From the 3R model to the desire to reduce global plastic waste

ANTD.VN - 10 years ago, when the concept of circular economy was still new to many businesses, Tan Hiep Phat Group started implementing a sustainable production plan, starting with reducing the weight of plastic bottles. Persistently implementing this plan until now, this trillion-dollar enterprise has achieved many great results, but Tan Hiep Phat still hopes that more businesses will implement circular economy, thereby contributing to environmental protection.

Benefits of the 3R model

In the book “Circular Economy and Pioneering Models” recently published by Investor Magazine, Mr. David Riddle - CEO of Tan Hiep Phat Group said that the Group has chosen to implement the 3R model of reducing waste, reusing and recycling. This is part of the Group's sustainable development strategy.

To materialize this model, in 2013, Tan Hiep Phat implemented the "Weight Reduction" project, which reduced the weight of each plastic bottle from 27g to 21.8g through research, design and innovation. The company used the most advanced European machinery to create overall efficiency in performance, reducing loss in the production process to help consume the least amount of electricity and water. Five years later, in 2018, the bottle weight continued to be reduced to 15.6g and 13.2g depending on the product type. Although only a few grams of plastic were saved per bottle, the environmental impact of this initiative was not small. According to Tan Hiep Phat's calculations, from 2013 to 2018, the Group reduced 34,000 tons of plastic waste and in 4 years, from 2019 to 2023, the number saved was 44,000 tons. Thus, in the past 9 years, the total amount of plastic waste reduced is 78,000 tons.

Not stopping there, Tan Hiep Phat continues to have many initiatives and optimizations in production. Since 2013, the Group has recycled 100% of shrink films and PE bags, then reused for many years to make bags for many purposes such as containing preforms, lids and garbage bags. Shrink films, PE bags and by-products in the production process are collected and go through the process of grinding and creating recycled PE granules. Through the process of blowing, welding and cutting with modern film blowing machines, the recycled plastic granules become shrink films for packing bottles or multi-purpose bags used in the Group's factories.

Ông David Riddle - Tổng Giám đốc điều hành Tập đoàn Tân Hiệp Phát chia sẻ về kinh tế tuần hoàn ảnh 2

Mr. David Riddle - CEO of Tan Hiep Phat Group shares about circular economy

In 2022, the company will continue to eliminate the use of carton boxes for Number 1 purified water and instead only use PE shrink film made from recycled plastic pellets. Even in the context of the complicated development of the Covid-19 pandemic, when the company is facing many difficulties, Tan Hiep Phat has continuously improved, installed and started operating PP and High Density Polyethylene (HDPE) recycling lines. The current maximum recycling capacity is 300 tons of plastic per month. This production line is to produce plastic pallets from HDPE scrap.

Sharing at the launch of the book “Circular Economy and Pioneering Models”, Mr. David Riddle said: “Tan Hiep Phat has achieved some initial successes, the most important of which is reducing waste of input materials by significantly reducing the use of plastic in a closed cycle”.

The article “Plastic waste is a resource” by author Nguyen Thoan in the book also quotes Mr. Le Xuan Dong - Executive Director, Market Research and Consulting Services, FiinGroup: “Plastic waste is a resource. However, this resource has not been exploited and used optimally in Vietnam”.

Tan Hiep Phat is a pioneer in reducing plastic waste and has gradually achieved important results.

Dây chuyền sản xuất nhựa tái chế trong nhà máy của Tập đoàn Tân Hiệp Phát ảnh 3

Recycled plastic production line in Tan Hiep Phat Group's factory

Learn, apply and reap economic benefits

In the book, Mr. David Riddle said that the circular economy brings many benefits to businesses as well as the whole society: Reducing the demand for raw materials that are becoming more and more expensive as they are increasingly depleted; Increasing business efficiency: innovating processes and unleashing creativity, creating economic opportunities for companies to innovate, design, recycle and create; Increasing competitive advantage as well as meeting consumer needs.

According to the leader of Tan Hiep Phat Group, the Group has studied the circular economic model from many famous businesses in the world , absorbed the good and suitable things and applied them to the business. For example, Clinique is owned by Estee Lauder Companies - a family company founded in the US in 1946. This is a successful brand but the most minimalist, by not using unnecessary packaging materials unless it really serves the needs of consumers. Or Boots - a British pharmacy, health and beauty care retailer; Waitrose - a British brand.

“In my view, the success of a circular economy hinges on reducing the inputs to products and manufacturing processes, which then reduces the huge amount of output that we need to recycle… Think of recycled plastic as a new raw material for a very successful industry that will soon be making Vietnam a greener country and could create hundreds of thousands if not millions of new jobs.

“There are already quite a few technologies in the world to create and use recycled plastics. The challenge is to have the right infrastructure to do this, on a large scale. And again, that is why cooperation on an unprecedented scale is necessary and urgent,” said Tan Hiep Phat CEO.

Enterprises need to take action on a large scale. Prof. Dr. Nguyen Mai - Chairman of the Foreign Investment Association emphasized that it is necessary to change the model from a linear economy to a circular economy because resources are being depleted. Providing figures to prove that the transformation is urgent, Prof. Dr. Nguyen Mai affirmed that large pioneering enterprises are doing well in the circular economy, but at the same time, it is necessary to support small and medium enterprises.

Tan Hiep Phat's General Director also believes that implementing a circular economy on a large scale is a challenge and not easy to do, so businesses need to participate in a real way. And to do this, Mr. David Riddle believes that a strong legal corridor is needed, with specific responsibilities defined for manufacturers and distributors regarding the collection, classification and recycling or payment of waste management costs for discarded products, especially waste that is being dumped into the ocean, polluting the sea. At Tan Hiep Phat alone, this group aims to reduce more than 112,000 tons of plastic by 2027 and continue to expand the circular economy, joining hands with other plastic recycling businesses.

Tan Hiep Phat also offers 3 solutions to implement the circular economy: policies requiring businesses to follow a specific roadmap; Encouraging businesses to implement the circular economy by creating attractive conditions and communicating about the circular economy so that state agencies, businesses and people are aware of the necessity and positive impacts of the circular economy.

“At Tan Hiep Phat, we continue to communicate to the community and stakeholders about the benefits of sustainability and the circular economy to help people understand that all big ideas start with a small step and that each of us can make a difference. We believe that urgent action is needed to avoid the disasters that we and our children will face if we do not act quickly. Doing nothing is not an option and Tan Hiep Phat is committed to being at the forefront of these initiatives in Vietnam,” emphasized the leader of Tan Hiep Phat Group.

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