However, many businesses today still do not fully understand what green transformation in business entails. This article will provide detailed answers on this issue for customers.
Green transformation is the process of building an economy with very low to zero emissions, achieved through civilized development, and efficient use of natural resources. It aims to reduce ecosystem degradation and the negative environmental impact caused by humans.
A green economy will be associated with factories and enterprises that produce minimal smoke and dust. The energy used is clean, renewable, and environmentally friendly. For example, production and business activities do not pollute the environment. Agricultural activities like farming and livestock raising do not use harmful chemicals that pollute the environment and harm human health.
Green transformation has become a global trend for several reasons, bringing many benefits to businesses, such as:
Increase Market Share – Revenue – Competitive Advantage
Up to 66% of global consumers say they are willing to pay more for products and services from environmentally responsible companies (Nielsen 2021). You can easily notice that many products trending towards “Organic” or less harmful to the environment are increasingly appearing and being prioritized by customers over traditional products.
The green transformation process in businesses helps them enhance their market competitiveness, increase market share, revenue, and customer and partner retention. Many pioneering businesses in green transformation are gradually increasing their market share and gaining a competitive advantage over others.
Positive Impact on Brand
Developing green products is not just an environmental obligation of businesses but also a "golden" opportunity to enhance brand identity. Especially as customers increasingly value and prefer companies with strong commitments to environmental and social protection.
Government Support Policies
Today, both governments and international organizations frequently offer policies to encourage and favor businesses starting green transformations. This not only creates convenience but also promotes innovation and prospects in researching and producing green products for society.
Attract Investors
The potential for green products is enormous, and the market is increasingly accepting and valuing green products and services. This opens up huge financial opportunities for many businesses. Companies can easily attract investments and receive financial support from international organizations when they can prove their commitment to the sustainability of green transformation.
Today, green transformation is not only feasible but also mandatory. This is not just a task for one person or organization but a collective effort from many businesses working together. Governments are also providing a lot of support for businesses leaning towards green operations.
Experts suggest five aspects every business should consider for sustainable green growth through green transformation:
Several feasible green transformation methods are being applied in the Vietnamese market, including:
Optimizing Energy Efficiency
This involves using green energy – renewable energy to replace traditional fossil energy. New digital technologies are applied to optimize the process of generating renewable energy and controlling energy systems.
Managing Resource and Waste Usage
The larger the business, the more waste it generates daily. However, businesses can easily manage and use resources and waste with new management technology systems.
Notably, the smart water management system can reduce water wastage, and sensor technology can reduce waste, which is being adopted by many textile and food production companies.
With sensor technology, businesses can monitor waste levels and inform management about collection needs to reduce pollution and avoid resource wastage. This also limits unnecessary waste collection.
Integrating Energy Management Systems
Managing energy and resource consumption data can significantly impact the entire economy and society. However, if done intelligently, data can be collected and analyzed automatically.
The system will collect and analyze data to optimize energy and resource use, contributing to reducing energy security risks and emissions from businesses.
Creating Standard Energy Data Models
Standard energy data models help measure and significantly improve energy efficiency, especially in production and business.
For example, monitoring and evaluating a car manufacturing company's energy consumption revealed that the unit consumed 40% of its energy even when not producing anything. Thus, the company could identify and cut off this wasted energy, reducing costs and emissions.
Exploiting and Analyzing Data
Analyzing data from various sources in production and business helps businesses understand human impact on the environment and create more sustainable solutions.
Data analysis also suggests performance improvements, reducing energy to promote green transformation. This process provides real-time consumption forecasts and updates.
VertZéro always accompanies businesses on the green transformation journey with consulting services on ESG practice roadmaps and reporting solutions, accelerating the transformation with Carbon Accounting solutions.
Consulting Businesses on ESG Practice Roadmaps and Reporting Solutions
ESG (Environment – Social – Governance) is a set of three standards measuring factors related to the sustainable development direction and activities of businesses. FPT IS supports businesses in finding innovative solutions to reduce negative environmental impacts and create economic value.
In the Net-Zero race (the trend of bringing net emissions to zero globally due to human activities), if businesses go alone, they will undoubtedly spend much time researching and implementing. With VertZéro's support, businesses can shorten the time to research and implement ESG reporting. This gives businesses a competitive advantage and leaves a good impression on investors, shareholders, customers, and other stakeholders.
Accelerating Green Transformation with VertZéro
To move towards Green Transformation, one of the first things businesses need to do is reduce carbon emissions, carbon footprint from green production activities, internal operations, and the supply chain. To reduce emissions, businesses first need to understand and capture data about them.
The VertZéro greenhouse gas inventory solution – a product of the Made by FPT technology ecosystem, aims to comprehensively digitize the environmental data collection, calculation, management, and emission reporting processes, helping businesses track their commitment progress and ensure international standards.
From there, businesses can develop action strategies to reduce emissions, creating a good impression on investors, shareholders, and customers.
