AEON Vietnam: Driving sustainable consumption from the retailer’s mission

September 12, 2023 - 08:24
At AEON Vietnam, Sustainability is deeply associated with the company's operations and business philosophy. Its Corporate Sustainability strategy is based on three pillars: Economy (Profit), Environment (Planet), and Society (People). As a major retailer, the company recognises Sustainable Consumption as one of its core objectives, contributing to Vietnam's green growth.

At AEON Vietnam, sustainability is deeply associated with the company's operations and business philosophy. Its Corporate Sustainability Strategy is based on three pillars: Economy (Profit), Environment (Planet), and Society (People). As a major retailer, the company recognises Sustainable Consumption as one of its core objectives, contributing to Việt Nam's green growth. To actualise this goal, AEON Vietnam has been actively implementing a variety of initiatives, accomplishing remarkable achievements during its 12 years in the market.

Green Consumption and Sustainable Consumption - one of the 17 Sustainable Development Goals established by the United Nations in 2015, are no longer strange concepts but are increasingly strongly promoted by countries and businesses since the global pandemic.

Through interactions with consumers when providing a variety of products and services through their distribution channels, retailers directly contribute to orienting and promoting customers' sustainable consumption behaviour. As a result, retailers become a bridge between manufacturers and customers, simultaneously facilitating the dissemination and swift, effective implementation of government policies.

The National Green Growth Strategy for 2021-2030, with visions toward 2050 ratified by the Vietnamese Prime Minister's Decision 1658/QD-TTg dated October 2021 has affirmed sustainable consumption as one of the main objectives to be implemented. In this process, the collaboration of retail businesses is certainly indispensable.

As one of the market-leading retailers in Việt Nam, in recent years, the Japanese retailer has been implementing many initiatives to support sustainable consumption behaviour and received positive feedback from customers, partners and employees.

AEON Vietnam is involved in a wide range of actions contributing to national green growth through two main goals: Greening their retail operations and Promoting sustainable consumption.

Greening retail operations

AEON Vietnam accompanies customers on the "green" journey through a number of outstanding campaigns and initiatives. Since the first general merchandise store (GMS) in Việt Nam opened its doors in 2014, 100 per cent of goods packaging bags in GMS for customers throughout AEON Vietnam's retail system are biodegradable-plastic material.

Since 2019, the Japanese retailer has been implementing the Plastic-Free-Community project, concentrating on initiatives to facilitate customers and employees in making sustainable consumption decisions and establishing the habit of bringing their own bags when shopping to help reduce the amount of single-use plastic bags. One of the ideas worth mentioning is "Rent a bag" - letting customers rent eco-friendly bags which was implemented in June 2022, or activities such as deducting VNĐ1,000/transaction or implementing a Greenlinecashier counter for customers who refuse to use biodegradable plastic bags. 

Greenlinecashier counter for customers who refuse to use biodegradable plastic bags at AEON General Merchandise Stores.

In the first eight months of 2023, the number of biodegradable plastic bags across the entire General Merchandise Store system of AEON Vietnam decreased by 3.9 million bags (~ 1.3 million transactions). Additionally, AEON Vietnam has proactively switched biodegradable plastic bags at the bread counter (AEON Bakery) into paper bags, changing paper cups, and plastic bowls at the food buffet area (Delica), into paper cups, bagasse bowls, etc. in an effort to provide "greener" choices to consumers.

Furthermore, AEON Vietnam has ceased selling disposable plastic items such as plastic straws, cups, bowls, and plates in the supermarket area and has instead started offering customers new goods having comparable functionalities but made from more friendly materials like paper, rice flour, cornstarch, bagasse, etc. Payment and member accumulation points when shopping also become "greener" thanks to the membership digital application, replacing traditional physical cards.

Promoting sustainable consumption

With a desire to assist Vietnamese businesses in promoting local products to consumers, and promoting domestic consumption, thereby improving the competitiveness of the economy as well as reducing the environmental impact of the supply chain, many activities are implemented annually by AEON Vietnam.         

Typically, it has been conducting Business Matching events, the local product exhibitions coordinated with the Hồ Chí Minh City Trade & Investment Promotion Center (ITPC) as well as the Department of Industry and Trade of many localities. By 2022, a total of 406 Vietnamese companies had been involved in connecting, displaying and exhibiting to customers more than 2,000 local goods. 

The local product exhibition and Business matching 2022 at Shopping mall AEON Tân Phu in HCM City. 

In 2020, the Japanese retailer continuously deployed supplier training activities to improve knowledge and update regulations and standards when bringing goods into the AEON system, with a learning rate of 97 per cent of members responded positively. According to AEON Vietnam, the majority of Vietnamese suppliers still struggle with product quality inspection and traceability. Through the supplier training activities, AEON Vietnam supports them in solving these problems so they can bring better products to the market.

Conclusion

According to a AEON Vietnam's representative, this Japanese retailer will continuously strive to apply sustainable "green" initiatives to accompany Việt Nam's long-term green growth journey, in consideration of the directions and policy corridors of the retail industry. Typically, realising the roadmap to reduce 50 per cent of greenhouse gas emissions during operations by 2030, AEON will continue to promote green development activities in the future to create more value and contribute more to the community.

It is undeniable that retailers and supply chains play a significant role in "greening" lives and encouraging sustainable purchasing practices. With persistent efforts in business activities over the years, AEON Vietnam has achieved many successes in minimising the impact of business on the environment and combining with partners to promote sustainable consumption habits to millions of Vietnamese consumers.

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