Coca-Cola Vietnam’s Environmental Commitments — Historical Case Study

Growing the business without increasing its carbon footprint

Coca-Cola Vietnam’s approach to environmentally responsible growth began in its early years and received particular emphasis when the group committed an additional USD 300 million to Vietnam. The funding supported infrastructure development and new production lines at its three factories in Hanoi, Da Nang and Ho Chi Minh City.

At the time, Coca-Cola Executive Vice President Irial Finan said that the advanced, environmentally oriented production lines would reduce electricity consumption by 10%, steam consumption by 15% and water consumption by 20%.

According to Finan, the investment was consistent with Coca-Cola’s commitments to energy efficiency and environmental protection, which had long been among its measures of business success. Environmental considerations were incorporated into improvement investments. For example, Coca-Cola Vietnam introduced membrane bioreactor (MBR) technology to improve treatment efficiency and the quality of wastewater returned to the environment.

The article reported that treated water was also reused for irrigation, tree planting and fish rearing at the plants. Projects to optimise equipment and bottle cleaning, reuse reverse-osmosis water and collect rainwater aimed to reduce annual groundwater extraction. These improvements reportedly saved between 3% and more than 5% of water use across the three factories. At the Thu Duc factory in Ho Chi Minh City, the amount of water required to produce one litre of beverage fell by 6%, a significant reduction for a business whose products primarily contain water.

Replacing fuel oil with compressed natural gas (CNG) and biomass was another element of the company’s commitment to business growth without increasing carbon emissions. The original article described CNG as a fuel option intended to reduce greenhouse gases, pollutants such as NO₂ and CO, and particulate emissions. It also reported measures involving forklifts and transport vehicles: avoiding peak-hour movements, maintaining vehicles and meeting demanding exhaust-emission specifications to protect the environment around the factories.

Giving priority to nearby residents

The green roads leading to Coca-Cola’s factories contrasted with the large production capacity inside. The company sought to reduce odours and noise for surrounding communities. Waste was collected in designated containers to control smells and leachate; hazardous waste was kept in dedicated storage areas and treated monthly. Noisy equipment, including blowers, generators, compressors and boilers, was enclosed in sound-insulated rooms. Although trucks entered and left the factories during busy periods, horn use was restricted, and air horns were prohibited in production areas to protect the tranquillity of neighbouring residential areas .

Efforts to save energy and water and reduce noise, wastewater and air emissions helped the Ho Chi Minh City factory obtain LEED certification in 2014. LEED stands for Leadership in Energy and Environmental Design and assesses building sustainability. At the time of the original report, the Da Nang and Hanoi factories were also upgrading infrastructure with LEED certification as a goal. The recognition was presented as a positive development for both the company and nearby communities.

Community support programmes

Improving people’s lives was another part of Coca-Cola Vietnam’s sustainability approach, with residents around its factories among the first intended beneficiaries.

The report described residents in Thu Duc gaining access to drinking water from a solar-powered purification system at an EKOCENTER. Designed as a community support centre, it provided purified drinking water, solar energy and wireless internet. The article also reported that more than 50,000 people in seven provinces and cities had gained daily access to clean water through a community water programme implemented over ten years with local authorities and non-governmental organisations.

The article highlighted Coca-Cola’s eight-year involvement in a biodiversity conservation and community-based ecotourism project at Tram Chim. It presented environmental investment and improvements to local living conditions as important contributions to the company’s reputation in Vietnam.

Source: collected article; historical report.