Simplifying green transition with practical solutions and recommendations

Energy is the lifeline of development and growth indispensable in the global economy's 4.0 era, yet it is also the root cause of the greatest threat posed by climate change. Energy is a broad-spectrum factor, encompassing common energies such as electricity, heat, and chemicals, as well as fossil fuels such as oil, coal, and natural sources like wood and water. 

As an entity deeply concerned about the environment, InterLOG has been actively involved in numerous programs, collaborating with experts and government ministries on the national green transformation journey, aiming to eliminate carbon emissions by 2050 as committed by Vietnam at COP26. In fact, every manufacturing enterprise emits the largest greenhouse gasses in the 'energy' pillar, a broad category ranging from production activities to infrastructure and logistics operations.

1. Understand Your Business's Emissions

To efficiently transition to green for your business, focus on this category and follow the recommended roadmap. Firstly, understanding your business's emission status, whether through preliminary greenhouse gas inventories or through third-party assessments, is crucial and effective for devising reduction plans and goals.

2. Set Objectives and KPIs

Based on inventory data, setting objectives and Key Performance Indicators (KPIs) to monitor progress depends on each business's needs. A common approach is to research industry emission scales to determine suitable figures. Some businesses exporting goods to the EU, under mechanisms like CBAM or EUDR, are compelled to meet certain environmental protection requirements, thus requiring corresponding objectives and KPIs. Continuously evaluate KPIs and adjust to identify areas for improvement.

3. Collaborate with Suppliers and Partners

To reduce costs and optimize resources, collaborate with suppliers and partners sharing commitments and visions for sustainability. Encourage them to implement environmentally friendly practices and work together to optimize the entire business supply chain to minimize environmental impacts.

4. Apply Technology and Innovations

Leverage advanced technologies such as AI and data analytics to optimize your supply network and logistics. Explore solutions for route planning, energy management, and waste minimization. Technology can provide valuable insights and drive efficiency improvements, benefiting both the environment and the business.

​​5. Integrate Sustainable Development into Corporate Culture

Finally, embed sustainability into the corporate culture. Train and empower employees at all levels to make environmentally conscious choices. Promote responsible activities in the workplace and encourage employees to propose eco-innovations, fostering collective commitments to build a sustainable future. Surveys show that businesses with sustainability-related cultures tend to foster stronger employee engagement and dedication. 

Streamlined and effective solutions, widely piloted in many factories and industrial parks worldwide, include:

• Process Optimization: Analyzing and optimizing production processes can often identify opportunities to reduce energy waste. This may involve streamlining workflows, minimizing unnecessary steps, and deploying more efficient heating, cooling, and ventilation systems.
• Integration of Renewable Energy: Investing in on-site renewable energy sources such as solar panels or wind turbines helps reduce reliance on fossil fuels and decrease carbon emissions. Industrial parks can explore shared renewable energy infrastructure to benefit multiple companies.
• Cleaner Fuels: Transitioning from traditional fossil fuels like coal to cleaner alternatives such as natural gas, solar power can immediately reduce emissions. Additionally, exploring biofuels or hydrogen fuel cells as substitutes may result in even lower emissions.
• Waste Minimization: Implementing lean production measures and waste reduction strategies such as reducing scrap and optimizing cutting processes can significantly reduce waste and related emissions.
• Efficient Material Usage: Choosing resource-efficient materials and exploring opportunities to substitute materials with lighter or lower carbon alternatives can contribute to emission reduction.
• Circular Economy Practices: Applying circular economy principles such as reuse, recycle, and remanufacture can extend the life cycle of materials, reduce waste, and decrease the need for raw material extraction and processing, which often consume significant energy. 
• Infrastructure Management Improvements: Deploying smart building technologies for lighting, heating, cooling, and ventilation can optimize energy use in factories and industrial facilities.
• Integration of ESG Standards: These standards promote businesses' sustainable development goals, with the environment being one of the three main pillars. They offer numerous benefits when recognized widely worldwide.

Green transition is not only an environmental responsibility but also an opportunity to enhance brand image, improve operational efficiency, and gain competitive advantages for businesses. With the practical solutions and recommendations outlined in this article, you can embark on an efficient and straightforward green transition journey. 

• Green transition is a process that requires commitment and efforts from the entire business.
• Start with small steps and progress incrementally.
• Leverage support from organizations, experts, and governments.

By acting together, we can build a green and sustainable future for ourselves, our businesses, and future generations.