Century: Risk management for sustainable development
With a solid foundation in reporting techniques, an abundance of available information as well as ongoing independent assurances, Century Synthetic Fiber Corporation (code STK) always maintains a good position in sustainability reporting polls.
For many years, Century has always shown its steadfastness with the goal of sustainable development and achieving worthy results. Typically, in the context of many challenges for the industry, Century is still showing flexible adaptation and good resilience, recording bright spots such as attracting orders for value-added recycled yarn. increased significantly with Japanese customers, continuing to expand the customer file with 12 new customers in the first 9 months of 2023.
These practical efforts are “recorded” and excellently conveyed by Century through annual reports and sustainable development reports, thereby providing to stakeholders and the public. Invest in a well-informed picture. That is also the main reason why the Company’s annual report reached the Top 20 best annual reports of 2023 in the non-financial group; continuously in the Top 10 best sustainable development reports – within the framework of the Listed Enterprise Voting, and this year, Century’s sustainable development report continues to be in the Top 5, achieving the category Award for Most Complete Report.
With the theme “Risk management for sustainable development”, Century continues to consistently demonstrate environmental and social risks as well as the ways the Company manages these risks. According to the assessment of the Voting Council, with the “solid” use of GRI reporting standards similar to previous years, Century has systematically demonstrated its initiatives and efforts in its sustainable development path.
In addition, Century has provided numerous guarantees for environmental and social reporting indicators. The assurance is done from many different sources and creates a relatively good level of reliability.
A new feature this year of Century is its participation in the project of disclosing its carbon emissions within the framework of the CDP project (Carbon Disclosure Project). Century is one of the very few listed businesses that disclose information under the CDP framework. Another strong point of Century is the publication of ESG indicators, especially environmental indicators, in a complete and highly quantified manner.
Notably, according to USFIA Benchmarking Study 2023, fashion brands have increased the proportion of purchases from Vietnam from 96% (2022) to 100% (2023). This result comes from the need to spread risks about the supply of input materials, so American fashion companies tend to move and seek supplies from many other countries, besides China.
Most of these brands have commitments and have carried out stronger communication campaigns about their responsibility towards the environment, human rights, and society. Therefore, Vietnamese businesses that meet ESG standards well, such as Century, will have a great opportunity to become strategic supply partners for this brand, thereby reaching out for development and integration as soon as market conditions are ripe.
According to Century’s roadmap, the Company continues to research and launch diverse, environmentally friendly, high-quality products, yarns with special features that create added value for consumers. uses (such as fire-resistant, highly elastic, moisture-absorbing, UV-resistant yarns…); continue to conquer and expand new markets in Europe, America, and Mexico (with direct export activities).
In addition, the Company also promotes sales in the form of on-site export to customers making fabrics for garment exports to the US, Canada, Europe, and Japan to welcome orders moving from China to Vietnam. In addition, the Company also plans to increase the proportion of renewable electricity in the total power supply to meet the goal of reducing greenhouse gases and gradually making a commitment to reduce greenhouse gases under the SBTi initiative.
For the Unitex project, it is being implemented on schedule to complete the import of machinery in the first quarter of 2024 and complete construction at the end of the quarter. Unitex factory phase 1 (36,000 tons/year) is expected to begin operating in the second quarter of 2024. This is a project that many analysts expect, when put into operation, will help Century increase its total capacity to 96,000 tons/year to anticipate the growing demand for recycled and virgin yarn, in both markets. export and domestic markets. It is expected that when the Unitex factory is completed in 2025, Century will become the second largest yarn manufacturer in the country.
This will be the premise for Century to catch up with the green fashion trend when major brands commit to taking action to combat climate change and use recycled yarn at a rate of 50 – 100% by 2025 and reserve resources to prepare for the time the market recovers.
Source: Vietnam Investment Review