Vinamilk Pathways to Dairy Net Zero Action Program

12.5 billion VND

contributed to 1 Million Trees for Vietnam fund

17,560 tons

greenhouse gases have been neutralised

100%

of factories and farms have conducted greenhouse gas inventories

87%

clean energy substitution rate

85%

of livestock wastewater being treated to standard

Context and foundation

After more than 10,000 years of development, human civilisation has become so advanced that it now threatens the Earth's stability and mankind’s survival. The current overexploitation of fossil fuels, deforestation, and environmental pollution have made signs of climate change—such as global warming, rising sea levels, droughts, floods, and storms—intensified. The negative impacts of extreme weather events on socio-economic life have become far more complex than in previous decades.

Globally, Vietnam is the sixth most affected country by climate change. According to the World Bank (WB) in its Country Climate and Development Report for Vietnam released on July 14, 2022, Vietnam lost approximately $10 billion in 2020 (equivalent to 3.2% of GDP) due to climate impacts. The total economic cost caused by climate change could reach $523 billion by 2050. Meanwhile, Vietnam has quadrupled its per capita greenhouse gas emissions this century and is maintaining one of the fastest growth rates in the world.

Vinamilk is the first Vietnamese dairy enterprise to join the global dairy industry initiative "Pathways to Dairy Net Zero"—committing with the Vietnamese Government to achieve the goal of Net Zero emissions by 2050.

Initiatives and innovations

The Vinamilk Pathways to Dairy Net Zero action program is implemented based on three keywords: Cut – Transform – Absorb, corresponding to the three processes of heading toward Net Zero.

Cut

At Vinamilk, the implementation of a "nothing is discarded" circular economy model has been strongly promoted to contribute to "cutting" emissions. The circular economy is a cycle where the output of one process serves as the input for another, thus reducing resource extraction, waste treatment costs, and environmental pollution.

Transform

Despite some swift actions, Vinamilk recognised that the journey toward Net Zero is long-term. Many major strategies require change and investment, particularly regarding processes, governance, and people.

The enterprise began with a consistent orientation toward sustainable development, from environmental laws and regulations compliance to proactive sustainability report practices and advanced, eco-friendly technologies transitions, such as green and renewable energy.

Absorb

Once emissions are cut and transformed to the maximum extent, "absorption" is the vital step toward the balance goal of Net Zero. Many businesses have made efforts to plant trees to absorb and offset the amount of CO2 emitted during production. The greenery coverage at Vinamilk Green Farms is maintained at a rate of over 70%. Trees are planted around the facilities to create biological belts, protect the ecosystem, and limit impacts from the external environment.

Diagram showing Vinamilk’s biogas circular system that turns cow waste into energy and fertiliser for the farm.

Vinamilk applies a “nothing is discarded” circular economy at its dairy farms, where cow manure is converted in biogas systems into methane for heating water and fertiliser for pasture, helping to cut emissions at source, transform production through cleaner technologies, and absorb CO2 by enriching soil and supporting the over 70% green coverage at Vinamilk Green Farms on the journey toward Net Zero.

Objective and vision

Mai Kieu Lien, General Director at Vinamilk, shares in a VTV Money interview Vinamilk’s commitment to working with the business community and government on the Net Zero journey for a greener, more sustainable future.

Objective

As a leader in the dairy industry, Vinamilk understands that sustainable development is the core of improving the quality of life and health of Vietnamese people while preserving precious resources for future generations. Furthermore, realising that every production activity puts its toll on the environment and community, Vinamilk always strives to find solutions to minimise negative environmental impacts and seeks ways to use resources and energy efficiently.

Through the Vinamilk Pathways to Dairy Net Zero action program, Vinamilk affirms its pioneering role in managing and reducing its carbon footprint in production and business activities, accompanying the Government to fulfil the Net Zero 2050 commitment and the "National Strategy on Climate Change for the period to 2050."

Committing to Net Zero and providing an action program and roadmap like Vinamilk Pathways to Dairy Net Zero shows the company's thorough preparation for balancing environmental protection with economic development and comprehensive growth.

Vision

By practising Sustainable Development toward Net Zero, Vinamilk contributes to significant changes in developing a low-carbon economy: using green energy, renewable energy, and applying circular economy principles. This universal and comprehensive transition process not only avoids the heavy consequences of climate change and contributes to protecting the diversity of natural resources but also brings economic opportunities, such as reducing operating costs, expanding investment attraction, maintaining sustainable business operations, and enhancing corporate reputation and brand.

Moreover, society is putting a high demand for environmental solutions. Consumers may even turn away from or "restrict" the use of products from businesses that cause pollution, waste resources, or have negative impacts on the environment and community.

Therefore, sustainable development toward Net Zero is an inevitable trend. Vinamilk sets sustainable development at a strategic and governance level, committing to responsible business and implementing sustainable development, in line with the world direction and Vietnam in particular.

Implementation Process - Scope - Budget

Implementation Process - Scope

On May 26, 2023, in Nghe An, Vinamilk officially announced its Net Zero 2050 roadmap with the "Vinamilk Pathway to Dairy Net Zero 2050" action program.

Accordingly, the Net Zero 2050 roadmap outlined by Vinamilk is to cut greenhouse gas emissions by 15% by 2027, cut and neutralize 55% of emissions by 2035, and reach the Net Zero goal by 2050.

To cut greenhouse gas emissions and move toward Net Zero in the dairy industry, Vinamilk has invested comprehensively in technological solutions, green energy conversion, and circular economy applications. The program is implemented at all Vinamilk farms and factories.

Specifically, when heading toward Net Zero, greenhouse gas emission management activities to reduce the carbon footprint have been actively deployed. For instance, 13 farms and 10 Vinamilk factories have completed solar energy installations, while promoting green energies like biomass at factories and biogas at farms.

Vinamilk has also invested heavily in building dairy farm models like Green Farm—farms with 100% meeting Global GAP standards— moving towards sustainable agriculture. Most farms also dedicate 50-70% of their area to greenery and develop ecological climate-control lakes.

In addition, tree planting for carbon neutralisation has been actively pushed. For example, the "Vinamilk Net Zero Forest" being implemented is a practical project that helps form green areas to absorb CO2 and inspires the community to protect nature and encourage tree planting.

Budget

Announced and implemented since May 2023, the “Vinamilk Pathways to Dairy Net Zero” action program has showcased the business's long-term sustainable development desire, protected the living environment and brought benefits to consumers.

Vinamilk has built an action program based on four key areas: sustainable agriculture, green production, eco-friendly logistics, and sustainable consumption. With this strategy, the company’s internal teams have been proactively transforming their operational methods, increasing investment in equipment, focusing on human resource training, and actively pursuing digital and green transformation.

Vinamilk has also completed greenhouse gas inventory and energy use reports. The company is currently accelerating the Net Zero process with its first factories and farms achieving Carbon Neutrality (Vinamilk Nghe An Dairy Factory and Vinamilk Nghe An Dairy Farm).

Currently, Vinamilk has completed solar energy installations at its headquarters and its system of 13 farms and 10 factories, with an installed capacity of 72.55 MWp, contributing to the reduction of nearly 85,000 tons of CO2, equivalent to planting 4.6 million trees.

The proportion of green energy in Vinamilk’s production activities has reached 87% of the total energy used. Vinamilk is also a leader in sustainable development, effectively managing greenhouse gas emissions and applying circular economy principles.

In the Vinamilk Net Zero roadmap, the “Vinamilk Net Zero Forest” program is also a significant component. The program is coordinated with the Ministry of Natural Resources and Environment over five years from 2023 to 2027, with a total budget of 15 billion VND.

Achievements

The program has achieved remarkable results in sustainable development and environmental protection. A total of 12.5 billion VND has contributed to the 1 Million Trees Fund, promoting restoration activities and expanding green areas. Meanwhile, 17,560 tons of greenhouse gases have been neutralised, reflecting efforts to mitigate climate change impacts. Notably, 100% of factories and farms have conducted greenhouse gas inventories, showing compliance and transparency in environmental management. Additionally, the clean energy substitution rate has reached 87%, with 85% of livestock wastewater being treated to standard. These figures clearly show the program's effectiveness in integrating growth with environmental responsibility.

Potential for model replication

The "Net Zero" goal was one of the primary discussion topics at the 26th UN Climate Change Conference (COP26) in 2021. To date, nearly 140 countries, representing 88% of total global emissions, have committed to or are heading toward Net Zero. Among them, the Vietnamese Government committed to reaching Net Zero by 2050.

Carbon neutralization programs are being encouraged by the Government for business participation, with Vinamilk as a pioneer. Vinamilk’s official announcement of the Net Zero 2050 roadmap has shown the company’s commitment to the community and the people of Vietnam.

Vinamilk is reducing carbon emissions from production, livestock, and management activities internally and across the supply chain. It also offsets unavoidable emissions through tree-planting activities and the creation of “Vinamilk Net Zero Forests.” The model is applied across all Vinamilk farms and factories and can be replicated in other livestock and food production units.

With its sustainable development model, Vinamilk is achieving initial efficiency. Activities within the Vinamilk Net Zero project are highly regarded by domestic and international professional organisations, a typical example that can be replicated for other businesses to learn from. The project is devoted to conveying strong positive messages to the business community, joining hands with the Government on the Net Zero journey.