Big benefits from nature-based solutions

Traphaco CNC's yellow chrysanthemum growing area in Hung Yen. Photo: H.Dieu

Linking 4 houses according to international standards

At the yellow chrysanthemum growing area in Dong Trai village, Luong Tai commune, Van Lam district, Hung Yen province developed by Traphaco High-Tech Joint Stock Company (Traphaco CNC), the reporter clearly saw the effectiveness of the 4-house cooperation model: households, businesses, scientists and the State. With this model, Traphaco CNC supports people in planting, caring for and harvesting yellow chrysanthemums according to strict processes, applying advanced cultivation techniques to ensure high quality.

After harvesting, the yellow chrysanthemums are promptly processed at the factory, ensuring the integrity of the quality and creating raw materials that meet GACP-WHO standards. Thanks to that, Traphaco CNC proactively supplies medicinal herbs for products such as eye-brightening medicine, chrysanthemum - cordyceps tea... On the farmers' side, income and life are also improved when the company commits to signing regular contracts for 3 years. Although the price of yellow chrysanthemums is decreasing, the company still ensures to purchase at a price about 15% higher than the market price.

Sharing about this model, Ms. Dao Thuy Ha, Deputy General Director of Traphaco Joint Stock Company, said that the 3 pillars of sustainable development at Traphaco were realized by a green value chain from standardized input materials according to international standards GACP, building a modern manufacturing plant meeting GMP-WHO standards, managing a wide distribution system and bringing high-quality, effective and safe pharmaceutical products to people. Traphaco was the pioneer in launching the GreenPlan sustainable medicinal herb development initiative, creating a model linking 4 houses to develop growing and harvesting areas. To date, Traphaco had 7 medicinal herbs with growing/harvesting areas meeting GACP, dozens of medicinal herbs with growing areas controlled according to GACP. In the coming period, 8 new medicinal herb areas would be developed and the procedures for granting GACP-WHO certification would be completed.

Also talking about the business orientation, Ms. Bui My Trang, Sustainable Development Manager of HSBC Vietnam, said that in more than 150 years of HSBC's operations globally, including in Vietnam, HSBC always had strong commitments to social responsibility activities, especially programs related to biodiversity conservation and climate change response. For example, the project planting 150 hectares of mangrove forests in Mui Ca Mau National Park, using the natural regeneration zoning method. When reaching maturity (7-8 years), these 150 hectares of forest would be able to capture 20,000 tons of CO2/year and play role as a buffer zone between the sea and the mainland/rivers and streams, protecting the Mekong Delta from natural disasters such as saltwater intrusion, erosion, floods…

The positive benefits

These business practices are also known as nature-based solutions (NbS), which use natural ecosystems and processes to solve social, economic and environmental challenges. According to the World Bank (WB), this group of solutions is expected to contribute 37% of greenhouse gas emissions reductions by 2030 under the Paris Agreement, while also bringing additional benefits such as an increase of resilience and rehabilitation of the environment and ecosystems for natural disasters.

According to Mr. Pham Hoang Hai, Head of Partnership Relations of the Secretariat of the Vietnam Business Council for Sustainable Development (VBCSD) under the Vietnam Chamber of Commerce and Industry (VCCI), nature-based business solutions brought three positive benefits to businesses.

The first is to enhance the reputation, brand value and corporate responsibility towards social issues, helping businesses meet international standards, enhancing their position in the global value chain; at the same time, enhancing accountability and transparency in production and business for stakeholders. The second is to create integrated values, bringing simultaneous environmental, economic and social values ​​to stakeholders; ensuring fairness, integration and inclusiveness for local communities as well as in the business production and business value chain of the businesses. The third is to enhance risk management and financial efficiency of businesses through supporting businesses in production and business, adapting in the context of climate change, extreme weather and natural disasters; helping businesses develop projects and programs to improve economic efficiency, while gradually restoring the ecosystem.

However, businesses implementing this solution still face many challenges. According to Ms. Do Hoang Anh, Director of External Relations for East Asia of British American Tobacco Group, the development of sustainable raw materials still faced difficulties related to the compliant commitment of third parties, or the compliance awareness of local people in forest planting projects as well as the impact of natural disasters, weather... In addition, Ms. Hoang Anh said that many of the Group's projects were related to forest planting but not have specific policies such as reducing greenhouse gas emissions or carbon benefit mechanisms… so it was necessary for the State to soon have specific regulations so that the Group could continue to reinvest and increase long-term investment for the next projects.