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What is green production? What are some of the benefits of greening in production?

What is green production? What are some of the benefits of greening in production?

In the context of increasing awareness of environmental protection and sustainable development, the adoption of green production is becoming an undeniable trend in industries. Green production not only helps to minimize adverse impacts on the environment but also brings many economic and social benefits. In this article, join RX Tradex to learn about what is green production and some of the benefits of greening in production today.

1. What is green production?

What is green production? Green production (also known as sustainable production or ecological production) is a method of producing goods and services that focuses on minimizing negative impacts on the environment and society. The goal of green manufacturing is to optimize the use of natural resources, minimize the amount of waste, limit pollution, and create safe and healthy products for consumers.

Businesses often adopt measures such as using recycled materials, saving energy, using clean technology, and improving working conditions to achieve green production goals. This not only helps protect the environment but also increases the competitiveness and brand reputation of enterprises in a market that increasingly puts environmental protection as the top criterion.

2. How a business can practice green manufacturing

To be able to practice green production, enterprises need to implement measures and policies in accordance with the criterion of “minimizing negative impacts on the environment and society”. Here are some specific solutions that businesses can apply to green manufacturing practices:

2.1. Use of renewable energy

An energy audit is an effective and easy method to start building an environmentally conscious facility. The energy audit process begins with an assessment of the entire amount of energy consumed to identify areas of waste. After completing the audit, businesses can identify the most effective measures to minimize this waste. Measures such as using energy-efficient lighting systems or replacing outdated appliances can be taken to optimize energy efficiency.

Many businesses begin the improvement process by switching to LEDs. LEDs consume between 25 and 80% less energy than traditional incandescent lamps and last about 25% longer. Converting the entire LED lighting system can help significantly reduce energy costs.

During an energy audit, manufacturing facilities may also consider switching from a current energy source to a renewable energy source. Renewable energy sources include wind power, solar power, hydroelectric power, and power from landfill gas. Switching to renewable energy sources  can be costly initially, but in the long run, they can save a significant amount of money.

2.2. Reduce waste and optimize waste management

To optimize business operations, businesses need to conduct waste audits to ensure that they do not remove valuable materials that could be recycled or reused for other projects. Minimizing waste and waste not only results in cost savings but also enhances the efficiency and sustainability of the production facility. Over time, reducing the facility’s overall waste will bring many economic and environmental benefits.

2.3. Use of non-toxic materials

In addition to reducing waste and saving energy, many businesses are turning to environmentally friendly materials. Instead of using composites that can harm the environment, businesses can opt for cleaner and safer materials.

As can be seen in the mattress industry, many brands are replacing petroleum-based foam with foam derived from vegetable oil. This helps reduce carbon emissions and reduce environmental pollution, while ensuring products are safe for consumers.

3. Some benefits that green manufacturing brings to businesses

The application of green production processes in the manufacturing sector not only brings many benefits to businesses but also helps optimize comprehensive benefits for the environment. The application of green manufacturing practices has proven that investing in environmental improvements not only helps businesses save costs but also creates many other sustainable values. It is important that by looking at the “big picture” and focusing on environmental issues, businesses can reap great value for themselves and move towards more sustainable development. Here are some of the benefits that green manufacturing brings to businesses:

3.1. Maximum cost savings

Switching to environmentally friendly production methods not only saves costs but also brings many other benefits. For example, replacing traditional incandescent bulbs with LED bulbs and CFLs not only reduces energy costs but also helps protect the environment.

In addition, the use of EnergyStar devices also helps improve the operational efficiency of your business. By reducing energy consumption, it not only makes the business save costs but also contributes to protecting the surrounding environment.

3.2. Improve reputation in the market

When taking measures to run a green and energy-efficient business, the business not only shows customers concern for the environment and the surrounding community, but also contributes to efforts to protect the earth, bringing the common benefit to the globe.

These efforts not only resonate positively with consumers but also help businesses build public trust. Over time, this trust can translate into a significant number of loyal customers.

3.3. Meet consumer needs

Consumers are becoming more and more aware of the negative impact of production activities on the environment. This awareness motivates them to seek goods produced from sustainable materials and in environmentally friendly methods. By moving to green operations, manufacturers not only meet this demand, but also maintain their competitive advantage and increase their capital investment.

3.4. Create a safe working environment

Over time, running a green business will create a better working environment for all employees. This not only enhances the morale, productivity and pride of the company, but also affirms the commitment of the business to safeguarding the future of the Earth. Adopting green technology, recycling options, eco-friendly cleaning products, paperless communication and e-payroll are important measures that reinforce this commitment.

3.5. Bring many tax benefits

Sustainable manufacturing methods not only make businesses eligible for tax credits and deductions, but also open up opportunities to participate in state and federal-run tax relief programs, which aim to assist companies in reducing their carbon footprint.

Taking steps towards sustainability brings many positive benefits to businesses such as improving brand image, creating a cleaner, safer working environment and increasing profits.

4. Examples of green production

The drive towards green development has not only become part of many businesses’ social responsibility but also an important factor to maintain relevance in the business environment. With growing concern about environmental issues, to participate more deeply in global supply chains, businesses can only solve green initiatives in production and services.

Therefore, finding more creative ways to promote a friendly environment is necessary. Many businesses are now integrating green practices into every aspect of their business. Here are a few examples of some of today’s large enterprises that are implementing green manufacturing:

4.1. Vinfast

One of the enterprises strongly developing under the green production model, it is impossible not to mention Vinfast. Currently, Vinfast is one of the pioneers in developing a green economy in Vietnam, committed to sustainable development through the production of electric vehicles and battery technology integrated with renewable energy.

VinFast has made a breakthrough and bold transformation, completely shifting to electric vehicle production and quickly completing the electric vehicle ecosystem with a full range of products from cars and electric motorcycles to buses and electric bicycles. They have launched to the market with 15 electric motorcycle models from popular to high-end, 7 electric car models spanning all segments, and VinBus electric bus system serving millions of daily trips in Hanoi and Ho Chi Minh City, significantly reducing carbon emissions to the environment.

It can be seen that Vinfast is gradually asserting its position in the market, catching up with the trend of electrification in transportation and promoting a green lifestyle that is spreading globally.

4.2. Unilever

Unilever Vietnam has also initiated and built a green production model through various forms, starting from the sorting and collection of plastic waste. This is an important step in helping plastics be reused in the economy, significantly cutting carbon emissions from the manufacturing process.

According to statistics, Unilever Vietnam has reduced virgin plastic by 55%, 62% of recyclable product packaging and 100% of rigid plastic packaging using recycled plastic. In addition, the business plans to eliminate fossil fuels from cleaning and laundry product formulations. To date, about 96% of Unilever Vietnam’s home care products contain biodegradable ingredients.

4.3. Textile Association (Vitas)

The Vietnam Textile and Garment Association (Vitas) has actively implemented a green and environmentally friendly production model for its member enterprises. Specifically, businesses are required to reduce the amount of waste, change habits and technologies from using fossil energy to bioenergy and renewable energy.

Vitas also cooperates with the World Wide Fund for Nature (WWF) to implement the project “Greening Vietnam’s textile and garment industry through improved water management and sustainable energy”, with the goal of improving water quality and sustainable energy use. At the same time, this project supports industrial parks to access the “green credit” package to invest in specialized industrial parks for the textile and garment industry.

4.4 Heineken

Heineken is one of the world’s largest beer brands, as well as a prime example of promoting sustainability and environmental protection.

To combat climate change and maintain sustainable development, Heineken has proactively implemented greener measures in all stages of production and distribution. Currently, 5/6 of Heineken’s breweries have switched to 100% renewable energy. During the packaging process, 100% of beer bottles and kegs are reused, along with 100% recycling of beer cans.

Heineken has also optimized its product distribution process, reducing CO2 emissions by up to 2,000 tonnes.

Thanks to the implementation of recycling, Heineken has almost no landfill waste, with 99% of waste reused and recycled in the production chain. This not only benefits the business but also benefits society, especially for the local community where the company’s projects are implemented.

5. Summary

It can be seen that the practice of green production brings businesses many clear economic, social and environmental benefits. The role of green production makes an equally important contribution to helping businesses maintain a competitive position and develop more sustainably.

Through this article, RX Tradex hopes to provide an overview of what green manufacturing is and its benefits, while encouraging businesses to adopt green practices to contribute to global sustainable development. Greening in production is not only a social responsibility but also an important factor to help businesses develop sustainably in the future.

In addition, to know more green manufacturing practices to improve your capacity and participate in the global supply chain, you can register to attend the exhibition on Vietnam’s leading manufacturing machinery and technology at  Vietnam Manufacturing Expo 2024 which will be held on August 8 in Hanoi. Don’t miss the opportunity Register for the most spectacular exhibition of the year here.