Larry Lee, SABECO’s Deputy General Director shared about the company's efforts to the Việt Nam's sustainable development. VNS Photo

Saigon Beer-Alcohol-Beverage Corporation (SABECO) prioritises sustainability in all our efforts, understanding that it not only strengthens our organisation but also brings positive change to society, said Larry Lee, SABECO’s Deputy General Director.

Lee made the statement at the Việt Nam Corporate Sustainability Forum (VCSF) 2024, themed 'Net Zero 2050: Nurturing Trust Creating Transformation' held in Hà Nội on Tuesday.

He said that SABECO is a major company in Việt Nam dedicated to supporting social and environmental development in the country. This commitment adds value for stakeholders, shareholders, customers and international partners. SABECO has embraced ESG principles to drive the green transformation, covering various aspects of their operations. In their daily production and business activities, they consistently focus on applying these principles.

“This dedication is vital to us and the communities we serve. SABECO runs 26 breweries and numerous trading companies, with thousands of points of sale. We view sustainability as the cornerstone of our operations, benefitting not just our business but also society at large. This commitment is crucial for SABECO and the communities where we operate,” he added.

However, on the path to sustainable development, SABECO has encountered numerous challenges. Like many pioneering companies in the green transformation, SABECO faces the difficulty of adapting and applying new technologies. There is always a technical gap and associated costs. Minimising these costs, while ensuring they are necessary for innovation, is a constant challenge. Another barrier is the significant resources and long-term planning required, despite the need for incremental implementation.

“We must be careful and thorough because sustainability is not just about the present model but also about the future. Regulatory education is another significant challenge, requiring businesses not only to comply but also to proactively operate within frameworks that ensure strong growth and positive contributions to the country,” he said.

“As a company, we cannot approach this alone; we need an ecosystem. We must collaborate with partners within the same ecosystem, regardless of whether we are in the beverage or fast-moving consumer goods (FMCGs) industry.”

Building strong relationships is crucial in the journey towards sustainable development. SABECO relies heavily on its extensive network of partners, including those in the supply chain. It is essential to find partners who share their ideology, value sustainable development and aim for common standards.

“When everyone shares the same vision, the burden of cost management becomes lighter because it is shared among all,” the leader said.

SABECO's sustainable development strategy focuses on maintaining balanced progress across the ESG pillars: Environment, Social and Governance. SABECO is committed to advancing its ESG strategy by identifying and evaluating key topics that impact stakeholders in production and business development activities, alongside setting ESG priorities and goals.

SABECO aims to become a leading beverage industry group in Việt Nam, establishing a strong presence both regionally and internationally. To achieve this vision, SABECO's sustainable development strategy focuses on balancing the key ESG pillars. They are dedicated to advancing their ESG strategy by identifying and addressing critical issues affecting stakeholders and prioritising ESG goals.

In particular, with regard to the environment, SABECO is committed to adhering to environmental protection laws, actively engaging in climate change mitigation and reducing greenhouse gas emissions. They are dedicated to continuously improving environmental practices, focusing on efficient use of resources, raw materials, packaging, energy and water.

SABECO's rooftop solar power systems at its factories helps reduce 18,000 tonnes of CO2 emissions each year. Photo courtesy of SABECO

The country’s largest brewery has implemented many initiatives.

“SABECO has completed two phases of installing rooftop solar power systems across 17 out of 26 factory sites. These systems now supply nearly 23 per cent of the electricity needed for our factories, leading to a savings of 25 million kWh annually and a reduction of 18,000 tonnes of CO2 emissions each year. This initiative supports our goal of achieving net zero emissions by 2050,” he said.

In the beer and beverage industry, 70 per cent of the input material is water. Reducing water consumption is also crucial to meeting sustainability goals. SABECO has reduced the amount of water required to produce each litre of beer from five litres in 2018 to less than three litres in 2022.

SABECO has transitioned to using biomass fuels, such as rice husks, sawdust and cashew shells, instead of traditional fossil fuels in their boilers.

They have also implemented a Clean-in-Place (CIP) wastewater treatment system to enhance their environmental stewardship.

A packaging line of SABECO. Photo courtesy of SABECO

The company's packaging solutions include thinner cans, lighter cartons and reusable beer bottles and cans, which help reduce their environmental footprint.

In another important step forward, SABECO officially joined Packaging Recycling Organisation Việt Nam (PRO Vietnam), with an aim of fulfilling the company’s Extended Producer Responsibility (EPR), working towards a shared goal for all businesses in the industry.

This participation will also help SABECO contribute to shaping a practical and effective EPR regulation that suits the market context in Việt Nam.

“By integrating these initiatives, SABECO is committed to fostering sustainable development and contributing positively to both the environment and the communities we serve,” he said. — VNS