Innovation

In the environmental pillar, Heineken Vietnam ambitiously sets an objective to attain 100% Renewable Energy in production by 2025 - five years ahead of the global target. To accomplish this purpose, Heineken Vietnam is accelerating its shift to renewable energy. In 2022, the Quang Nam Brewery (QBN) was the final plant to convert to thermal biomass energy, marking 100 percent of Heineken factories in Vietnam utilizing renewable thermal energy.

Energy consumption in beer production falls into two categories: (1) heat energy for the brewing process, and (2) electricity for fermentation, cooling, and product packaging. The innovation focuses on heat energy by using renewable energy from agricultural byproducts (e.g., husks, sawdust, wood chips, and corn cobs). This transition at QBN significantly minimizes carbon emissions compared to traditional heat generation methods like diesel. To further reiterate, Hoang, Heineken Vietnam’s Sustainability Manager, points out that “As Vietnam annually produces millions of tons of agricultural byproducts as biomass, utilizing this source helps Heineken Vietnam achieve renewable energy development while also providing a solution to the issue of carbon waste.”

The implementation of this transition is an outcome of the concerted efforts of Heineken Vietnam's sustainability team, serving as the orchestrators of a strategic plan developed through collaboration among internal and external departments. The supply chain team is responsible for the technical execution and continuous monitoring of the operational processes. Simultaneously, the procurement team plays a pivotal role as the primary liaison between suppliers of biomass materials and the production plants.

The SDGs Heineken Vietnam addresses are 7. Affordable and clean energy; 8. Decent work and economic growth; 12. Responsible consumption and production; and 13. Climate Action.

Inspiration

The production of beer at Heineken Vietnam requires a substantial energy demand, resulting in elevated emissions. Recognizing the gravity of these concerns, Hoang has proactively worked closely with different departments to manage and execute the renewable thermal energy transformation project. Despite challenges including a lack of market availability and established guidelines to follow, the team's vision materialized successfully, with biomass energy being adopted across six Heineken brewing facilities in Vietnam. Hoang shares that the key solution is to influence stakeholders to collectively work towards a shared sustainability objective, positioning Heineken Vietnam as a trailblazer in sustainable development. Hoang aptly summarized his perspective, stating that "sustainability is the outcome of collective actions, through which we can jointly contribute to a more environmentally friendly future."

Despite the achievement of this transition, Hoang recognizes persistent obstacles, specifically concerning the consistent quality and traceability of raw materials. He continues to address these issues, acknowledging that sustainability is a continuous endeavor requiring the application of comprehensive insights to tackle evolving challenges. This dedication is exemplified by his guiding principle: "A little bit Greener every day."

Overall impact

Vietnam is recognized as one of the countries rich in potential for biomass reserves. Therefore, this transition not only contributes to reducing carbon emissions but also develops Vietnam’s economic prosperity through the expansion of the biomass energy industry. To emphasize the overall impact, Hoang states that “Heineken deliberately opts not to employ power purchase agreements to secure advantageous prices for the company. Instead, it adopts an approach that prioritizes supporting the development of the biomass industry by procuring biomass at market-based prices”.

Moreover, the adoption of thermal biomass energy is fostering a culture of increased well-being and success for everyone involved. Employees, customers, and community members all stand to benefit from this transition. In the first instance, employees are cognizant of their role in contributing to the fulfillment of a cleaner and more sustainable future, knowing that their work serves a greater purpose. This can be seen in the effort of Heineken to engage and develop its employees through training, learning activities, sharing, and re-applying practices.. Secondly, customers are aware that they are supporting a company committed to environmental responsibility. As stated in the Heineken Sustainability Report 2022, 63% of respondents surveyed believe Heineken has a positive impact on the environment, and 65% of respondents believe Heineken cares about reducing its carbon footprint. Finally, community members are empowered through the company's initiatives aimed at supporting local people by creating jobs and increasing income.

Business benefit

The journey towards renewable energy transition has been rewarding for Heineken Vietnam's business in several ways. First and foremost, the reduction in operational costs is substantial. By shifting to thermal biomass energy, QBN has significantly lowered its energy expenses, reducing dependence on diesel fuel and price volatility. This not only contributes to the brewery's financial stability but also ensures that it remains competitive in an ever-changing market.

Additionally, the increased renewable energy utilization rate has enhanced the company's reputation as a responsible and sustainable business. This has a positive impact on brand image and customer loyalty. As consumers become more environmentally conscious, they are increasingly choosing products from companies that share their values, providing a competitive edge for Heineken Vietnam.

Social and environmental benefit

Heineken Vietnam supports the use of abundant and stable sources of biomass materials through long-term collaboration with its steam supplier, contributing to Vietnam’s commitment at COP27 to uphold Vietnam's pioneering role in energy transition. Moreover, the brewery's presence has enticed numerous prominent companies to invest in the region, fostering the expansion of the biomass energy industry. This has led to the generation of employment opportunities and income for hundreds of residents.

On the environmental side, the initiative resulted in a reduction of 1869 tons of carbon emissions in 2022. Biomass boilers at QNB supply heat energy with a steam capacity of up to 12 tons/hour, leading to a remarkable 44% reduction in carbon emissions when compared to heat generated from diesel. Emphasizing the scalability of this project, Hoang states that “The technology and practices used in this transition can serve as a blueprint for others looking to make a significant environmental difference”.

Interview

Nguyen Huu Hoang, Sustainability Manager