Organic farming, solar energy utilization, application of a circular economy model... Vinamilk has become the first dairy company to have a farm certified as carbon neutral internationally.
At the end of May, the Nghe An Dairy Farm and the Nghe An Dairy Factory became the first two units of Vinamilk, and also of the Vietnamese dairy industry, to be awarded the "Carbon Neutrality Certification according to PAS 2060:2014 standard" by independent international assessment organizations.
On this occasion, the leading Vietnamese dairy company also announced its roadmap towards Net Zero 2050 with the action program "Vinamilk Pathway to Dairy Net Zero 2050" to support Vietnam's commitment to achieving net emissions of "zero" by 2050 (Net Zero 2050), as declared by the Prime Minister at the COP26 Climate Change Conference held in the UK in 2021. Accordingly, Vinamilk will reduce greenhouse gas emissions by 15% by 2027, reduce and neutralize 55% of emissions by 2035, and aim for net emissions of zero by 2050.
Reports indicate that livestock farming and agriculture have a direct impact on the environment and are among the sectors that need to take the lead in reducing greenhouse gas emissions. Specifically for the dairy industry, increasing demand, expanding dairy herds, and developing dairy farming models – especially in developing countries – mean that greenhouse gas emissions are also increasing. According to Mr. Piercristiano Brazzale, President of the IDF (International Dairy Federation), at the Global Dairy Conference held in the UK last June, sustainable development goals are a challenge and an urgent requirement for the dairy industry in the context of the global response to climate change. This is also an issue that businesses need to consider very seriously.
In fact, Vinamilk has been implementing its sustainability program for over 15 years. With the goal of proactively securing a domestic supply of high-quality fresh milk, Vinamilk launched its first farm in Tuyen Quang in 2007. "For many years, Vinamilk has recognized that agriculture and dairy farming directly impact the environment. To achieve sustainable production, we need a strategy of building green, environmentally friendly farms," a company representative stated.
To put this into practice, in 2015, the company was the first to obtain the Global Good Agricultural Practices (Global GAP) certification for its dairy farm in Nghe An. To date, all of its farms have achieved this certification. Also under its sustainable development strategy, Vinamilk has invested over $300 million in initial capital for three Vinamilk Green Farm ecological farms in Tay Ninh, Quang Ngai, and Thanh Hoa, with a herd of nearly 20,000 cows, and this number continues to increase. This model is also considered by many international experts as a pioneer in sustainable and environmentally friendly agriculture.
At Vinamilk farms, the company applies the principle that the output of one process is fully utilized as input for another, thereby reducing resource exploitation, waste treatment costs, and environmental pollution in the construction and operation of the farm. Accordingly, all waste generated from livestock farming is collected and treated with a biogas system to create organic fertilizer for crops and improve soil; as well as being used as fuel to heat water for pasteurizing milk for calves, drying grass, and serving farm operations. At Green Farm Tay Ninh alone, with 8,000 cows and calves and 500 tons of manure produced daily, the biogas system not only helps address environmental issues but also saves over 100 million VND in electricity costs each month.
In its farming and livestock operations, moving towards more sustainable models, the company's farms are in the process of minimizing their environmental impact. Vinamilk Organic Dalat Farm, since its inauguration (early 2017), has been certified by the global organization Control Union (Netherlands) as the first European-standard organic dairy farm in Vietnam. Using organic methods, the company spent three years transforming the land to its most natural state: free from chemicals, pesticides, herbicides, and chemical fertilizers.
Not only the farms in Tay Ninh or Da Lat, but all 13 of Vinamilk's farms nationwide are transitioning to green energy. Instead of fossil fuels or hydropower, Vinamilk has applied environmentally friendly technologies such as biomass energy (biogas) and renewable energy. Currently, 100% of Vinamilk's farms have fully installed solar energy systems, contributing a large proportion to total energy consumption.
A crucial step in the process of reducing emissions is carbon sequestration. Most farms of Vietnam's largest dairy company dedicate 50-70% of their land to planting trees and developing ecologically regulating water bodies... such as at Green Farm in Tay Ninh and Quang Ngai. Greenery acts as a natural biological barrier, helping to limit impacts on the surrounding ecosystem and contributing to climate regulation for the entire area. In Tay Ninh, one of the hottest provinces in the country, Vinamilk's farms can maintain a temperature of 27 degrees Celsius in the dairy cow barns during peak season thanks to the surrounding greenery. Simultaneously, the company actively invests in planting trees, creating green areas, also known as "carbon sinks," to absorb and neutralize greenhouse gas emissions. Specifically, programs such as the "1 Million Green Trees for Vietnam" Fund (completed in 2020 with 1.121 million green trees), the Net Zero Tree Planting Project (2023-2027, with an investment of 15 billion VND), and the Mangrove Reforestation Project at Mui Ca Mau National Park... According to Vinamilk's announcement, this is also a green tree fund that helps the company balance the costs of its factories and farms in the future.
In Vietnam, Vinamilk is one of the businesses that has made many positive contributions to the more sustainable development of the dairy industry, while strongly promoting the process towards Net Zero 2050. Since 2012, Vinamilk has published sustainability reports according to international standards, to accurately assess its practices.
Vinamilk is also the first Vietnamese dairy company to participate in the global dairy industry initiative on Net Zero - Pathways to Dairy Net Zero, which brings together 180 organizations accounting for more than 40% of global milk production. The initiative was founded by the International Dairy Federation (IDF), the Dairy Sustainable Development Framework (DSF), the Global Dairy Platform, etc., with the goal of strengthening or introducing solutions to reduce emissions in the global dairy industry and in individual countries to achieve Net Zero.
"We are very much looking forward to welcoming Vinamilk to this process, as a leading and pioneering enterprise in Vietnam," said Brian Lindsay, Director of the Dairy Sustainable Development Framework (DSF), expressing hope that deeper collaborations with businesses like Vinamilk will provide opportunities for dairy businesses and industries in various countries to achieve Net Zero.
After more than 47 years of development, Vinamilk is currently among the top 40 largest dairy companies in the world by revenue and the top 6 most valuable dairy brands globally, with an estimated value of $3 billion. According to the company's representatives, this success is partly due to the sustainable development vision that the company set out decades ago. Ms. Mai Kieu Lien, General Director of Vinamilk, shared: "Looking back on the journey we have taken following the sustainable development orientation, Vinamilk realizes that this is the right direction and we made decisions very early on." The CEO of Vinamilk also believes that consumers are the driving force behind the company's commitment to sustainable development, as this is a challenging task.
Experts believe that Vinamilk's steps in practicing sustainable development throughout its entire production chain, and specifically at its farms, not only spread positive messages to the domestic business community but also contribute to the global dairy industry. Along with increasing brand value, Vinamilk recently became the only representative from Southeast Asia to be ranked in the Top 5 most sustainable dairy brands globally by Brand Finance (according to the Sustainability Perception Value Index - SPV). Notably, Vinamilk achieved the highest sustainability perception score in the Top 10 (with 5.75 points), surpassing many other major names in the global dairy industry, especially considering the relatively young Vietnamese dairy industry compared to many other countries, particularly in terms of sustainable development. " Sustainability is becoming a crucial trend. Vinamilk is promoting sustainable development in the food industry, accurately addressing the needs of consumers who are increasingly conscious in their food choices. As a result, they remain the most popular brand among Vietnamese people," commented Alex Haigh, Managing Director for Asia Pacific at Brand Finance. Participating in the forum "Green Development - The Right Approach for Vietnamese Brands" within the framework of the Announcement Ceremony of the Top 100 Most Valuable Brands in Vietnam 2023, Ms. Bui Thi Huong - Director of Human Resources, Administration and External Relations at Vinamilk, affirmed: " Sustainable development is at the core of improving the quality of life, health of people and preserving valuable resources for future generations. Vinamilk focuses on achieving this goal by providing high-quality products, simultaneously developing green elements, and actively participating in activities for the environment and the community."
Ms. Bui Thi Huong and other speakers shared their insights at the seminar "Green Development – A Suitable Approach for Vietnamese Brands" organized by Brand Finance.
Content: Hoang Anh - Design: Thai Hung
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