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| Agribank on the journey toward ESG and sustainable development |
Agribank is implementing many practical action programs to implement ESG synchronously and effectively from the Board of Directors to each employee, creating great momentum, contributing to protecting the environment, combating climate change, and towards sustainable development.
In the past few years, Vietnam has always proactively and actively implemented many activities according to international commitments and agreements to respond to climate change, towards sustainable development. In particular, at the 26th, 27th and 28th UN Climate Change Conferences, Vietnam reaffirmed its strong commitment to the net zero emissions target by 2050.
The State Bank of Vietnam (SBV) has issued many policies and directions to encourage credit institutions (CIs) to transform green and manage environmental risks in credit activities through: Promulgation of the Green Bank Development Project in Vietnam; orientation for green banking development in the Banking Industry Development Strategy to 2025, orientation to 2030. As of September 30, 2023, outstanding green loans reached more than VND 564 trillion, accounting for about 4.4% of total outstanding loans of the entire economy. In addition, sustainable development is becoming an inevitable trend in the business strategies of many banks around the world and has become a mandatory criterion in the ratings of international credit rating agencies.
In order to implement the guidelines, policies and orientations of the Government and the State Bank of Vietnam on green banking development as well as towards international standards on sustainable development, Agribank is implementing many practical action programs to implement ESG synchronously and effectively from the Board of Directors to each employee, creating great momentum, contributing to protecting the environment, combating climate change, towards sustainable development.
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| Agribank's staff talk with customers about ESG awareness and sustainable development |
Determining to implement ESG on all three pillars of Environment, Society and Governance, Agribank is implementing specific solutions for ESG implementation, including: the establishment of a Steering Committee and an ESG Implementation Support Team consisting of senior personnel and a professional team to conduct research and implement synchronous and effective ESG management practices in all aspects of Agribank's operations; integration of environmental and social risk management in Agribank's business activities and general risk management program as per roadmap; not granting new loans or restricting credit for projects, production, business and service plans belonging to industries and business lines in Agribank's list of industries and business lines excluded or limited in granting credit; strengthening communication, training, and education to spread the idea of sustainable development in the entire Agribank system from the Board of Directors to each employee, and actively communicating to customers about ESG awareness and sustainable development; promoting the implementation of financial inclusion, digital transformation, and sustainable product and service development; good implementation of gender equality work, activities of social security and for the community.
From the above specific steps, Agribank has achieved preliminary results in the journey of implementing ESG and towards sustainable development.- (VLLF)
