Products what is green? Examples of green products in Vietnam

The world is facing serious problems such as climate change, environmental pollution, depletion of natural resources. According to the report of the united Nations year 2022, the amount of greenhouse gas emissions globally has reached its highest level in history in which production and consumption is the main cause of 60% of emissions.

In that context, green product is a solution strategy to solve the environmental problems, at the same time bring sustainable value to society and business. Not only minimize the negative impact to the environment but also contribute to the improvement of natural ecosystems, creating new business opportunities in the green economy.

So, green product, what is it and why is it so important for business today? Let's Lac Viet Computing learn more in this article.

1. Product overview what is green?

1.1. Definition

Green product are the products designed, produced and used with the goal to minimize the negative impact on the environment throughout the life cycle of them. This includes the use of renewable raw materials or environment-friendly, apply to the production process, reduce emissions, increase the ability to re-use or recycling.

The business world is moving yourself:

• Apple: Committed to manufacturing all products from 100% recycled materials by 2030.
• Unilever: Set a goal to lose 50% of plastic materials in product packaging by 2025.

In the context of climate change and pressure environmental protection increasingly large, green products not only meet the demand for sustainable, but also as tool for enterprises to create competitive advantage, at the same time contribute to building a society friendly to the environment.

1.2. The characteristics of green products

Use of renewable raw materials or environment-friendly:

• Renewable raw materials: green products often use raw materials such as organic cotton, recycled plastic, bamboo, or wood are FSC certified.
• Environment-friendly: this material does not harm the ecosystem in the process of extraction and production. For example, packaging biodegradable, made from corn starch instead of traditional plastic.

Production processes, energy saving and emission reduction:

• Green products are often produced using technology to save energy, reduce CO2 emissions, other pollutants.
• For example: The factory green using solar or wind energy in the production process.

Have the ability to re-use or recycling:

• An important characteristic of green products is life cycle sustainability. This product is typically designed to be re-used multiple times or recycled into new raw material after expiry date.
• For example: The water bottle is made from PET plastic recycling or canvas bag can be used multiple times.

Meet the environmental standard international:

• FSC certified: For products made from wood, or paper.
• Certified EU Ecolabel: Ensure products friendly with environment.
• Certified organic (Organic): For food, cosmetics.

1.3. The difference between green products and conventional products

2. The product type popular green

2.1. Product recycling

Recycled products are manufactured from raw materials of the products used, such as paper, plastic, metal, or fabric. The recycling process includes collection, processing and transformation of the old material into the new material to create products that can be re-used. This is an effective method to help minimize the amount of garbage, saving natural resources and reducing environmental pollution.

Common applications:

• Recycled paper: Used in the production of office stationery, packaging, or paper box environment-friendly.
• Plastic recycling: Make the water bottles, plastic bags, re-use, or building materials.
• Fabric recycling: Manufacture of clothing, bags, or fashion accessories from old fabric.
• Metal recycling: Used in the production of electronic components, cars, appliances.

Benefits for business:

• Minimize waste: recycling helps to significantly reduce the amount of waste in landfills, reduce the burden on the ecosystem and the urban environment.
• Save resources: Use recycled materials to help businesses reduce the need to exploit natural resources such as wood, oil, or metal ores.
• Optimized production costs: Raw materials recycling often have lower cost of raw materials, help enterprises to reduce production costs and increase competitiveness.
• Enhance brand value: The recycled products often attract the attention of consumers interested in sustainability, and help businesses demonstrate social responsibility, the environment.

Practical example: Many famous brands such as Adidas has used recycled plastic from the ocean to produce shoes, while the company produced paper such as Double A deployment program of recycled paper to serve the needs of the office.

2.2. Organic products

Organic products are produced from natural raw materials, without the use of harmful chemicals or synthetic compounds such as pesticides, chemical fertilizers, or artificial preservatives. These products are guaranteed safe for consumers ' health and reduce the negative impact to the environment.

Common applications:

• Organic food: Vegetables, meat, egg products, contains no chemicals and to ensure safety for consumers.
• Natural cosmetics: skin care products, hair and body contains no harmful chemicals, made from natural extracts such as coconut oil, aloe vera or shea butter.
• Household appliances: cleaners, organic products, cosmetics, child care, such as paper towels or diapers made from natural materials.

Benefits for business:

• To meet consumer demand premium: more and more consumers are willing to pay more for organic products for health, environment.
• Increase brand value: The organic products are often seen as symbols of quality, social responsibility, corporate can improve their position in the market.
• Meets international standards: organic products certified as USDA Organic or EU Organic helps businesses easily accessible to the international market.
• Protecting public health: Do not use toxic chemicals, organic products and contribute to reducing the risk of diseases related to food and chemicals.

Practical example: The brand as Whole Foods in the U.s. or Organica in Vietnam has been successful in providing organic food standards, to meet the increasing demand of consumers about product safety and sustainable.

2.3. Products energy saving

Products saving energy is designed to minimize power consumption without compromising performance. This is the product to use advanced technology to optimize energy, minimize environmental impact and cost savings to use for users.

Common applications:

• LED lighting equipment: consume less power to 75% compared to incandescent bulbs traditional at the same time have a life expectancy of 5-10 times higher than.
• Appliances high performance: Air conditioning, washing machine, refrigerator labeled energy standard 5 stars according to regulations of many countries, ensuring power saving significantly.
• Industrial equipment: The electric motor, high performance, management system, smart energy helps optimize operation and reduce energy consumption in production.

Benefits for business:

• Reduce operating costs: product Use energy savings to help businesses significantly reduce cost of monthly electricity bills. For example, a business switching to LED lighting system in the machine can save tens of millions per month.
• Reduce greenhouse gas emissions: energy-saving synonymous with the reduction of CO2 emissions, contributing to environmental protection.
• Enhance production efficiency: The equipment often energy-saving, stable operation, help businesses increase productivity and reduce maintenance costs.
• Meet legal regulations: Many countries apply the standard to save energy required, the use of this product helps businesses avoid legal risks.

Practical example: big companies such as Panasonic, Philips, pioneer equipment manufacturers, energy saving such as LED bulb,air conditioner inverter, attracting the attention of businesses and individuals towards sustainable consumption.

2.4. Products friendly with environment

Products friendly with environment is produced from materials that have the ability to bio-degradable, no pollution in the process of use, do not leave a negative impact long after disposal.

Common applications:

• Packaging biodegradable: made from materials such as corn starch, bamboo, or cane, types of packaging, this can decompose without leaving the plastic waste in the environment.
• Furniture re-use: fabric Bags, straws, stainless steel, glass cup product is replace the disposable to help reduce the amount of plastic waste.
• Green building materials: Brick, paint contains no VOC (organic compound-volatile), or insulation eco.

Benefits for business:

• Reduce environmental pollution: Use products friendly with environment, help businesses reduce the amount of plastic waste and toxic substances arising in the process of production and use.
• Attract customers: more and more consumers preferred the products friendly with environment, creating opportunities for business to expand the market and increase revenue.
• Meets international standards: Many international markets such as the EU, Japan requires imported products to meet the criteria of environmentally friendly, contains no plastic used once.
• Strengthening corporate social responsibility: Business application-friendly products, environment demonstrated commitment to sustainable development, from which reinforces the reputation and brand in the market.

Practical example: Unilever has replaced the entire plastic packaging of some products, packaging biodegradable, while IKEA use recycled wood material, environmentally friendly in the production of furniture.

3. Benefits of green products for business

3.1. Meet the needs of the modern consumer

Today, consumers are not only looking for quality products but also look forward to them environmentally friendly. A study by Nielsen in 2022 shows that 73% of global consumers are willing to pay more for products with a sustainable element, especially in the younger generation, Millennials and Gen Z.

Business application development strategy, green products will be easily accessible and meet the needs of this audience, thereby improving revenue and expand market share.

In fact, products like canvas bag, reusable or organic cosmetics are becoming a trend in the retail industry.

3.2. Enhance brand reputation

• Demonstrate social responsibility and building trust: When business invest in green products, they not only improve the brand image, but also to build solid trust from customers, partners and community. Green products become the symbol for commitment on sustainable development to protect the environment.
• Increase opportunities for cooperation and investment: The meet the standards of ESG (Environmental, Social, Governance) to help businesses build credibility, attract attention from large investment funds, the units are usually preferred business strategy, green and sustainable.

For example: Patagonia, brand famous fashion with a commitment to sustainability, has attracted a large amount of loyal customers, business partners big thanks to strategic green products.

3.3. Increased access to international markets

Green standard is a key market opening: Many large markets such as Europe, North America, Japan has applied green standard strictly. Products must meet the criteria as:

• FSC certified (Forest Stewardship Council): for products made from wood or paper is sustainable.
• Certified EU Ecolabel: Ensure the products meet the criterion of minimizing environmental impact.
• Certified organic (Organic): Applicable to food, cosmetics, agricultural products sustainable.

Competitive advantage superior: achieving this certification helps business to expand the international market, increasing the ability to export, affirming its position on the global market.

3.4. Reduce operating costs and optimize resources

Green production help save resources: adopt manufacturing process of green help businesses save energy, optimize the use of raw materials. The factory applied model production and circulation can reduce up to 30% of the cost of raw materials, at the same time re-use of by-products in the production process.

Reduce energy costs long term:

• For example, Use of solar electric systems in the factory to help reduce the cost of electricity up to 40%-60% per year.
• Optimized operation: The green products are often produced using modern technology, which helps reduce maintenance costs, improve productivity.

3.5. Meet legal regulations

Avoid legal risks from environmental regulations: a growing number of countries enacted policies to restrict the consumption and production of products not friendly to the environment. The use of green products to help businesses comply with legal regulations in an effective way.

For example, businesses in the European union (EU) must comply with regulations limit use of disposable plastic, the transition to packaging biodegradable helped many businesses to avoid huge penalty.

Advantage of support policy: Many governments and international organizations have deployed the funds support and financial incentives to encourage business development, green product. This includes tax exemptions, support loans low interest rates, packages, direct funding for sustainability projects.

4. The challenge when developing green products

4.1. The cost of the initial investment is high

• Difficulties in research and development (R&D) require large investments in technology, raw materials, production process, advanced. For the small and medium enterprises, this fee can be big obstacles. For example, to create packaging biodegradable from corn starch, businesses need to invest in new production line, research, recipe fit, increases the initial cost significantly.
• Product life cycle longer, but cost recovery lower: Although green products have the ability to bring economic efficiency long-term, but the initial investment is often higher than conventional products, requires the business to have the financial ability to payback.

4.2. The ability to access source material green

• Limited supply: recycled materials or environment-friendly, are often not available in many markets, particularly in the developing countries. This makes the business difficulties in maintaining stable production.For example, raw materials such as bamboo, renewable or bio-plastic can be scarce in some areas, leading to increased transportation costs high.
• Price high: Due to limited supply and increased demand, high raw material prices green is often higher than with traditional material. Affect the cost of production, the final sale price of the product.
• Dependence on imports: Many businesses to import raw material from abroad, not only increases the cost but also pose a risk of supply when there are disruptions in the global supply chain.

4.3. Lack of infrastructure support

• Recycling systems are not synchronized: Many countries, especially developing countries, have not yet been established recycling systems and waste management green sync. Make the collection, processing, re-use of recycled materials in trouble. For example, waste plastic in many southeast Asian countries has not yet been sorting and effective recycling, reducing the chance of re-used materials.
• Processing technology backward: The factory, recycled materials, green in some places still use the old technology, performance, low energy-consuming, which leads to higher costs.
• Policy support is still limited: some countries not yet have strong policies to encourage business development, green infrastructure, for example, tax incentives or financial aid package.

4.4. Compete on price with conventional products

• Price of green products is higher due to the cost of investing in raw materials, technology, higher production. This makes them difficult to compete with the conventional products of capital are cheaper.
• The perception of consumers are: Though there is a large segment of consumers willing to pay more for green products, but at the market price-sensitive, such as southeast Asia, there are still many people priority products have lower prices, regardless of the impact on the environment.
• The pressure from competitors tradition: The conventional products with large-scale production and lower costs, creating competitive pressure harshly, causing enterprises to manufacture green products to consider strategy, the reasonable price to reach consumers.

5. Solutions developed green products for business

5.1. Investment in research and development (R&D)

• Search for new raw material and production process efficiency: investing in R&D to help businesses find the source of raw materials and sustainable process development, green production, optimize cost,mitigate environmental impact. Businesses can research the type of bio-plastic made from corn starch or sugar cane to replace the traditional plastic, at the same time developing the manufacturing process less energy consuming than.
• Use advanced technology in research: technologies such as simulation, AI, 3D printing, blockchain can support enterprise testing faster and more transparency in product development. For example, use AI to predict the feasibility of new materials or in 3D to create a sample product, raw material saving.
• Integrated development strategy for green products in the long-term vision: The business needs to identify green product development is a short term strategy and is a core element in the process of sustainable growth.

5.2. Cooperation with organizations and partner expertise

• To strengthen cooperation with raw material suppliers, green: working with partners in reputable supply of raw materials renewable, or environment-friendly, to ensure supply stability and quality. The business manufacturing packaging can cooperate with company specializing in manufacturing recycled paper or biodegradable plastic.
• Join organizations and initiatives green international organizations such as FSC, Green Building Council, the fund supports sustainable development provides financial solutions, engineering to business development, green product efficiency. For example, to participate in initiatives JCM (Joint Crediting Mechanism) to get financial support from Japan in project green production in Vietnam.
• Leveraging international certification: Enterprise need to partner with an organization-level international certification such as the EU Ecolabel or the USDA Organic to enhance brand value, expand the international market.

5.3. Leveraging digital technology and transformation of

• IoT application in order to optimize production: the Internet of Things (IoT) to help monitor and manage the production process, thereby reducing material waste and optimized use of energy. For example, installation of sensors, IoT in the factory to measure energy consumption in real time, and automatically adjusts to save.
• Integrated AI in production management: artificial intelligence (AI) helps to analyze production data to predict the demand for raw materials, optimize the performance of the production line. For example, use AI to determine how to reduce waste in the production process, packaging, recycling, thereby reducing costs, increasing efficiency.
• Digitized supply chain management: Using blockchain or management software to ensure transparency in the source of raw materials and monitoring product life cycle. For example, blockchain can verify the source of sustainable raw materials such as recycled wood, make sure to meet the international standards.

5.4. Build awareness and internal communications

• Staff training: invest in training programs to raise awareness for employees at every level. Employees understand the value and benefits of green products will be easy to agree and implement sustainability initiatives.
• Awareness of customers: Enterprises need to build a marketing campaign to reach customers understand the value of green products and encourage them to use the priority.
• Internal communication powerful: Create corporate culture green through initiatives such as minimizing the use of paper, encouraging the use of renewable energy in the office, or awarded for parts made good their sustainability goals.

Green product not only is a solution for protecting the environment but also the opportunity for businesses to affirm sustainable value, enhance competitive advantage, market access potential. In a world that is strong to navigate to the sustainable development, the investment in green products no longer is the option that has become indispensable requirement. Take action today for your business, lead the trend, contributing to building a greener future, more sustainable for generations to come.