The Company designates June and December of each year as Environmental Awareness Months, promoting various energy-saving and carbon reduction policies to employees. Specific annual electricity-saving targets are set for each production site, with performance tracked and disclosed on the Company’s website. Greenhouse gas inventories are conducted in accordance with ISO 14064-1, with verification entrusted to the third-party organization BSI.
Base Year and Data
The baseline year is 162,528.03 tons of CO₂e.
Reduction Targets
The reduction targets are as follows: a 1% reduction in 2024, a medium-term target of 3% annual reduction from 2025 to 2030, and a long-term target of 5% annual reduction from 2031 to 2050.
Strategy and Specific Action Plans
The Company has implemented ISO 14064-1 greenhouse gas inventory and obtained third-party verification, and will continue to conduct the inventory annually.
The Company has implemented the ISO 50001 Energy Management System and obtained third-party verification, and will continue to implement energy-saving and carbon reduction initiatives annually.
In response to the EU ETS reporting under the EU CBAM, the Company has implemented ISO 14067 for product carbon footprint accounting and will conduct formal verification once the official verification standards are published.
The Company is currently evaluating the feasibility of installing solar power systems or purchasing green electricity, gradually moving toward net-zero emissions.
According to Vietnam’s Decree No. 06/2022/NĐ-CP on GHG management, from 2025 onward, VPIC1 will submit a third-party verified GHG inventory report to the Vietnamese government every two years, and by the end of 2025, will present a carbon reduction plan for 2026–2030. VPIC1 plans to adopt ISO 14068 in mid-2025 to develop this reduction plan and, starting in 2027, submit annually verified emission reduction results. The company is committed to continuously refining climate targets and indicators to enhance resilience and drive industry transformation.
Progress Toward Emission Reduction Targets
The Company’s total emissions increased by 26,328.23 tons of CO₂e compared to 2023, representing a 16% rise. The main reason is the addition of a new electroplating production line in June 2024, which contributed an increase of 534.09 tons of CO₂e.
VPIC1
Item
2022
2023
2024
GHG Report
Verification Opinion Statement
2024 GHG Emission
Item
Unit
2022
2023
2024
Scope1
T-CO2e
10,769.62
9,530.80
8,513.39
Scope2
T-CO2e
38,306.46
28,000.49
27,643.48
Scope3
T-CO2e
173,506.29
124,996.74
152,699.39
Total
T-CO2e
222,582.36
162,528.03
188,856.26
Product Design Optimization Action Plans
Before DFM
After DFM
For the customer’s part number 5273904, with an annual production volume of 9,325 pcs, 6 sets of molds (approximately 29 tons) are required. It uses 6 sets of 600-ton stamping equipment, consuming 651 kWh per hour, totaling 58,590 kWh per year. The electricity consumption results in 42.31 tons of CO2e per year. The mold manufacturing process generates 71,749 tons of CO2e.
For the customer’s part number 5273904, with an annual production volume of 9,325 pcs, 4 sets of molds (approximately 20 tons) are now required. It uses 4 sets of 600-ton stamping equipment, consuming 343 kWh per hour, totaling 39,060 kWh per year. The electricity consumption results in 28.2 tons of CO2e per year. The mold manufacturing process generates 49,566 tons of CO2e. In total, the improvements reduce carbon emissions by 22,197.11 tons of CO2e.
Before DFM
After DFM
The part has many different radii in the curved corners, with an annual production volume of 396,000 pcs, requiring a total of 4 sets of molds (weighing approximately 0.4 tons). It uses 4 sets of 6CNC-38 equipment, consuming 65.8 kWh per hour, totaling 164,236.8 kWh per year. This results in an electricity consumption of 118.6 tons of CO2e per year, with the mold manufacturing process generating 0.98 tons of CO2e per year.
The part has a uniform radius size of R31.75, with an annual production volume of 396,000 pcs. It now requires a total of 2 sets of molds (weighing approximately 0.2 tons). The production uses 2 sets of 6CNC-38 equipment, consuming 32.9 kWh per hour, totaling 82,118.4 kWh per year. This results in an electricity consumption of 59.3 tons of CO2e per year, with the mold manufacturing process generating 0.49 tons of CO2e. The total reduction in CO2e is 59.79 tons.
Before DFM
After DFM
The part 50101-HR3-A200-H1 originally required six processing steps (Material Receiving → Warehousing → Part Cutting → Bending → Laser Cutting → Punching Arc R Corner). With an annual production volume of 20,700 pcs, the total carbon emissions for the six steps amount to 5.52 tons of CO2e per year.
The part 50101-HR3-A200-H1 now requires only five processing steps (Material Receiving → Warehousing → Laser Cutting → Bending → Punching Arc R Corner). With an annual production volume of 20,700 pcs, the total carbon emissions for the five steps are reduced to 5.16 tons of CO2e per year, achieving a reduction of 0.36 tons of CO2e annually.
Before DFM
After DFM
The part 850610-1411 is made of AL A6063S, a material with poor mechanical strength. With an annual production volume of 10,200 units, and each requiring 11 components for assembly, 9,350 parts need to be produced per month to meet assembly needs. The laser machine consumes 10.8 kWh per hour, totaling 1,944 kWh annually, which results in 1.41 tons of CO₂e emissions per year from electricity consumption.
After changing the material of part 850610-1411 to STKM11A, the annual production remains at 10,200 units, with each unit now requiring only 7 components for assembly. As a result, 5,950 parts need to be produced per month. The laser machine consumes 10.8 kWh per hour, totaling 1,244 kWh annually, which results in 0.91 tons of CO₂e emissions per year. This change achieves a reduction of 0.5 tons of CO₂e annually.
Process Optimization Action Plan
Before DFM
After DFM
For the production of parts 1263463-8 and 1263463-9, with an annual output of 300 pieces, a total of two machines are required. The annual electricity consumption is 3,906 kWh, resulting in 2.8 tons of CO₂e emissions per year.
In order to reduce power consumption without impacting the environment, the development team improved the process to save both manpower and electricity. For the production of parts 1263463-8 and 1263463-9, with an annual output of 300 pieces, only one machine is now required. The annual electricity consumption has been reduced to 1,953 kWh, achieving a total reduction of 1.4 tons of CO₂e per year.
Before DFM
After DFM
The part 50157-HS0-000-H1 has an annual production volume of 20,700 pieces and requires two punching machines (110 tons), consuming 489.6 kWh per year and generating 0.354 tons of CO₂e annually.
After improvement, the production of part 50157-HS0-000-H1, with an annual output of 20,700 pieces, now requires only one punching machine, consuming 360 kWh per year and generating 0.26 tons of CO₂e annually — achieving a total reduction of 0.094 tons of CO₂e per year.
Before DFM
After DFM
The parts 69203274-01 and 61301385-01 both use single-operation dies. With an annual production volume of 20,000 pieces, and due to the small mold size, two 600-ton punching machines are required. Production consumes 217 kWh per hour, totaling 39,060 kWh per year, resulting in 28.20 tons of CO₂e emissions annually.
The parts 69203274-01 and 61301385-011 were combined into a single production process using two single-operation dies to improve efficiency. Now, only one 600-ton punching machine is required. Production consumes 108.5 kWh per hour, totaling 19,530 kWh per year, resulting in 14.10 tons of CO₂e emissions annually — achieving a total reduction of 14.1 tons of CO₂e per year.
