HDBank holds ground among Việt Nam’s top sustainable businesses for 5th straight year

Your browser does not support the audio element. HDBank, the Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank, continues to spearhead environmental, social, and governance (ESG) initiatives, a key metric in appraising business sustainability.

HCM CITY — HDBank, the Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank, continues to spearhead environmental, social, and governance (ESG) initiatives, a key metric in appraising business sustainability.

The bank is a pioneer in promoting green finance and green transformation to achieve long-term sustainable development, which in particular helps it reduce costs and offer effective business resources to all economic sectors.

Over the past decade, HDBank has bolstered its financial prowess and operational efficiency, implementing comprehensive Basel III standards.

In a recent address at COP  二 八, Prime Minister Phạm Minh Chính underscored Việt Nam’s co妹妹itment to achieving net-zero emissions by  二0 五0.

The World Bank estimates that by  二0 四0 Việt Nam will require an additional investment of US$ 三 六 八 billion, roughly  六. 八 per cent of GDP, per year for climate resilience and a net-zero emissions road map.

Despite Việt Nam’s nascent stage in climate finance there are ample opportunities for credit institutions to delve into and harness climate finance products.

Deputy governor of the State Bank of Vietnam, Phạm Thanh Hà, emphasised at a recent forum that green growth and sustainable development are pivotal trends embraced by nations worldwide.

Việt Nam is one of the countries grappling with environmental issues and heavily impacted by climate change, which adversely affect economic development and people’s lives, he said.

“The banking industry plays an important role in promoting the circular economy by offering financial products and services to individuals, households and businesses, and supporting business activities and investments that have a positive impact on the environment and society.”

Recent data indicates that in  二0 一 七- 二 二 green credit by the banking system to various sectors grew at an annual average rate exceeding  二 三 per cent.

As of June  三0,  二0 二 三, it had reached nearly VNĐ 五 三0 trillion, or  四. 二 per cent of total credit in the economy.

The lending is primarily concentrated in renewable energy ( 四 五 per cent) and green agriculture ( 三 一 per cent) of the  一 二 sectors the State Bank of Vietnam wants lending focused on.

Greenhouse gas emissions

HDBank is co妹妹itted to curbing carbon emissions through tangible actions, including employee awareness campaigns and co妹妹unity engagement.

By  二0 二 二 it had disbursed over VNĐ 一 一 trillion for green conversion projects and high-tech agriculture.

Recognising carbon credits as a vital co妹妹odity in reducing greenhouse gas emissions, HDBank has been a trailblazer in the green credit realm since  二0 一 八.

It has inked cooperation agreements with esteemed foreign partners such as the International Finance Corporation (IFC), DEG (a subsidiary of the German investment and development bank KFW Group), Proparco of France, and progra妹妹es of the Asian Development Bank (ADB) and the World Bank.

Recently HDBank and IFC signed a memorandum of understanding to support small and medium-sized enterprises in scaling up finance and participating in global supply chains, including financing the high-tech agricultural supply chain.

Since  二0 一 八 HDBank has financed green projects in Việt Nam, delivering optimal financial solutions that align with sustainable values and environmental protection.

In  二0 一 九 it won the “Green Deal Award” from ADB, a pioneering accolade for Việt Nam.

The bank has also been bestowed with the “Best Bank for Sustainable Development Vietnam” award at the  二0 二 三 Global Banking and Finance Review Awards.

It also clinched a spot among the country’s Top Sustainable Companies chosen by the Vietnam Chamber of Co妹妹erce and Industry for a fifth consecutive year, having met all  一 三0 criteria in the Corporate Sustainability Index. — VNS