| B |
Sustainability and Resilience
|
22/22 |
| B.1 |
Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision |
6/6 |
| |
Material Sustainability-related information should be specified |
|
| B.1.1 |
Does the company identify/report ESG topics that are material to the organization’s strategy? |
PVCFC has identified key ESG issues (including impacts and responsive actions) that affect the Company’s business operations. (Page 266 - Annual Report 2024) |
Annual Report 2024
|
YES |
| B.1.2 |
Does the company identify climate change as an issue?
|
Page 276 of the Annual report 2024 stated that climate change is a material issues.
|
Annual Report 2024
|
YES
|
| B.1.3 |
Does the company adopt an internationally recognized reporting framework or standard for sustainability (i.e. GRI, Integrated Reporting, SASB, IFRS Sustainability Disclosure Standards)? |
Sustainability Report of PVCFC are prepared with reference to:
- 2021 Global Reporting Initiative (GRI) Standards.
- Sustainability Accounting Standards Board (SASB) Standards applied to chemical sector (RT-CH).
(Page 248 - Annual report 2024) |
Annual Report 2024
|
YES
|
| |
If a company publicly sets a sustainability-related goal or target, the disclosure framework should provide that reliable metrics are regularly disclosed in an easily accessible form |
|
| B.1.4 |
Does the company disclose quantitative sustainability target? |
Page 165 of the Annual report 2024 mentioned that: Directing operation and production of fertilizer products in a safe and stable manner, improving and optimizing productivity and enhancing cost efficiency with cost consumption reduced by 5% compared to 2022 by the end of 2025. By 2030, greenhouse gas emission intensity per ton of urea will be reduced by 1% compared to 2024, assuming the Plant is supplied with stable gas and emission reduction solutions are researched and implemented. |
Annual Report 2024
|
YES
|
| B.1.5 |
Does the company disclose sustainability-related performance progress in relation to its previously set targets? |
Activities related to the Sustainable Development Targets are presented in the Energy section - page 196, Sustainability Report 2024. |
Sustainability report 2024
|
YES
|
| B.1.6 |
Does the company confirm that its Sustainability Report / Reporting is reviewed and /or approved by the Board or Board Committee? |
In 2024, ESG Committee discussed and got an agreement on the contents related to the functions of ESG Committee "Reviewing and proposing approval on 2023 Sustainability Report" (page 185 - Annual report 2024) |
Annual Report 2024 |
YES
|
| B.2 |
Corporate governance frameworks should allow for dialogue between a company, its shareholders and stakeholders to exchange views on sustainability matters |
2/2 |
| B.2.1 |
Does the company engage internal stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? |
PVCFC engages with internal stakeholders (e.g., employees) through various methods: issuing the Collective Labor Agreement; establishing organizations such as the Trade Union, Veterans' Association, Youth Union, Committee for the Advancement of Women, etc.; and gathering feedback via emails, survey reports, and other channels.
(page 62 - Stakeholders Engagement - Sustainability Report 2024)
|
Sustainability report 2024
|
YES
|
| B.2.1 |
Does the company engage external stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? |
PVCFC engages with external stakeholders through various methods, such as farmer and distributor workshops, investor meetings, and digital platforms. The Company also operates applications like the “2Nong - Agricultural Connection” app (2nong.vn), which provides market and crop season information, agricultural input prices, cultivation and fertilization guidance, purchasing instructions, and customer care services.
(page 62 - Stakeholders Engagement - Sustainability Report 2024)
|
Sustainability report 2024
|
YES
|
| B.3 |
The corporate governance framework should ensure that boards adequately consider material sustainability risks and opportunities when fulfilling their key functions in reviewing, monitoring and guiding governance practices, disclosure, strategy, risk management and internal control systems, including with respect to climate-related physical and transition risks |
1/1 |
| |
Boards should assess whether the company’s capital structure is compatible with its strategic goals and its associated risk appetite to ensure it is resilient to different scenarios |
|
| B.3.1 |
Does the company disclose that the board reviews on an annual basis that the company's capital and debt structure is compatible with its strategic goals and its associated risk appetite? |
- Regarding policies:
The Company uses capital sources appropriately and effectively, especially in using capital for long-term purposes to ensure that the capital structure is always in safety for the Company’s sustainable operations. BOD annually evaluates PVCFC’s capital structure to ensure that it is consistent with the Company’s longterm business strategy as well as the risk appetite that the Company has determined
- Regarding practices:
BOD always follows up the economic developments to have right choices to optimize shareholders’ interests on the principle of ensuring a safe capital structure, optimizing capital costs, and limiting financial risks
(Page 194-195 - Annual Report 2024)
|
Annual Report 2024 |
YES
|
| B.4 |
The corporate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and encourage active co- operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises. |
7/7 |
| |
Does the company disclose a policy and practices that address: |
|
| B.4.1 |
The existence and scope of the company's efforts to address customers' welfare? |
PVCFC has described the policies and actions implemented to protect customer rights (pages 66-67, Sustainability Report 2024). |
Sustainability report 2024
|
YES |
| B.4.2 |
Supplier/contractor selection procedures? |
In the supplier capability assessment process, we apply the following criteria:
- Commitment to comply with safety and environmental protection regulations
- Number of violations of government regulations related to child labor
- Number of violations of government regulations on the environment
To ensure that partners not only meet product quality requirements but
also demonstrate responsibility toward the environment and society.
(pages 129, Sustainability Report 2024). |
Sustainability report 2024 |
YES |
| B.4.3 |
The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? |
The impacts of PVCFC’s business operations on environmental and social issues extend beyond activities within the factory premises.
We are aware of the environmental and social impacts resulting from the production and supply of raw materials, chemicals, and
services essential to our business operations. Therefore, in our supplier selection process, we require and only choose entities that comply with legal requirements concerning environmental and social standards.
Detailed analysis is provided in Chapter 4 - Building a Sustainable Supply Chain (from page 128).
|
Sustainability report 2024
|
YES
|
| B.4.4 |
The company's efforts to interact with the communities in which they operate? |
In 2024 Annual Report, PVCFC emphasized: "On the journey of value creation, in addition to the goal of revenue and profit growth, PVCFC constantly strives to ensure corporate responsibility on two main foundations which are contributing to society and preserving the environment to build sustainable values."
For further details on the Company’s actions and efforts in community engagement, please refer to the 2024 Sustainability Report. |
1. Annual Report 2024
2. Sustainability report 2024
|
YES
|
| B.4.5 |
The company's anti-corruption programmes and procedures? |
The Company’s Code of Conduct, Article 17. Anti-corruption and bribery clearly states “PVCFC’s success is based on the product and service quality, not based on illegal actions or unethical conduct. PVCFC does not tolerate acts of corruption or bribery”. Whistle blowing System is one of the most effective channels for the Company to receive initial reports/warnings
about corruption.
By the end of 2024, 100% of employees have been trained in anti-corruption and bribery under 3 forms i.e. workshop, online and face-to-face. PVCFC always focuses on business ethics; therefore, the compliance with the rules is disseminated and reminded regularly through training programs, culture building, teambuilding and other activities. Regularly reminding and training ensure that the Company’s employees comply with the antibribery and anti-corruption policy.
PVCFC has established a Whistleblowing System, complete with regulations and procedure for reporting misconduct. |
1. Annual report 2024
2. Code of Business conduct
3. Whistleblowing procedure
|
YES
|
| B.4.6 |
How creditors' rights are safeguarded? |
Policies: PVCFC respects the legitimate interests of its creditors and commits to ensuring that these legal rights are protected. (Article 2, resolution 2407)
Practices: (page 195, Annual report 2024)
- In 2024, the Company got loans from Vietcombank and Vietinbank with a total value of VND 6,755 billion and made principal and interest payment on schedule.
- PVCFC has a high credit score since the Company always pays its loans on time. Credit institutions are also willing to offer loans with preferential interest rates.
- For PVCFC’s subsidiaries, loans are always paid on time and ensure benefit of credit institutions with high-quality collaterals (machinery and property).
|
1. Resolution 2407
2. Annual report 2024
|
YES
|
| B.4.7 |
Does the company have a separate report/section that discusses its efforts on environment/economy and social issues? |
The Company has disclosed a separate 2024 Sustainability Report |
Sustainability report 2024
|
YES
|
| B.5 |
Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights |
1/1 |
| B.5.1 |
Does the company provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? |
Yes, please see home page in PVCFC website. Also see page 15 of the Annual Report 2024
The company has also announced the whistleblowing procedures on website. |
1. Annual Report 2024
2. Whistleblowing procedures
|
YES |
| B.6 |
Mechanisms for employee participation should be permitted to develop. |
3/3 |
| B.6.1 |
Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees? |
Chapter 4: "Occupational health and safety of emplyees", "Employee benefits"
(Page 132-137 of the Sustainability report 2024) |
Sustainability report 2024 |
YES
|
| B.6.2 |
Does the company explicitly disclose the policies and practices on training and development programmes for its employees? |
PVCFC focuses on training and improving the management, professional and technical skills for all employees. (page 148, Annual report 2024)
Pratices: Chapter 4. "Training and development" - Page 140, Sustainability report 2024
|
1. Annual Report 2024
2. Sustainability report 2024
|
YES |
| B.6.3 |
Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures? |
The salary and bonus policy for employees not only depends on the Company’s business results in the year but also based on efficiency/level of job satisfaction, compliance issues with regulations related to ethics and other internal processes. PVCFC also reviews other long-term factors such as past performance/compliance assessment results to consider the salary and bonus. When the Company has profits or profits exceeding the plan, a part is deducted as a reward fund and spent in the following years.
(page 130, Annual report 2024) |
Annual Report 2024 |
YES |
| B.7 |
Stakeholders including inpidual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this. |
2/2 |
| B.7.1 |
Does the company have a whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report |
The Company has promulgated and disclosed on its official website the following documents:
– Whistleblowing Regulation
– Whistleblowing Procedure |
1. Regulations on Whistleblowing
2. Whistleblowing procedure
|
YES
|
| B.7.2 |
Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation? |
BOD has issued Whistle blowing Policy since February 2023 (which was then revised in Resolution No. 3900/NQ-PVCFC dated December 20, 2024) to promptly detect and adjust behaviors, enhance the sense of responsibility of employees and encourage them to be proactive and confident in providing feedback to managers, thereby increasing management and business efficiency as well as protecting and promoting PVCFC’s reputation. (page 193, Annual report 2024)
Details on whistleblower protection against retaliation can be found in the Regulations on Whistleblowing.
|
1. Annual report 2024
2. Regulations on Whistleblowing
|
YES |