TH Group‘s Circular Economy Triumph: A Glimpse into the Future of Sustainable Business
The recent Asia Responsible Enterprise Awards (AREA) 2025 in Thailand shone a light on TH Group, the owner of the TH true MILK brand, awarding them for “Circular Economy Leadership.” But what does this recognition really signify, and what can we learn about the future of sustainable business from their remarkable approach?
TH Group wasn’t just recognized for its environmental efforts. The award specifically highlighted their pioneering, all-encompassing implementation of a circular economy model. This means not just internal production changes, but demonstrable, positive impacts on the community and wider society, showcasing practical experience and results achieved through years of dedicated sustainable development.
The Profound Depth of TH’s Circular Strategy
TH Group’s strategy is exceptionally deep, rooted in the specific realities of Vietnam, and skillfully integrating advanced technologies and smart localization. This approach is what truly sets them apart. Consider the scale: TH owns the world’s largest closed-loop, high-tech dairy production and processing cluster. This is a critical factor in achieving the kind of circularity that resonates with the AREA judges.
Did you know? The circular economy aims to minimize waste and pollution by keeping resources in use for as long as possible.
Groundbreaking Initiatives Driving Success
TH Group’s detailed reports to the organizing committee highlight their core philosophy of sustainable development, centered around “cherishing nature” as the bedrock of all operations. Since its founding in 2009, TH Group has firmly adhered to an integrated value chain model, “from farm to table.” Since 2016, this model has actively shifted towards circularity through regeneration, emissions reduction, and value enhancement.
Integrated Solutions at Scale
The TH Nghe An dairy farm, the world’s largest closed-loop, high-tech dairy production and processing cluster, exemplifies this holistic approach. It merges solutions: from livestock waste recycling to water reuse, energy conversion, resource regeneration, and community education.
For example, their waste treatment system uses advanced aerobic composting technology imported from the US to recycle over 28,000 tons of livestock manure annually, turning it into Greenma organic fertilizer. This fertilizer is then used on TH’s grasslands and crops, and also distributed to local farmers, completing the soil-grass-cow-manure-earth cycle.
Pro Tip: Evaluate your waste streams. Can any materials be repurposed or composted instead of being discarded? Consider the environmental benefits and potential cost savings.
Renewable Energy and Waste Reduction
TH Group’s investments in renewable energy are also notable. They generate over 8,300 MWh of solar power annually, avoiding more than 6,000 tons of carbon dioxide emissions. They also use biomass fuel (rice husks, sugarcane residue) instead of diesel in their boilers, reducing greenhouse gas emissions by up to 85%. Furthermore, wastewater from farms and factories is 100% treated to A-grade standards and reused internally for irrigation, cooling warehouses, and other purposes, conserving water resources and protecting the local ecosystem.
Another unique initiative involves collecting used milk cartons from TH true mart stores. By the end of 2023, approximately 2 tons of milk cartons had been recycled into construction materials, which TH used to build schools for underprivileged students. This not only reduces waste but also creates humanitarian value within the community.
What Does the Future Hold for Sustainable Business?
TH Group’s success offers a roadmap for the future of sustainable business. Their commitment to a closed-loop system provides a clear example of how businesses can achieve financial success while actively contributing to environmental and social well-being. Businesses globally are embracing circular economy principles to reduce their impact on the environment and bolster brand reputation. For example, companies like the Ellen MacArthur Foundation are helping many companies to embrace circular economy principles.
In April 2025, two key TH Group production companies, TH Milk Joint Stock Company and Nui Tien Pure Water Company Limited, were certified as carbon neutral according to PAS 2060:2014 standards. They were the first in Vietnam to be assessed and verified by the independent, reputable international certification body, Control Union. This commitment showcases the group’s leadership in implementing carbon reduction strategies.
The core of the TH circular economy initiative is its strategic and systematic execution. A company-wide Sustainable Development Committee was established to monitor and adjust the circular model implementation. Key Performance Indicators (KPIs) are integrated into the group’s metrics, measuring waste recycling, energy conservation, and CO₂ reduction, and influencing the evaluation of each employee’s performance. All employees receive extensive training on the circular economy, and sustainable development thinking is a core element of the corporate culture.
Leadership and Vision
Under the vision and leadership of Thai Huong, founder and chairwoman of TH Group’s Strategy Committee, the model has flourished. She is not only the creator of the inspiring “from pasture to a glass of milk” model but also the chief architect of a circular ecosystem, embodying the identity of “cherishing nature.”
This recognition, coupled with awards like the “2025 Global Outstanding Sustainability Leader” from Global Brands Magazine (UK), underscores the importance of a business approach that harmonizes economic, environmental, and social progress.
FAQ
Q: What is a circular economy?
A: A circular economy aims to minimize waste and pollution by keeping resources in use for as long as possible.
Q: How does TH Group implement the circular economy?
A: By using closed-loop production, renewable energy, waste recycling, and community outreach programs.
Q: What are the benefits of a circular economy for businesses?
A: Reduced environmental impact, improved brand reputation, and potential cost savings.
Q: What can other companies learn from TH Group?
A: To implement systemic changes, invest in renewable energy, and establish a strong culture focused on sustainability.
Q: What are the future trends related to circular economy?
A: Increasing focus on renewable energy, waste reduction, and comprehensive sustainability reporting.
Are you interested in exploring more about sustainable business practices? Share your thoughts in the comments below! What steps is your company taking to contribute to a more sustainable future? Explore other articles on our site to discover more about the companies leading the way towards a circular economy and subscribe to our newsletter to receive updates on the latest trends in sustainability!
