TH Milk and Nui Tien Pure Water receive carbon neutrality certification.
On April 4th in Nghia Dan, Nghe An, TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited, both subsidiaries of TH Group, received certification for achieving carbon neutrality according to PAS 2060:2014 standards.
These are the first two companies in Vietnam to be assessed and certified by Control Union, an independent and reputable international certification organization.
Pioneering the development of a green economy and a circular economy.
TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited achieved carbon neutrality on December 31, 2023, in compliance with PAS 2060:2014 standards for the first phase from January 1, 2023 to December 31, 2023, and committed to maintaining carbon neutrality for the next phase from January 1, 2024 to December 31, 2028.
Speaking at the ceremony, Mr. Arghya Mandal, General Director of TH Milk Joint Stock Company, representing the two units, said: To achieve carbon neutrality, TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited have intensified greenhouse gas emission reduction activities through effective solutions such as reducing energy use, switching to green energy, improving equipment and technology; and effectively managing waste.
In 2023, the TH true MILK fresh milk factory, operated by TH Dairy Joint Stock Company, ceased using FO (fossil fuel)-fired boilers and completely replaced them with biomass-fired boilers, reducing CO2 emissions by more than 7,000 tons.2Equivalently, all high-pressure metal halide lamps at the factory have been replaced with LED lamps, saving energy and reducing emissions by approximately 214 tons of CO2.2equivalent. In addition, the factory has implemented a series of initiatives that both reduce emissions and improve production efficiency, such as: installing variable frequency drives to control the refrigeration compressors in the cold storage, replacing low-efficiency blowers with high-efficiency blowers using Turbo Blower technology; resetting the compressed air pressure used on the production lines; installing insulation on steam valves, etc.
At TH Milk Joint Stock Company, many other emission reduction activities are also implemented, such as planting new trees, reducing the use of plastic materials (for example, materials used to make yogurt spoons) and replacing them with more environmentally friendly and recyclable materials. Even after replacing them, the company still plans to reduce the number of spoons included with TH true YOGURT yogurt products by 50% (aiming for 100%).
This solution not only reduces greenhouse gas emissions but also promotes a green lifestyle and reduces single-use plastic waste. The company also raises employee awareness about water conservation, energy saving, and reducing environmental waste; uses employee transportation to reduce greenhouse gas emissions from personal vehicles; and increases the use of renewable energy in production activities.
Meanwhile, at Nui Tien Pure Water Co., Ltd., solutions and initiatives have been implemented comprehensively, including plastic reduction measures at the Nui Tien Pure Water, Herbal and Fruit Juice Factory such as: eliminating shrink wrap on bottle caps, reducing the weight of plastic in each water bottle, reducing the thickness of plastic labels, and reducing the amount of adhesive used for straws; the total amount of plastic reduced each year reaches approximately 600 tons.
The company also implements various energy-related solutions such as: building management system control, lighting system control, pipe insulation, electricity saving in offices and factories, and the application of flexible production processes. For example, during peak hours, the factory limits the use of energy-intensive equipment to optimize energy efficiency.
The Nui Tien Pure Water Plant is also actively promoting cooperation with partners to further develop its existing solar power system, contributing to a reduction of nearly 1,000 tons of CO2 emissions.2each year. At the same time, the factory has planned to gradually transition from using fossil fuels to renewable energy and plant more trees. In 2025, priority will be given to switching from burning DO oil (fossil fuel) in boilers to using biomass fuel (wood chips, rice husks, sawdust - by-products from the wood processing industry).
Mr. Arghya Mandal, General Director of TH Milk Joint Stock Company, representing the two units, said: “We focus on internal activities in our carbon neutrality efforts. The remaining annual emissions are offset by our participation in and support of projects that contribute to reducing emissions and increasing energy efficiency, certified according to international standards.”
Emission reduction efforts are meticulously measured using rigorous calculation methods and verified by third parties to ensure the effectiveness of emission reductions. All offsetting programs are fully compliant with PAS 2060:2014.
Mr. Arghya Mandal, General Director of TH Milk Joint Stock Company
Strong green transition
On the other hand, the carbon offset projects that TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited have chosen to support also bring social, environmental, and economic benefits, helping to contribute to the United Nations Sustainable Development Goals (SDGs).
Specifically, one green project that TH has chosen to support to offset carbon for TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited is a project to distribute and donate more than 200,000 energy-saving stoves to poor households in provinces and cities nationwide, especially people in remote, disadvantaged areas – an action for the community and climate change – VERRA 2548. Besides the benefits for climate and the environment (reducing deforestation and biodiversity degradation in local forests, helping to reduce fuel consumption by 40% to 60%), this is equivalent to contributing to a reduction of 400,000 tons of CO2.2Improved cooking stoves also offer direct benefits to society and public health by eliminating smoke and reducing related respiratory illnesses caused by cooking fumes.
In addition, TH also offsets carbon through renewable energy certifications (IRECs), contributing to the development of Vietnam's green energy projects – specifically wind power – and contributing to the development of the domestic carbon market.
“Wind energy is a clean energy source compared to other fossil fuels. Wind power technology causes less air, water, and soil pollution. Wind power projects also create jobs and improve livelihoods for local people. After our efforts to minimize greenhouse gas emissions, we still have a small amount of carbon to offset to achieve carbon neutrality. Offsetting through wind renewable energy certifications demonstrates TH's support for green energy projects and its responsibility to contribute to Vietnam's and the world's goal of reducing greenhouse gas emissions,” shared Mr. Arghya Mandal.
At the 2021 United Nations Climate Change Summit (COP 26), the Vietnamese government committed to achieving carbon neutrality and Net Zero by 2050. In the Resolution of the 13th National Congress of the Communist Party of Vietnam, the reduction of greenhouse gas emissions was clearly identified as one of the top priorities through various specific policies and action plans.
Leading this trend, since 2018, TH Group has pioneered the first step of conducting a greenhouse gas inventory, followed by strong actions for a green transition. The fact that two of TH Group's member companies have achieved carbon neutrality certification demonstrates TH Group's commitment and pioneering actions on the path to developing a green economy, a circular economy, and a roadmap to combat climate change, aiming for Net Zero.
The two companies conducted emissions inventory calculations according to the Protocol on Enterprise Greenhouse Gas Inventory Standard – the most widely used accounting standard; the carbon neutrality data of both companies were confirmed to be compliant with the requirements of PAS 2060:2014 – a technical standard developed by the British Standard Institute (BSI), a globally recognized, standardized, and transparent approach. Accordingly, the total amount of carbon neutralized emissions at TH Milk Joint Stock Company was 26,670.14 tonnes of CO2.2;At Nui Tien Pure Water Co., Ltd., the amount of CO2 was 11,631.68 tons.2.
The process of evaluating TH's carbon neutrality projects has been relatively smooth and quick, thanks to the Group's comprehensive and professional data system. This is due to its early preparation for carbon neutrality, through investments in advanced technologies from the outset, continuous innovation, and numerous emission reduction solutions. Since 2018, TH's units have begun conducting greenhouse gas inventories, and the data from this process is stored, recorded, and evaluated efficiently through the company's application of the latest SAP management system and its coordination and compliance with regulations from state management agencies regarding greenhouse gas inventories.
“This recognition reflects TH Group’s strong commitment to sustainable development and responsible business practices. During the verification and assessment process, we were very impressed by the innovative advancements that TH Group has made,” shared a representative from Control Union – the carbon neutrality assessment and certification body – at the ceremony.
According to Wouter Melis van Ravenhorst: Vietnam has set an ambitious goal of achieving Net Zero by 2050, and although there are currently no mandatory emission regulations for businesses, entities like TH Group are demonstrating pioneering and leading voluntary actions. In fact, only a few companies in Vietnam have been certified carbon neutral, two of which belong to TH Group. This achievement is proof that sustainable development can be implemented and yield positive results when businesses prioritize long-term environmental strategies.
TH Group's carbon offsetting initiatives further highlight its commitment to making a real difference. The Group has now committed to maintaining carbon neutrality by 2028 — an ambitious and encouraging commitment, as achieving this level of carbon neutrality requires ongoing investment and adaptation.
Mr. Wouter Melis van Ravenhorst - Managing Director of Control Union Vietnam
Currently, direct greenhouse gas emissions (Scope 1 and Scope 2) are taken into account, while indirect emissions (Scope 3) are not included in the carbon neutrality statement for this phase of the two companies. This is because quantifying emissions in Range 3 has low reliability due to insufficient reliable data on emissions from this range, and this data is outside the operational control of the two entities. However, according to Mr. Arghya Mandal, in the future, TH Milk Joint Stock Company, Nui Tien Limited Company, and TH Group will focus on reducing carbon emissions from their supply chains and related partners, thereby building a suitable roadmap towards Net Zero.
With the motto "Cherishing Mother Nature," since its inception in 2008, TH Group has consistently applied the green economy – circular economy model – across all its member units and followed a sustainable development orientation. TH Group's Sustainable Development Policy comprises six pillars: Nutrition and Health, Environment, People, Education, Community, and Animal Welfare. To date, TH has become a model of the green economy – circular economy model in Vietnam.
