Energy and greenhouse gas emissions

Global warming significantly affects not only ecosystems but also economies, making energy sources and their efficient use a leading factor in sustainability.

Through the Science-Based Targets Initiative (SBTi) tool, we aim to reduce greenhouse gas emissions by 50% in both Scope 1 and Scope 2 the base year 2019 to 2030 in line with the goal of maintaining the global temperature increase at 1.5 degrees Celsius. In order to achieve the goal, we make continuous efforts to introduce energy efficiency initiatives and make gradually transition to renewable energy sources.

To determine where losses are in the production process, why the losses happened, and to have the most effective improvement solutions, in 2020, we cooperated with the Cleaner Production Center Vietnam (VNCPC) to conduct an independent assessment of the resource efficiency and cleaner production for all of our three factories in Hanoi, Hung Yen, and Dong Nai. Thereby, we have effective plans to reduce energy consumption including electricity, LPG, and petrol, specifically:

• Installing inverters in the padding production workshops and the cotton mattress workshops;
• Replacing compact light bulbs with LED light bulbs;
• Optimizing the pickup route;
• Aiming at using renewable energy sources: changing to renewable energy sources by installing rooftop solar panel systems. The use of renewable energy sources not only helps to reduce greenhouse gas emissions but also helps the company significantly reduce operating costs.
• Building a new factory in Giang Dien, Dong Nai according to EDGE Advanced standards, saving at least 40% of energy consumption, at least 20% of water consumption, and at least 20% of energy embodied in construction materials.

We clearly understand the principle of “What gets measured, gets managed”, whereby, we measure, calculate, and track energy consumption and greenhouse gas emissions periodically. At the same time, the level of environmental goals fulfillment is achieved through maintaining ISO 14001:2015 certification and performing an assessment of the facility's Environmental Management System through the Higg Index.

For us, to develop sustainably, it is not only our own efforts but the efforts of the entire supply chain. From 2022, we start requiring our suppliers to participate in the assessment of the Environmental Management System of the facilities based on the Higg Index, and thereby gradually develop the Scope 3 GHG emissions calculation under the guidance and discussion with the Climate Action Corps.