Benefits of ESG in Manufacturing Enterprises
In an era where sustainable development has become a global priority, ESG (Environmental – Social – Governance) standards are no longer optional but are gradually becoming mandatory—especially for manufacturing enterprises. Understanding the benefits of ESG in manufacturing enables business leaders to seize opportunities, optimize operations, and build a strong market position.
Let’s explore the value ESG can bring to manufacturing businesses in the article below with IBS.
What is ESG and why should the manufacturing industry pay special attention?
ESG is a set of standards used to evaluate a company’s operations based on three pillars:
- Environmental: energy use, greenhouse gas emissions, waste, resource usage…
- Social: working conditions, health and safety, community relations
- Governance: transparency, risk management, business ethics, leadership structure
Given the sector’s high resource consumption, large labor force, and direct impact on the environment and communities, manufacturing is one of the industries most directly affected by ESG standards.
Implementing ESG not only helps manufacturing businesses meet legal and partner requirements, but also generates practical long-term benefits.
5 Key Benefits of ESG in Manufacturing Enterprises
Cost savings on operations, fuel, and resources
One of the most visible benefits of ESG in manufacturing is cost efficiency. ESG encourages businesses to optimize energy usage, use raw materials more efficiently, and improve production processes.
Initiatives like switching to LED lighting, reusing scrap materials, reducing plastic packaging, and saving water significantly reduce operational costs. According to the OECD, manufacturers that seriously implement ESG can save 10–20% in operating costs annually.
Increased market opportunities and access to global supply chains
Many global corporations now only work with suppliers that meet ESG standards. For manufacturers, this opens the door to joining international supply chains and increases their competitiveness in global tenders.
Meeting ESG criteria helps businesses not only comply with strict regulations from markets like the EU, U.S., and Japan, but also build trust with partners—allowing for sustainable export growth.
Attracting investment and accessing sustainable finance
Integrating ESG helps businesses demonstrate sound governance, transparency, and long-term vision—enhancing their ability to raise capital and boosting their financial market valuation.2
Effective risk management and legal compliance
Manufacturing is inherently exposed to environmental, labor safety, and regulatory risks. Implementing ESG allows businesses to proactively establish a risk management system to prevent and respond effectively to crises.
According to MSCI data, ESG-compliant companies can reduce losses by up to 20% during volatile periods. ESG also helps manufacturers avoid fines, operational shutdowns, or media scandals due to regulatory violations.
Enhancing brand reputation and attracting top talent
In an era where consumers care about social and environmental responsibility, ESG gives manufacturers a strong branding advantage.
Research shows consumers are willing to pay more for “green” and sustainable products. ESG also helps attract and retain employees—especially younger generations.
A survey by IBM found that 71% of job seekers prefer working for companies with sustainable strategies. Harvard Business Review also found that companies with strong ESG retention rates are 25% higher than those without.
IBS – Supporting businesses in effective ESG implementation
Implementing ESG is a long-term journey that requires the right understanding, correct execution, and the right partner.
At IBS – Institute for Business Solutions Training and Consulting, we offer a comprehensive solution ecosystem, including:
- Hands-on training & coaching
- Strategic consulting & team development
- Business networking and trade connections
IBS is proud to be the exclusive partner of VOS Holdings Ecosystem Co., Ltd., implementing a Greenhouse Gas Inventory training program following ISO 14064-1 standards and building Net-Zero roadmaps for banks and financial institutions in Vietnam.
This program is internationally standardized, updated to match Vietnam’s context, and especially certified by Intertek – a globally reputable inspection and certification body. The IBS – VOS Holdings – Intertek collaboration affirms IBS’s pioneering role in connecting Vietnamese businesses with international ESG standards and networks.
Contact IBS today for tailored, effective, and sustainable ESG consulting for your enterprise.
IBS – Institute for Business Solutions Training and Consulting Joint Stock Company
- 35 Nam Ky Khoi Nghia, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City
- Website: ibsglobal.vn
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