ESG – A “Novel” Keyword Emerges at PNJ’s Annual General Meeting
On April 16, Phú Nhuận Jewelry Joint Stock Company (stock code PNJ) held its annual General Meeting of Shareholders. At the meeting, Ms. Cao Thi Ngoc Dung, Chairwoman of the Board of Directors, highlighted a remarkable keyword that does not directly reflect actual revenue but rather aims to enhance “brand value.” The keyword is: ESG activities.
“Brand value has now reached nearly 500 million USD, and the Company aims to achieve a brand value of 1 billion USD. To realize this goal, PNJ is developing ESG activities to further enhance the Company’s brand value,” Ms. Dung said.
ESG stands for Environment, Social, and Governance. It is a term denoting a vision and tangible actions toward “sustainable development.” Net Zero, Carbon Neutrality, Plastic Neutrality, Green Economy, Circular Economy, Green Finance… all serve the purpose of “sustainable development.” ESG is the most prevalent global framework for implementing, reporting, and monitoring progress towards sustainability.
ESG has only gained significant attention worldwide in the past decade or so. In Vietnam, only about 20 out of nearly 700 listed companies on the stock exchanges currently provide separate ESG reports. PNJ first published a separate ESG report (called the Sustainability Report) in late October 2023, summarizing its ESG activities in 2022. Thus, according to the annual schedule, PNJ will release its 2023 ESG report in October 2024.
Ms. Dung’s statement at the AGM on April 16 suggests that ESG is a central strategy in 2024 for the leading gold and jewelry company in Vietnam.
Since the Vía Thần Tài in 2024, the price of gold bars and gold rings in Vietnam has consistently broken past records, primarily due to the impact of rising global gold prices amidst escalating risks of conflict and war in several regions.
“Gold price” has become one of the most searched keywords among the public in recent weeks.
In this context, a question arises: how does the income of employees working in gold and jewelry companies such as PNJ compare?
Thanks to one of the key requirements of transparency in ESG reporting, PNJ’s Sustainability Report 2022 clearly discloses the income of its employees.
Income of PNJ Employees and Managers in 2022
Sustainable Development Goal 8 (SDG 8) recognizes the importance of sustained, inclusive, and sustainable economic growth and high levels of economic productivity for creating quality and well-remunerated jobs.
According to PNJ’s 2022 ESG report, ensuring economic well-being for employees is a crucial mission and a commitment to the company’s sustainable development. Therefore, PNJ has focused on developing comprehensive welfare policies and providing training and development opportunities for its staff.
The report shows that the income of male and female employees at PNJ in 2022 was 18.25 and 14.98 million VND, respectively. Notably, the average income of male and female managers was 78.07 and 74.69 million VND, respectively. Remarkably, these figures indicate a rising trend in the period 2020 – 2022.
| Male Employees | Female Employees | Male Managers | Female Managers | |
|---|---|---|---|---|
| 2020 | 12.75 | 10.96 | 68.54 | 68.55 |
| 2021 | 13.5 | 12 | 72.9 | 70.2 |
| 2022 | 18.25 | 14.98 | 78.07 | 74.69 |
Compared to the average income of Vietnamese people in 2022, the income of PNJ employees is significantly higher.
Specifically, according to the General Statistics Office, the average monthly income of employees in 2022 was 6.7 million VND. Thus, the amount received by PNJ employees each month is higher by a factor of 2 to 16 compared to the average income of nationwide employees in 2022.
PNJ shares the view that “People are the most valuable asset of the enterprise,” considering salary and staff benefits as the most effective investment factor. Additionally, the company continuously offers training and human resource development programs to enhance skills and knowledge, meeting all requirements and new challenges in the labor market.
Returning to the AGM on April 16, PNJ’s leadership also revealed that the profit margin of gold bar trading is less than 1%. Coupled with the ESG strategy as analyzed, it is evident that the high income of PNJ employees and managers is not solely driven by the “surge” in the price of gold rings and gold bars, as many might assume.
Currently, the new ESG reporting period has not yet commenced, and gold prices may continue to fluctuate significantly depending on the global situation. However, with the after-tax profit for 2023 already announced at 1,800 billion VND, will the 2023 income of PNJ employees and managers once again be an impressive figure?
