Sustainability, essential key for business growth

Leo Evers, managing director of HEINEKEN Vietnam

With HEINEKEN named the most sustainable company in Vietnam, could you please share your company’s path to this prestigious recognition by the Vietnam Chamber of Commerce (VCCI)?

At HEINEKEN, sustainability is an integral part of our entire supply chain. From the very first days of HEINEKEN in Vietnam, we have made a clear commitment to becoming a leading sustainable business in Vietnam. We do not measure success just in terms of revenue or profit – it is vital to us that our growth does not come at the cost of the environment and that we can positively contribute to improving the lives of the people and the communities here.

Our sustainable strategy, ‘Brewing a Better Vietnam’, has six areas of focus, namely promoting responsible drinking, protecting water resources, reducing CO2 emissions, supporting our communities, sourcing sustainably and locally wherever possible, and promoting health and safety.

With this strategy, we have made significant progress and achievements in applying a circular economy, or a zero-waste approach. To date, four of our six breweries use 100 per cent renewable energy sources, which has contributed to us reducing our CO2 emissions by nearly 50 per cent in only two years. The other two breweries will also complete this transition by 2019. HEINEKEN Vietnam has also reduced water use dramatically. In 2016, we halved the amount of water we consumed as compared to 2008. In addition, our breweries produce almost no waste. Approximately 99 per cent of residual products are reused or recycled, including for use as animal feed and fertilizer, contributing to a circular economy.

As part of HEINEKEN Vietnam’s commitment to sourcing locally, 100 per cent of HEINEKEN Vietnam’s packaging materials are purchased locally. This creates more jobs and prosperity for the people of Vietnam. Accordingly, HEINEKEN contributed VND33.5 trillion ($1.52 billion) to Vietnam’s economy in 2016, equivalent to 0.75 per cent of Vietnam’s total GDP. We expect that this number increased further in 2017.

We are also strongly committed to promoting responsible consumption and supporting the local community. More than 10 per cent of the Heineken brand’s media budget has been invested in promoting responsible drinking, with massive impacts. HEINEKEN’s “When you drink, never drive” campaign in partnership with the National Traffic Safety Committee and Uber has reached 65 million views and also been backed by 130,000 free safe trips home for consumers in the form of free taxi vouchers. In addition, our responsible drinking activities at the Tiger Wall series of events reached 40,000 commitments to drinking responsibly by young people across Vietnam.

Furthermore, HEINEKEN Vietnam funded more than VND25 billion ($1.14 million) in community sponsorships, including 19 major clean water projects nationwide, and we always provide a helping hand to people in need, such as the thousands of households who were hit by typhoon Damrey.

Throughout HEINEKEN Vietnam’s 26-year journey of ‘Brewing a Better Vietnam’, ensuring a positive impact on people, planet, and prosperity has always been at the heart of the business. We are pleased to see our tremendous efforts and meaningful contributions recognised by the Vietnamese government and are very proud that HEINEKEN Vietnam is the most sustainable company in Vietnam.

I understand the circular economy model of HEINEKEN Vietnam is one of the best examples of sustainability. Could you please elaborate? What is its socio-economic impact?

The final aim of a circular economy is to create zero waste at the end of the production process by creating new value from what was thought of as waste. Reducing carbon emissions is one of the six key focus areas of our sustainability strategy, ‘Brewing a Better Vietnam’. How HEINEKEN Vietnam has embarked on the renewable energy journey is an amazing sustainability story that I am personally very passionate about.

By turning rice husks, a waste product, into thermal energy for brewing our beer, we positively impact people, planet, and prosperity. In essence, through partnering with biomass suppliers, we purchase waste materials such as rice husks from rice farmers. We use that organic waste material as fuel in our special boilers – removing the need to use diesel to provide our thermal energy. The result of switching from diesel boilers to using biomass is that we create jobs and income for the biomass industry, we create additional income for the farmers supplying the rice husks, and, at the same time, we reduce not only our own energy costs but also our CO2 emissions. In the last two years alone, we have reduced our carbon emissions by around 50 per cent.

We have moved closer to brewing 100 per cent from renewable energy at all of our breweries, whilst being 99 per cent waste free. By 2020, we will have all our breweries using renewable energy with biomass for all of their thermal energy needs. We fully commit to using local suppliers to create more jobs for locals, bringing prosperity to Vietnam and other stakeholders.

Many small businesses think that embedding sustainability into their business practices would cost more. Is this the case for HEINEKEN Vietnam? Do you have any tips for other small businesses that wish to follow the same model?

As I have just shared with you, by applying a circular economy, we generate benefits for all parties, including cost savings for our business. The world’s natural resources are limited, so sustainable development is vital for all businesses to grow.

I believe VCCI and the government have done a really great job of communicating and inspiring the private sector to do business in a more sustainable manner. More and more businesses are viewing sustainability as an opportunity, not a cost. The key here is how to identify the right area to tackle, where your company can create the greatest impact. For small businesses I would advise not try to do it all at once. Work out one or two areas where you can have the most impact, depending on your actual business, and focus on making gains in those areas first.

At HEINEKEN Vietnam, we were able to achieve success because we found support from all our stakeholders, internally and externally. Often, the biggest challenge is awareness, which is why we invested a lot in promoting sustainability awareness amongst all our key stakeholders. Thereafter, we have to ensure to execute each project well and keep our stakeholders committed to continue receiving support.

The main point is that the UN’s sustainable development goals cannot be achieved by one business alone, or just the private sector, or just the government. It is vital that the private sector, government, and NGOs all work together to pursue these goals. Together, we can ensure that growth does not come at the cost of the environment and improve the lives of our people and the communities in which we operate. This way, we all truly prosper.

In your leadership role, what support do you expect from the Vietnamese government in implementing your sustainability agenda?

We truly appreciate the Vietnamese government for their significant support and encouragement for the business community, including HEINEKEN Vietnam, in implementing our sustainability agenda for a better Vietnam.

We look forward to continued support from the government in terms of policies and business environment for sustainability-conscious organisations. With the government’s support, we can further integrate sustainability into our overall business, further contributing to the sustainable development of Vietnam. We are particularly happy to see the government’s increasing focus on a circular economy, which we are also passionate about.

The increasing energy demands forecasted for Vietnam, combined with the forecasted increased reliance on coal power, does present a real concern for business and society in Vietnam. I think the government should accelerate its encouragement for renewable options to develop fast as an alternative, as well as encourage and incentivise businesses like ours to develop their own renewable energy sources, as we have done with biomass.

On the occasion of Tet, do you have any message for our readers?

I understand that Vietnamese people believe that the Year of the Earth Dog is the year of wisdom, exciting discovery, amazing experiences, and glorious success. I wish everyone a wonderful Year of the Earth Dog, a joyous Tet holiday, and may you have wonderful reunions with your families and friends. As many of us are likely to celebrate over a drink this Tet, be sure to enjoy it responsibly. Please remember, “When you drink, never drive”. The best way to have a great holiday is to keep ourselves safe.

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