Contribution towards SDGs through JCM Model Projects(JFE Engineering Corporation) *Updated 2024/6/24

Selected Year: 2021
Host Country: Vietnam
Project Title: Waste to Energy Project in Bac Ninh Province    
Representative Participant: JFE Engineering Corporation
Partner Participant: T&J Green Energy Company Limited
(Project Information URL)https://gec.jp/jcm/projects/21pro_vnm_01/

Project Overview:

The first waste-to-energy facility jointly funded by Japanese and Vietnamese companies.

The project involves the introduction of a large-scale waste-to-energy facility in Bac Ninh Province, Vietnam, with a processing capacity of 500 tons per day and a power generation output of 11.6 MW. The facility will be managed and operated by T&J Green Energy Company Limited (‘T&J’), a joint venture (SPC: Special Purpose Company) established by JFE Engineering Corporation (‘JFE’) and Thuan Thanh Environment Joint Stock Company (‘TT’), the largest waste management company in the north of the country.
The new facility will incinerate 230 tons per day of general waste generated and disposed of as landfill in the area, as well as 120 tons per day of general waste and 150 tons per day of industrial waste currently incinerated at other facilities to generate electricity. The project contributes to the proper disposal of waste in Vietnam and enables power generation without the use of fossil fuels, thereby reducing methane emissions at landfill sites and reducing greenhouse gases by replacing fossil fuel-derived electricity with renewable energy. The construction of the plant started in 2022 and the plant will be operational in the first quarter of 2024.

【Motivation and background behind the contribution towards SDGs】
As a local company in Vietnam, T&J is committed not only to addressing climate change and taking environmental pollution prevention measures through this project, but also to contributing to the local community. Since the start of the project, the company has been actively building relationships with the neighboring communities and conducting a wide range of activities, including sustainable community development. Based on a survey by a consulting company, the number of neighboring households expected to be affected by the project has been identified as 111, and T&J’s community activities are directed at these households.

【Community Activities】
In addition to the initiatives that T&J has voluntarily undertaken as part of its corporate social responsibility and in line with the importance it places on relations with the residents living near the project location, these initiatives have been enhanced at the request of local authorities and the International Finance Corporation (IFC), which provides financing to T&J. Taking into account Vietnamese culture and customs, T&J’s Vietnamese staff take the lead in community-based activities.

(i) Introduction of Community Grievance Redress Mechanism: Grievance boxes have been set up in a total of seven locations in six villages in neighboring areas and at the project site, which are directly and easily accessible to residents. To date, there have been zero complaints received. Grievances and complaints can also be communicated by phone and on the website at any time.
(ii) Building relationships through communication with the residents of the six neighboring villages affected by the project and the local authorities in the area. T&J staff visit the local residents to explain the project and listen to their opinions, comments and also, their complaints or grievances, if any. Similarly, the project is also explained and reported to the local authorities.
(iii) As community development, T&J have made donations to support the vulnerable communities (poor and elderly) and local communities at some special events such as on Vietnamese Women’s Day (celebrated on 20 October in Vietnam) and at traditional festivals. T&J has also prioritized employment from the neighboring communities. Activities currently under consideration include offering scholarship to children from unprivileged families (tuition support) and installation of street lighting in the surrounding area as a safety measure at night.

【Benefits gained through T&J‘s SDGs initiatives】

As mentioned above, no grievances have been received from neighbors to date, and T&J has established good relations with the neighboring communities so that any problems can be dealt with immediately if they arise. Building relationships with local communities is essential when conducting business. In this respect, the Vietnamese staff in charge of local initiatives at T&J are highly trusted by their neighbors and are recognized as members of the community. Seeing the positive outcome of T&J’s initiatives in Vietnam leading to the development of local communities and the improvement of residents’ lives is expected to motivate shareholders to reinforce its SDGs initiatives in the future. Creation of employment opportunities is particularly a meaningful initiative in the context of sustainable development, with two of T&J’s seven staff members are from the surrounding communities and more positions are planned to be created for local employment when the facility is operational.

Follow-up Interview *Updated 2024/6/24

On February 16, 2024, we conduct a follow-up interview with Ms. Nguyen Thi Loan, the HR & Admin Manager of T&J Green Energy Company Limited (hereinafter referred to as “T&J”), who explained to us about their efforts to contribute towards SDGs last year. In this follow-up interview, she told us about the progress of community activities.
The summary of the follow-up interview is as follows:

The waste-to-energy facility of this project has been fully installed in March 2024.
T&J has identified 111 households that are expected to be affected by this project (hereinafter referred to as Affected Households, “AHs”). They conducted a survey targeting these households to understand the needs of the residents in the neighboring communities and formulated an activity plan based on the survey results.
Continuing from the last interview, grievance boxes installed at seven locations are checked weekly by staff. So far, no complaints have been received. Additionally, T&J places importance on dialogue with neighborhood residents and the local authorities. Besides explaining the project to the local authorities, an information session was held about their waste-to-energy project at a convention center, inviting residents from the local communities. The Japanese plant manager of the waste-to-energy facility also attended the session and responded face-to-face to concerns raised by residents, such as air pollution from dust, and technical questions about waste-to-energy, thereby continuing to build trust.
T&J also continues support activities for vulnerable AHs, with the following achievements highlighted in this interview: 

– Scholarships (one-time payments) were awarded to 10 particularly financially vulnerable AHs, and bicycles and stationery were donated to 5 AHs with elementary and secondary children.
– Gifts were given to elderly households and children among the AHs during the Lunar New Year period.
– As a new initiative, vocational training has been conducted. Seventeen vulnerable AHs were trained in making votive paper (paper offerings for the Vietnamese Lunar New Year). Votive paper can be sold, while it is inexpensive, it can make a small contribution to household income.

In addition, the waste-to-energy facility places high priority on employment from neighboring communities.  At the time of the last interview, 2 of the 7 Vietnamese employees were locally hired, but as of mid-February, 30 of the 48 Vietnamese employees were locally hired, an increase of 28, which also contributes to creating and promoting employment opportunities in the communities.
T&J will continue to be considerate of its social contribution activities.

  
T&J Staff communicating with local residents

     

T&J’s gift donation events at local villages for the Vietnamese Lunar New Year and Women’s Day

 
Handing over bicycles                 Vocational training