In the context of climate change and the exhaustion of natural resources is becoming increasingly serious, model industrial traditional no longer meet the requirements for sustainable development. Industrial green has emerged as a solution not only to help businesses minimize the impact on the environment, but also opens up great opportunities to optimize costs, enhance brand reputation, meet international standards.
With outstanding benefits, green industry is becoming an inevitable trend that every business need to learn and apply. This article Lac Viet Computing will help you understand the concepts, benefits, solutions deployed in a most detailed way.
1. The rapid development of the industry and the implications environment
In the past decades, the rapid development of the industry has become the main driving force of growth for the global economy. However, the fruit of this boom is the negative impact on the environment:
- Environmental pollution: industries use fossil fuels and the production process traditionally has discharged large amount of CO2, pollutants, air, water and land. According to the report of the united Nations, industry accounted for over 21% of the total CO2 emissions globally in 2022.
- Depletion of natural resources: The extraction of excessive source of non-renewable resources, such as petroleum, coal, ore, metal pushed into the ecosystem status of the alarm.
Climate change is increasingly serious, with the phenomenon of extreme weather such as storms, floods, droughts occur more often. The international community has realized that continuing to maintain the industrial model old harm the environment, directly affects the health and quality of life of people.
Global trends in the transition to a sustainable industrial
Before the negative impact from industrial goods, the government and businesses around the world are strong to the green industry. This is the core strategy helps to balance between economic development and environmental protection.
- International commitments: the Paris Agreement in 2015 has set a goal to limit the global temperature increase below 2°C, requires countries reduce greenhouse gas emissions.
- Business first: Many large corporations such as Tesla, Unilever, Apple was the transition to sustainable production and use of renewable energy, reduce emissions.
2. Industrial what is green?
2.1 Concept
Industrial green is a model of production and operation is designed to minimize negative impact to the environment. Focus on the efficient use of resources, apply modern technologies reduce greenhouse gas emissions, towards the goal of sustainable development.
Not merely reduce pollution, green industry, also include the transition to the production process clean, use renewable energy, waste recycling.
Why green industry is an inevitable trend?
- Economic development with environmental protection, allows businesses to maintain profitability while reducing the negative impact on natural resources and ecosystems.
- Meet legal requirements and international standards: The government is to issue regulations more stringent environmental requirements, business application solutions, green production.
- The business development not only enhance the brand value but also attracted the partners and international investors.
2.2 why green industry is a part of the future?
- The need of sustainable transformation: climate change and declining natural resources are the urgent problem worldwide, requiring every industry must transition to production models green to protect the planet.
- Global trends: Many countries, international organizations have set out strict standard on the environment, require businesses to apply green industry to remain active on the international market.
- Economic benefits long term: Although the cost of the initial investment is high, but businesses save resources, reduce energy costs, waste disposal, thereby creating economic value and sustainable.
Practical example:
- Tesla: all factory production of Tesla are using renewable energy, manufacturing process, closed, ensures minimum impact on the environment.
- IKEA: Use 100% recycled wood and solar energy in the global supply chain.
3. Characteristics of the green industry
3.1. Use of renewable energy and raw materials sustainable
- Renewable energy: Priority use of renewable energy sources such as solar, wind, hydro and biomass instead of fossil fuels. This helps to reduce greenhouse gas emissions, securing energy supply and sustainable. The factory production of Apple in many countries operate entirely by renewable energy, contributing to reduce the millions of tons of CO2 each year.
- Raw sustainable: Use raw materials have the ability to renewable, recyclable or biodegradable, helping to minimize the exploitation of natural resources and reduce waste. IKEA-use recycled wood, renewable raw material in the manufacture of furniture, down more than 50% of new wood consumption from 2020.
3.2. Process clean production, waste minimization
- Clean production: Production process using advanced technologies to reduce consumption of energy, water and raw materials. Businesses apply this model also reduce the amount of waste gas, waste water, solid waste. Factories of Unilever in Vietnam to apply technology, cleaner production, saving 40% energy, reduce 60% of the waste water in the production of food, consumer.
- Minimize waste: Promote production model circulation, in which the waste from one process can become raw material for other processes. The brewery in Europe re-use grounds beer feed or raw materials for the cosmetic industry.
3.3. Apply digital technology to optimize efficiency
- Application IoT (Internet of Things): IoT helps businesses monitor, manage manufacturing operations in real time, from which optimize processes, reduce waste, energy, materials. The sensor IoT in the factory of Siemens help detect device energy consumption unusual and optimize performance machinery.
- Artificial intelligence (AI): AI is used to analyze production data to predict the demand for raw materials, process automation, help increase performance, reduce energy consumption. A factory car maker uses AI to optimize supply chain, reduce the amount of inventory not needed, saving millions of DOLLARS per year.
- Blockchain technology: Blockchain helps to increase transparency in the supply chain management, ensuring that the raw materials used come from sustainable source and environmental standards. Nestlé use blockchain to track the supply chain of coffee to ensure that raw materials are harvested from the farm sustainable.
4. The field of applied industrial green
4.1. Industrial production
Optimization of production process technology, energy-saving: The business use advanced technology to optimize the production process, minimize energy consumption, maximize performance. Solutions such as manufacturing systems automation (automation), Internet of Things (IoT), energy management, smart helps to save considerable resources.
Use recycled materials and reducing waste: green Industry encourage the use of recycled materials or raw materials can recreate in production, helping to reduce pressure on natural resources, the amount of waste into the environment.
For example:
- Papermaking using pulp recycling, saving water, reducing the amount of solid waste.
- The business of producing plastic use recycled plastic (PCR – Post-Consumer Recycled) to create products such as plastic bottles or home appliances.
Benefits for business:
- Reduce production costs long-term: Use recycled materials or renewable energy to help business save cost and reduce dependence on raw materials.
- Meets international standards: Many countries require that products have to reach the green standard such as ISO 14001 or FSC certified, create competitive advantage for business in the global market.
- Increase brand value: The business green production often are consumers, partners appreciate about social responsibility, the environment.
4.2. The field of building design
Use the materials for sustainable construction: In the construction sector and real estate industry, blue encourage the use of sustainable materials such as brick, recycled wood, paint does not contain organic compounds volatile (VOC). These materials not only reduce environmental impact but also improve the air quality, health for users.
In Vietnam, the use of unbaked brick replacement, brick traditional helped reduce 30% of CO2 emissions in the production process.
Green building design systems with energy-saving: The green buildings are designed to take maximum advantage of natural light, natural ventilation, using the system or solar system, HVAC (heating, ventilation and air conditioning) energy-saving.
Benefits for business:
- Increase the value of real estate: The real estate project blue often have higher value and attract more customers thanks to the environmentally friendly, save operation cost.
- Save energy costs and water: green buildings are design, optimization, energy efficiency, help reduce your bills significantly.
- Meet the trends living green of customers: buyers increasingly preferred real estate project has eco-friendly design environment, ensuring health for their families.
4.3. High-tech agriculture
Applying IoT technology and AI to reduce water consumption and fertilizer
High-tech agriculture in the model green industry focused on the use of advanced technologies such as IoT (Internet of Things) and AI (Artificial Intelligence) to optimize the cultivation process, saving resources, reducing waste.
- IoT in agriculture: System sensor, IoT is used to monitor soil moisture, temperature, light condition, crops in real time. This helps farmers only watering or fertilizing when really needed, saving resources and cost.
- AI in agriculture: artificial intelligence is used to analyze the data farming, predict harvest time, optimize the use of fertilizers.
Organic production and reduce emissions from agriculture
High-tech agriculture was combined with the organic production to remove harmful chemicals, reduce emissions, such as methane (CH4), nitrous oxide (N2O) from the process of cultivation, animal husbandry. Many organic farms in Vietnam has applied models livestock, do not use industrial food system, biogas to take advantage emissions from fertilizer making renewable energy.
Advantages of organic production to help reduce impact on the environment. Provide high quality products, safe for health consumers.
Benefits for business:
- Reduce production costs long-term: Apply-saving technology resources help reduce the cost of water and fertilizer.
- Meet consumer demand for green: organic products, high-tech agriculture attract consumers interested in health, environment.
- Increase productivity and product quality: high-tech help to improve productivity without expanding the cultivated area.
4.5. Energy sector
Increase production of renewable energy such as solar, wind and hydropower
The energy sector in the green industry focused on the development and application of renewable energy sources to replace fossil energy, reduce greenhouse gas emissions.
- Solar system solar battery is mounted on the roof or at the farm energy that help convert sunlight into clean electricity. The solar power plants in Ninh Thuan (Vietnam) has a capacity of 450 MW, providing clean energy for millions of households each year.
- Wind energy: The wind turbine is installed at the area with conditions, strong wind, such as coastal areas or hills, helps produce energy sustainability. Project wind farm in bac Lieu has contributed up to 320,000 tonnes of CO2 every year.
- Hydroelectric energy: hydropower take advantage of water from large rivers to produce electricity, plays an important role in providing renewable energy at scale.
Development, storage systems, energy efficiency to reduce waste
A big challenge of renewable energy is not stable (such as solar only operation day). Green industry solved this problem through the system, energy storage, advanced, such as:
- Battery energy storage: lithium-ion scale is used to store power from renewable sources, guaranteed to provide continuous power when needed.
- Storage technology, compressed air: Compressed air into the storage tank in time, renewable energy excess and release gas to create energy when needed.
Benefits for business:
- Reduce energy costs: Use of renewable energy to help businesses avoid the cost of fossil fuels is increasing.
- Meets international standards: Many countries require businesses to use a part of renewable energy to be licensed to operate or export products.
- Enhancing competitiveness: Use of renewable energy commitment with sustainable development, attract partners and international investors.
5. Benefits of green industry for business
5.1. Reduce long term costs
Save energy and raw materials: The transition to using renewable energy, such as solar or wind, to help businesses significantly reduce energy costs every year. Instead of depending on fossil fuel price fluctuations, renewable energy, bring stability, economic efficiency.
Reduced cost of waste management: production process get rid of the green industry focused on the reuse and recycling of waste, help businesses reduce the cost of handling industrial waste.
5.2. Enhance brand reputation
Business commitment with the sustainable value that will attract the trust of customers, partners, investors. Practical example, Unilever has converted 100% of packaging products in South East Asia to recycled materials, build brand image, environmentally friendly, increase revenue from customer preferred products, green.
The large investment funds in the world, such as BlackRock and Temasek, usually priority pour capital into the business meet the criteria for ESG. Apply the green industry to help businesses increase the possibility of getting a long term investment, build trust from the customers, increase the rate of loyalty, expand cooperation opportunities with partners that have the same orientation sustainable.
5.3. Meet regulations and international standards
Compliance with environmental regulations: Many countries have enacted strict rules about protect the environment, reduce greenhouse gas emissions.Businesses avoid fines due to violation of regulations, at the same time increase the ability to operate in international markets. The European union (EU) requires all imported products must meet the standard on carbon emission reduction, use of renewable energy in production.
Take advantage of preferential policies: The government of many countries, including Vietnam, have deployed the package of financial aid, tax exemptions or subsidies to encourage businesses transition to a green industry. Businesses in Vietnam to participate in the development of renewable energy is reduced by 30% corporate tax in 5 years of operation.
5.4. Create cooperation opportunities and expanding markets
Expand export opportunities to the market demanding: The international market such as EU, Japan, America put out very high standards on environment and sustainable development. The meet the green standard to help businesses reach more easily with this potential market.
Attract partners and investment funds sustainable projects international cooperation or fund sustainable development. Increase competitiveness on international markets. Expand the scale of operation and to enhance the business.
6. Challenges when deploying application in business
6.1. The cost of the initial investment is high
Requires large capital to convert infrastructure: The deployment of green industry requires businesses to invest in new systems such as production line, clean, renewable energy technology, energy saving. The cost for this device is often much higher than traditional solutions.
The cost of research and development (R&D): product development and manufacturing processes, green requires huge investment in R&D to test new technology, optimize production and minimize waste.
Solution:
- Search the support program financial: Business can take advantage of a sustainable development fund or support package from the government to reduce the burden of the original cost.
- Applicable model investment step by step: convert each part, process or application test at a workshop before deployment on the entire scale.
6.2. Accessibility technology
Deficiency of advanced technology: Many businesses in emerging markets do not have the ability to approach the modern technology due to the high cost or lack of supplier reliable.
Ask staff have highly specialized: The operation and maintenance of the system green industry requires personnel with specialized knowledge, technical skills, while this resource at medium business, small, often deficiency.
Solution:
- Cooperation with the technology organization:
Organizations such as JICA, UNDP or funds to support green often provide technology with cost incentives or allows businesses to use technology in the form of rent. - Internal training:
Invest in training program personnel, in collaboration with educational institutions or technology center to enhance the professional level for the current team is.
6.3. Model change operation
Affect the productivity of short-term: The transition from the process of traditional manufacturing to green industry can cause temporary interruption, affecting productivity and production schedule.
Difficulty in changing habits management: production Management, green business requirements have to rebuild process, waste management, and reporting emissions, this requires time, commitment from the leadership.
Solution:
- Planned switch-specific: construct a transition to clear with the stages and specific objectives, from which minimize interruptions in production.
- Deployment step by step: Apply green industry in each department or process small before expanding across the enterprise, helps to reduce risks and optimize the conversion process.
6.4. Infrastructure and policy support is still limited
System recycling and waste disposal are not synchronized: Many regions, especially in developing countries, there is no system for recycling, waste disposal, sync, causing the business difficulties in the application of model production, circulation. In Vietnam, only 33% of plastic waste is recycled, the rest is discharged into the environment or the treatment is not effective.
Preferential policies are not strong enough: A number of countries have not implemented the full range of preferential policies such as tax relief or financial assistance to encourage business transition to the green industry.
Solution:
- Policy advocacy: Business can partner with the association industry to lobby government issued policies to support more powerful, such as tax exemptions, support loans low interest rates.
- Cooperation with international partners: international organizations such as UNDP, Green Climate Fund, often financial support and advice to help businesses overcome barriers to infrastructure.
7. Solutions to promote green industry for business
7.1. Increased investment in research and development (R&D)
- Developed technology produced clear: investing in research and development help innovative businesses technology, clean production, minimize negative impact to the environment. R&D also supports process improvement is to use raw materials more efficiently, save energy, reduce waste.
- Strengthen the application of technology to save energy: R&D allows businesses to find out methods to optimize energy performance, such as improving HVAC systems or develop new insulation.
7.2. Application of digital technology and transformation of
- Use AI to optimize production processes: artificial intelligence (AI), data analysis, production, anticipated demand for raw materials, optimizing the supply chain, which helps reduce waste and increase performance.
- IoT (Internet of Things) helps energy monitoring: sensors, IoT devices are installed at the factory to track energy consumption in real-time device detection operation less effective to adjust in a timely manner.
- Convert numbers in supply chain management: Blockchain to help track the source of the original material, durable, enhance the transparency in the entire supply chain, from suppliers to the final consumer.
7.3. Cooperation with international organizations and fund support
- Join the green initiative global initiatives such as the Paris Agreement or the program JCM (Joint Crediting Mechanism) provides financial support and technology for business applicable model green industry.
- Receives funding from the fund for sustainable development: Green Climate Fund or Funds to Support sustainable development of the united Nations provide funding, concessional loans to support business to implement the project of green.
7.4. Training and awareness internal
Create training program: Businesses need to invest in staff training so they understand the importance and benefits of the green industry, from which build the internal culture aligned with the goals of sustainability.
Training content:
- Use technology to save energy.
- Manage and reduce waste in production.
- Enhanced personal responsibility in environmental protection.
Internal communications: Create a media campaign to encourage employees to participate in initiatives such as energy savings or reduced use of resources.
7.5. Construction development strategy for sustainable long-term
- Set a goal to reduce emissions: Businesses should set out specific goals, such as reducing 30% of CO2 emissions in the last 5 years, or switch completely to renewable energy within 10 years.
- Integrating sustainability into business strategy: sustainable development is a core objective in the operation and direction of business.
Industrial green not merely is a new production model, which is also the key to business sustainability in the long term. From reducing costs, improving operational efficiency to the construction of prestigious brands, industrial green bring practical value to both the business and the community. Although the transition can meet more challenges, but with the appropriate solutions, committed to strong business can completely successful.
