminating unethical labor practices.

With a central role in recruitment, training, and talent management policies, HR determines the extent to which an organization's commitment to social ESG is realized.

4.    How Does HR Contribute to ESG Strategy?

From a human resources perspective, many elements of a practical ESG strategy are directly or indirectly the responsibility of the Human Resources (HR) department. Unfortunately, many HR professionals today are still unaware of this connection, leading to ESG in HR (ESG in HR) remaining outside their area of expertise.
 

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For HR to truly become an internal force in ESG leadership, the following are necessary:

• A strategic shift, integrating ESG into human resource management throughout the entire process.
• A proactive mindset, not waiting for other departments to initiate ESG, but rather requiring HR to take the lead in building internal ESG programs.
• A clear measurement framework, ranging from indicators of diversity and equality to employee satisfaction linked to sustainable behavior.

5.    Some common ESG frameworks

●    UNSDG – The 17 Sustainable Development Goals of the United Nations: 
A set of global development goals for 2030, aiming for sustainable, inclusive, and equitable growth.
Source: sdgs.un.org/goals
●    MSCI ESG Indexes
A set of ESG indices developed by Morgan Stanley Capital International (MSCI), helping investors assess the sustainability performance of businesses.
Source: msci.com

●    GRI – Global Reporting Initiative
An independent organization that develops widely applied ESG reporting standards globally, helping businesses disclose information transparently and consistently.
Source: globalreporting.org

●    TCFD – Task Force on Climate-related Financial Disclosures
A framework guiding the disclosure of risks and opportunities related to climate change, supporting businesses in integrating ESG elements into governance and finance.
Source: fsb-tcfd.org

●    ILO – International Labour Organization
A specialized agency of the United Nations that issues international labor standards, promotes sustainable employment, and protects workers' rights.
Source: ilo.org

In the past, ESG was considered a secondary task for the Investor Relations team or the CSR department. But today, ESG in HR is an integral part of the human resources strategy. HR cannot be passive – it needs to proactively “lead from within.” Instilling ESG into the organizational culture, policies, and behaviors is a long-term responsibility of Human Resources.

>>>Read more: Improving HR Processes with Employee Self-Service (ESS)

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