VI1. Sustainable factors are affecting manufacturing businesses
1.1. COP26 Conference and big challenges for manufacturing businesses
The 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) reaffirmed their commitment to quickly and sustainably reduce CO2 emissions, aiming for a 45% reduction. global CO2 emissions by 2030 and achieve the Net-Zero goal (net zero emissions) by 2050. The whole world is shifting its focus to sustainable development to pursue longer-term goals and for the common good of the world. This poses new requirements for businesses, especially manufacturing businesses that need a strategy and a long-term roadmap to achieve sustainable development goals.
Major markets such as the US and EU have begun to implement policies to limit emissions in production and impose increasingly strict requirements on manufacturing enterprises. Specifically, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will start taxing products imported into the EU in sectors with high carbon intensity, for example: steel, cement, fertilizer and electricity, will be included in the CBAM regulatory mechanism, starting in 2023. According to the Clean Competition Act, the US plans to impose absolute taxes on countries that cannot demonstrate carbon emission measurement mechanisms. transparent. These new policies and mechanisms create a new wave of challenges for manufacturing businesses to transform to maintain competitive advantage and control costs more effectively.
Vietnam is recognized as one of the countries that has set ambitious goals for reducing carbon emissions, including a commitment to net zero emissions by 2050. Accordingly, the Ministry of Industry and Trade has set out a strategy to promote greening the distribution system and developing a national supply chain of environmentally friendly products and services, prioritizing products produced and supplied by small and medium-sized enterprises; Promote the development of environmental industry and waste recycling industry.
Figure 1: The COP26 conference poses new requirements for businesses, especially manufacturing businesses, which need to have a strategy and a long-term roadmap to achieve sustainable development goals.
1.2. Trends in shopping and consuming products with sustainable elements
Consumers favor sustainable products, most popular among successful people and young people, often in cities and large urban areas. Detail:
Consumers aim for sustainable values that bring benefits to health, nature and the environment. Consumers sympathize with and support brands that are responsible for climate change, demonstrated through greening messages and products. Products that are sustainable and environmentally friendly gradually become a measure of value for customers and consumers, thereby creating requirements for manufacturing businesses to transform and reshape their competitive advantage. in all professions.
Consumers are aware of the need for actions to help improve the climate and they show a willingness to contribute to building a sustainable living environment through spending on “green” certified products. “does not affect the environment”
