Environmental, Social, and Governance (ESG) considerations increasingly underpin business strategies and are transforming real estate and the built environment globally. This article explores the significance of ESG, examining current practices and how it impacts Viet Nam’s real estate markets. Understanding the benefits, challenges, and future trends associated will help businesses remain competitive and strive for a more sustainable future.

With Viet Nam's commitment to Net Zero emissions by 2050, ESG has become a key pillar in business development strategies. Covering Environmental (E), Social (S), and Governance (G) factors, ESG sets the standards for sustainability and community impact. ESG in real estate reflects a dedication to responsible and sustainable practices across the entire property lifecycle.

Companies striving for carbon neutrality face growing pressure, making it essential for developers to implement clear action plans for ESG integration. In real estate development and management, adopting ESG principles not only drives sustainability but also enhances economic efficiency by reducing costs and attracting tenants.

Discover Savills Viet Nam key ESG achievements in property management for 2024.

1. Environmental Strategy

The Environmental (E) factor in real estate focuses on managing and minimising project detrimental impacts on the environment, from planning and initial design to operations.

Partnering with Developers in green building transformation

Each green certification—whether EDGE, LEED, Green Mark, or Lotus—comes with unique requirements. Savills supports developers in upgrading building facilities, focusing on key areas like maintenance, air quality control, waste management, and energy conservation. Through regular monitoring and evaluation, Savills ensures compliance with energy regulations, tenant expectations, and green certification standards.

Savills Viet Nam managed projects achieving green building certifications in 2024.

Empowering Management teams to implement sustainable operations initiatives

In 2020, Savills Property Management officially launched an annual ESG program. The initiative aims to encourage Savills-managed projects to implement innovative measures that save water, reduce energy consumption, and lower carbon emissions in line with corporate’s strategy. It also seeks to shift partners’ perceptions of green operations, thereby delivering sustainable value across the real estate sector.

Projects will develop annual operational plans, setting targets for energy cost optimisation and carbon emission reduction. Implementation is monitored and evaluated monthly by Headquarters experts, leading to recognition for projects with outstanding ESG achievements

Encouraging community participation via green campaigns

Since residents and tenants are the primary users of utilities and energy consumers in buildings, Savills encourages community to participate in long-term sustainability strategies through multiple green campaigns:

• Q1/2024: Earth Hour - Calling for turning off non-essential lights and devices to save energy. 
• Q2/2024: Plastic Detox – Reducing plastic waste, encouraging use of eco-friendly recycled materials. 
• Q3/2024: Recycle Day – Recycling, waste sorting, and reusing old items to reduce environmental waste.

ESG Journey 2024 of Savills Property Management

2. Social strategy

As global social issues become more urgent, the social (S) factor in ESG grows increasingly important for real estate. There are many opportunities for buildings and stakeholders to increase social values of the project and its community, from supporting activities that emphasis cultural diversity to establishing vibrant community spaces within projects.

Connecting community and promiting diversity and inclusion

Savills regularly organises events and periodic activities based on residents' or tenants' interest. This helps build strong communities and creates unique project identity and value.

Investing in human resource

Savills ensures all staff are trained and certified according to regulations while receiving comprehensive benefits and career development guidance.

Collaborating with charitable organisations 

Savills has partnered with many reputable organisations, including the Blue Dragon Children’s Foundation, to support education and training initiatives. We also strive to expand and promote meaningful social campaigns within the communities of the projects we manage.

Beyond fundraising and community donation campaigns, Savills is committed to annual education and training programmes, helping children continue their learning journey and personal development.

Read More:

• Gift of Happiness 2023 by Savills Property Management

3. Governance strategy

The Governance (G) factor establishes the foundation for transparent, professional, and effective management. The G factor is demonstrated through legal compliance, clear process application, and maintaining high ethical standards in all activities.

Ensuring compliance in operational management

Savills stays up to date with legal frameworks and policies to provide informed advice, helping developers make decisions that align with regulations and the specific characteristics of the projects we manage.

From August 2024, the Housing Law 2023 officially takes effect, introducing significant changes in housing development and condominium management. In response to updates regarding service fees and revenue from common areas, Savills has worked closely with Developers or Building Owner’s Committees to refine operational strategies, ensuring legal compliance and transparent communication with residents and tenants.

Ensuring transparency and ethical standards

Savills emphasises transparency and fairness in management between Savills, Developers, and residents/tenants.

Conclusion

With a strategic vision and strong commitment to sustainability, Savills leads the way in integrating the ESG model into professional and systematic property management.

Contact our Property Management Department to learn about sustainable operational solutions.