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Sustainability-related pressure is becoming increasingly clear for Vietnam\u2019s livestock industry. From international supply chain requirements and Vietnam\u2019s Net Zero commitment at COP26 to domestic regulations related to greenhouse gas inventories and sustainability disclosure, livestock businesses \u2014 especially large-scale businesses, those involved in modern supply chains, or those aiming for export markets \u2014 can no longer afford to stay outside this trend.<\/span><\/p>\n However, most existing ESG materials remain at the level of theory, definitions, or applications for finance and industrial manufacturing. Livestock farming \u2014 with its specific characteristics such as methane emissions from animals, organic waste management, dependence on land, water, energy, and rural labor \u2014 needs an ESG approach that fits the unique nature of the industry.<\/span><\/p>\n ESG stands for Environmental, Social, and Governance. In the context of livestock farming in Vietnam, each pillar has a very specific meaning.<\/span><\/p>\n Environmental focuses on controlling greenhouse gas emissions, managing waste, water, land, energy, and the impact on the environment surrounding the farm. In livestock farming, CH\u2084 and N\u2082O are often two important biogenic greenhouse gas emissions, especially from enteric fermentation in ruminants and livestock waste management. The specific level of contribution depends on the animal species, feed ration, farm scale, manure treatment technology, and operating conditions of each farm.<\/span><\/p>\n Social relates to working conditions on farms, occupational safety, worker welfare, relationships with local communities, and animal welfare practices. For modern or export-oriented supply chains, social factors are increasingly considered an important part of supplier evaluation.<\/span><\/p>\n Governance refers to transparent governance structures, anti-corruption policies, leadership accountability, internal control systems, and the ability to manage ESG-related risks.<\/span><\/p>\n What makes livestock different from many other industries is that the Environmental pillar is often prioritized very early, because the industry is directly linked to biogenic emissions, organic waste, water use, land use, and operational energy.<\/span><\/p>\n These two concepts are often used interchangeably, but there is an important difference in practical implementation.<\/span><\/p>\n At the farm level, carbon neutrality is often understood as a state in which a business measures its emissions, carries out appropriate emission reduction measures, and then offsets the remaining emissions through credible carbon removals or carbon credits. This approach can still allow emissions to occur, as long as the remaining emissions are offset according to accepted standards.<\/span><\/p>\n Net zero is a broader goal and usually requires deep emission reductions across the entire value chain, followed by balancing the remaining emissions with credible carbon removals or other accepted removal measures. Net zero focuses on reducing emissions at the source, while carbon neutrality may be more flexible in using offsets.<\/span><\/p>\n For livestock businesses in Vietnam at the current stage, carbon neutrality may be an intermediate target in some cases, but it requires a clear roadmap, reliable data, and transparent certification standards. Net zero should be seen as a long-term direction, not a target that can be achieved quickly without a data foundation, suitable investment, and reliable measurement capacity.<\/span><\/p>\n At present, Vietnam does not have mandatory ESG reporting regulations specifically for the livestock industry. However, businesses need to monitor related legal frameworks.<\/span><\/p>\n Decree No. 06\/2022\/ND-CP is the legal foundation for greenhouse gas emission reduction and ozone layer protection. Livestock businesses should only conclude that they are subject to mandatory greenhouse gas inventory requirements after comparing their operations with the criteria and list of facilities required to conduct greenhouse gas inventories under current regulations, including Decision No. 13\/2024\/QD-TTg, which promulgates the updated 2024 list of facilities subject to greenhouse gas inventory requirements.<\/span><\/p>\n Circular No. 96\/2020\/TT-BTC provides guidance on information disclosure in the securities market. For listed companies, sustainability content in the annual report is an important foundation for moving toward more structured ESG disclosure.<\/span><\/p>\n Beyond mandatory regulations, practical pressure may come from export partners, investors, credit institutions, modern retail chains, and customers that require proof of a sustainable supply chain.<\/span><\/p>\n The roadmap below is a recommendation based on international practices and the specific characteristics of the livestock industry. It is not a mandatory legal procedure under current regulations.<\/span><\/p>\n The essential starting point is understanding \u201cwhere you are.\u201d Businesses need to conduct a greenhouse gas inventory under Scope 1, Scope 2, and, if possible, Scope 3.<\/span><\/p>\n Scope 1: direct emissions from farm operations, such as livestock, manure management, on-site fuel use, and other direct emission sources.<\/span><\/p>\n Scope 2: indirect emissions from electricity purchased from the grid.<\/span><\/p>\n Scope 3: emissions across the value chain, such as purchased animal feed, transportation, packaging, end-of-life treatment of products, and other related activities.<\/span><\/p>\n At the same time, businesses need to assess overall ESG risks, including water risks, social risks, working conditions, community relations, legal compliance, supply chain transparency, and data governance capacity.<\/span><\/p>\n After establishing a baseline, businesses should set targets that are specific, measurable, achievable, and time-bound. For example:<\/span><\/p>\n Businesses should avoid vague goals such as \u201cbecoming greener.\u201d This is a common mistake that causes ESG plans to fail to move forward because there are no measurable indicators, no responsible owner, and no way to prove progress to partners or auditors.<\/span><\/p>\n An emission reduction plan needs to clearly identify the largest emission sources and prioritize interventions at those points.<\/span><\/p>\n In cattle farming, CH\u2084 from enteric fermentation is a very important emission source. In pig and poultry farming, waste management, energy use, and feed inputs are usually the groups that need close monitoring.<\/span><\/p>\n Possible measures include:<\/span><\/p>\n This is the step where the plan turns into real implementation. Three priority action groups include:<\/span><\/p>\n Waste management: Invest in biogas systems at a suitable scale, manage fresh manure properly, reduce prolonged open storage, and develop organic compost models if appropriate. This action group can help reduce emissions while also improving hygiene and biosecurity.<\/span><\/p>\n Renewable energy: Install solar power on barn rooftops or suitable areas if technical and legal conditions allow. The goal is to gradually reduce dependence on grid electricity and diesel, while stabilizing part of the farm\u2019s long-term energy costs.<\/span><\/p>\n Optimized feed rations: Work with nutrition experts to design feed rations that maintain productivity while improving feed efficiency and reducing nutrient waste. For ruminants, any ration adjustment aimed at reducing methane emissions must be carefully assessed to avoid negative impacts on animal health, productivity, or economic efficiency.<\/span><\/p>\n No data, no ESG. Businesses need to set up a regular data collection system \u2014 at least quarterly \u2014 covering:<\/span><\/p>\n Some farm management software can integrate emissions tracking modules, or businesses can use emissions calculation tools based on methods accepted by competent authorities. Businesses should also monitor guidance from the relevant regulatory authority, currently the Ministry of Agriculture and Environment.<\/span><\/p>\n Based on monitoring data, businesses need to adjust their plans every year. Once emissions have been reduced at the main sources and the remaining emissions are difficult to reduce further in the short term, businesses may consider carbon credits from recognized programs such as Verra VCS or Gold Standard, if the credits are suitable for the emissions scope, have credible quality, and are accepted by partners or certification frameworks.<\/span><\/p>\n However, offsets should not be treated as the first step. A safer approach is to measure first, reduce emissions at the source first, and only then consider offsetting the remaining emissions. This is also the stage where businesses can prepare documentation for international certifications if they aim to export or seek green financing.<\/span><\/p>\n An ESG report is not just a formality. It is a strategic communication tool for partners, investors, customers, and financial institutions.<\/span><\/p>\n A 2026 report should summarize the full journey from baseline to achieved results:<\/span><\/p>\n For businesses with international partners, the report should be prepared using an appropriate framework such as GRI, and may also refer to ISSB\/IFRS S2 if climate risk disclosure is needed for investors or financial institutions.<\/span><\/p>\n The checklist below is a reference roadmap for livestock businesses to review what should be completed before preparing the 2026 ESG report. It is a practical suggestion based on international practices and the specific characteristics of the livestock industry, not a mandatory legal checklist.<\/span><\/p>\n Note: The table above shows target directions based on good industry practices, not guaranteed results. Actual outcomes depend on the scale, animal species, investment level, operating capacity, and specific conditions of each business.<\/span><\/p>\n Under the GRI Standards, livestock businesses may refer to the following groups of indicators:<\/span><\/p>\n For climate risk disclosure, businesses may refer to ISSB\/IFRS S2. TCFD recommendations are still useful for structuring governance, strategy, risk management, and climate-related metrics and targets, but businesses should update toward ISSB\/IFRS S2 if they work with financial partners or international investors.<\/span><\/p>\n Given the specific characteristics of livestock farming, emissions intensity per animal or per kg of product is one of the most important indicators for showing real progress over time.<\/span><\/p>\n Some practical tools businesses can refer to include:<\/span><\/p>\n Emission calculation:<\/span><\/p>\n Businesses may refer to IPCC Tier 1\/Tier 2 methods for livestock emissions inventories, while also monitoring guidance from the relevant regulatory authority, currently the Ministry of Agriculture and Environment. When using international tools such as the Cool Farm Tool, businesses need to check whether they are applicable to the Vietnamese context before using them as the basis for official reporting.<\/span><\/p>\n Reporting templates:<\/span><\/p>\n GRI provides guidance documents by sector and topic. Businesses can use GRI as an initial reference framework if they need to build a clearly structured ESG report.<\/span><\/p>\n Data management platforms:<\/span><\/p>\n For medium and large-scale farms, businesses may consider investing in farm management software that integrates emissions tracking modules to help automate data collection.<\/span><\/p>\n Carbon neutrality verification:<\/span><\/p>\n Businesses may refer to ISO 14068-1 for carbon neutrality claims, ISO 14064 for greenhouse gas inventories and verification, and carbon credit programs such as Verra VCS or Gold Standard if credible carbon credits are needed.<\/span><\/p>\n At present, there is no unified ESG reporting submission process specifically for the livestock industry. Businesses need to monitor the following channels:<\/span><\/p>\n Greenhouse gas inventory reports under Decree No. 06\/2022\/ND-CP apply to facilities included in the mandatory inventory list. Businesses need to check the receiving authority, forms, and deadlines under current regulations applicable to their sector or facility, because management responsibilities may involve several specialized authorities.<\/span><\/p>\n Sustainability information in annual reports applies to listed companies under Circular No. 96\/2020\/TT-BTC.<\/span><\/p>\n Voluntary reports may be published on the company website, sent to partners\/investors, or registered on international disclosure platforms such as CDP if the business targets international markets.<\/span><\/p>\n Recommendation: businesses should closely monitor new legal documents from the Ministry of Agriculture and Environment, the Ministry of Finance, the State Securities Commission of Vietnam, and other relevant regulatory authorities.<\/span><\/p>\n Mistake 1: Starting from the report instead of the data<\/span><\/p>\n Many businesses want to have an ESG report immediately but do not yet have baseline data. A report without a reliable baseline loses credibility with partners and auditors.<\/span><\/p>\nWhat do ESG and Net Zero mean for livestock businesses in Vietnam?<\/b><\/h2>\n
How do the three E-S-G pillars apply specifically to the livestock industry?<\/b><\/h3>\n
What is the difference between net zero livestock and farm-level carbon neutrality?<\/b><\/h3>\n
Which livestock businesses must comply with ESG regulations in Vietnam in 2026?<\/b><\/h3>\n
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<\/p>\nA 7-step ESG roadmap for Vietnam\u2019s livestock industry: from reporting to real action<\/b><\/h2>\n
Step 1: Assess the current emissions profile and ESG risks at the farm<\/b><\/h3>\n
Step 2: Set SMART targets for each stage through 2026<\/b><\/h3>\n
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Step 3: Build a plan to reduce CH\u2084, N\u2082O, and CO\u2082 emissions in livestock farming<\/b><\/h3>\n
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Step 4: Take action at the farm level \u2014 waste management, renewable energy, and feed rations<\/b><\/h3>\n
Step 5: Measure and monitor emissions data regularly<\/b><\/h3>\n
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Step 6: Continuously improve and move toward suitable carbon neutrality targets<\/b><\/h3>\n
Step 7: Prepare and publish a complete ESG report for livestock businesses in 2026<\/b><\/h3>\n
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ESG checklist for livestock businesses: what to complete before the 2026 report<\/b><\/h2>\n
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<\/p>\nFoundation stage \u2014 Complete the baseline if it has not been done in previous years<\/b><\/h3>\n
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Implementation stage \u2014 Standardize data and start emission reduction actions<\/b><\/h3>\n
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2026 reporting stage \u2014 Complete, verify, and publish<\/b><\/h3>\n
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Livestock farms before and after ESG adoption: direction of change<\/b><\/h2>\n
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\n Indicator<\/b><\/td>\n Before adoption<\/b><\/td>\n Direction after adoption<\/b><\/td>\n<\/tr>\n \n CH\u2084 emissions from manure<\/span><\/td>\n Uncontrolled release or not fully measured<\/span><\/td>\n Recovered through biogas if the system is properly designed and operated, which may reduce emissions from manure management<\/span><\/td>\n<\/tr>\n \n Farm electricity source<\/span><\/td>\n Dependent on grid electricity, diesel, or the farm\u2019s existing power source<\/span><\/td>\n Combined with solar power if suitable, gradually reducing dependence on grid electricity\/diesel<\/span><\/td>\n<\/tr>\n \n Organic waste management<\/span><\/td>\n Direct discharge, open storage, or inconsistent treatment<\/span><\/td>\n Treated through biogas, organic compost, or a treatment model suitable for the farm scale<\/span><\/td>\n<\/tr>\n \n Emissions data<\/span><\/td>\n None or rough estimates only<\/span><\/td>\n Measured regularly and stored systematically<\/span><\/td>\n<\/tr>\n \n Energy costs<\/span><\/td>\n Fluctuate with electricity or fuel prices<\/span><\/td>\n May become more stable if the farm generates part of its own energy<\/span><\/td>\n<\/tr>\n \n Access to export markets<\/span><\/td>\n Limited if there is no sustainability evidence<\/span><\/td>\n Improved if the business meets partners\u2019 ESG requirements<\/span><\/td>\n<\/tr>\n \n Access to green loans<\/span><\/td>\n Not yet eligible for consideration<\/span><\/td>\n May become eligible depending on the credit institution and the quality of the documentation<\/span><\/td>\n<\/tr>\n \n Sustainability reporting<\/span><\/td>\n None or fragmented<\/span><\/td>\n Regular ESG reporting under an appropriate framework<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n ESG reporting guidance for agriculture in Vietnam in 2026<\/b><\/h2>\n
ESG indicators to report in livestock farming under GRI and ISSB\/IFRS S2<\/b><\/h3>\n
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\n Indicator group<\/b><\/td>\n What to monitor<\/b><\/td>\n<\/tr>\n \n GRI 305 \u2014 Emissions<\/span><\/td>\n Total greenhouse gas emissions under Scope 1, Scope 2, and Scope 3 if available; emissions intensity per unit of product, for example kg CO\u2082e\/kg live weight<\/span><\/td>\n<\/tr>\n \n GRI 303 \u2014 Water<\/span><\/td>\n Water use, water sources, reused water, and risks related to water sources<\/span><\/td>\n<\/tr>\n \n GRI 306 \u2014 Waste<\/span><\/td>\n Total waste generated, treatment methods, and the share of waste reused or safely treated<\/span><\/td>\n<\/tr>\n \n GRI 401 \u2014 Employment<\/span><\/td>\n Number of workers, turnover rate, working conditions, and labor policies<\/span><\/td>\n<\/tr>\n \n GRI 403 \u2014 Occupational Health and Safety<\/span><\/td>\n Workplace accidents, prevention measures, safety training, and risk control in the farm environment<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Tools and reference materials for agricultural ESG reporting<\/b><\/h3>\n
Reporting process and ESG information submission to regulatory authorities in 2026<\/b><\/h3>\n
Practical challenges in implementing ESG in livestock farming and a more effective approach<\/b><\/h2>\n
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<\/p>\nFive common mistakes when livestock businesses implement ESG for the first time<\/b><\/h3>\n