( HCMC ) – After receiving technical support from the International Finance Corporation (IFC) , ACB officially announced the Sustainable Finance Framework. The Sustainable Finance Framework is considered a system of tools applied in practical business operations, in line with the Bank's sustainable development strategy. ACB's Sustainable Finance Framework also meets the orientation on Green Credit from the State Bank.
The Sustainable Finance Framework is a framework for credit activities completed by ACB in accordance with the Green Bond Principles and Social Bond Principles established by the International Capital Market Association (ICMA) and the Green/Social Lending Principles established by the Loan Market Association (LMA) as well as in accordance with the Bank's internal procedures. ACB is one of the first banks in Vietnam to develop and publish a Sustainable Finance Framework.
The issuance of the Sustainable Finance Framework demonstrates ACB's key objective in its business strategy, developing new opportunities in the emerging green finance sector in Vietnam such as renewable energy, green transportation, green buildings, etc. This will help ACB and its businesses and partners contribute and balance between Economic and Environmental - Social factors as well as limit environmental and social risks, together moving towards green growth of the economy.
ACB’s Sustainable Finance Framework is built on four specific principles: (1) Purpose of capital use; (2) Process for assessing and selecting sustainable projects for financing or refinancing; (3) Management of mobilized capital; and (4) Reporting, including allocation reporting and impact reporting. Adherence to these key principles will help establish baseline standards for ACB to issue sustainable bonds/loans, while also helping to promote the bank’s business through responsible and sustainable financial activities. The Sustainable Finance Framework will be implemented in conjunction with ACB’s Environmental and Social (E&S) Risk Assessment Policy.
ACB's Sustainable Finance Framework has received a Second Party Opinion (SPO) from Moody's on the authenticity of the Framework's principles, as well as its impact on Environmental and Social issues. In addition, Moody's also rated ACB's overall Sustainability Quality Score (SQS) at SQS3 (Good) and commented that ACB has strong ESG risk management capabilities.
In recent times, under the guidance of the State Bank of Vietnam (SBV), ACB has actively launched activities in line with the banking industry's action plan under the national strategy on green growth for the period 2021-2030. Furthermore, the bank's efforts are in line with the 17 Sustainable Development Goals (SDGs) of the United Nations, demonstrating ACB's comprehensive and principled approach to promoting long-term development while protecting the community's living environment.
In early 2024, ACB proactively provided a VND2,000 billion credit package from the bank's capital to businesses in the Green/Social category with the aim of financing business capital needs to accompany business growth. By the end of August 2024, ACB had disbursed 86% of the capital of the Green/Social credit package. Mr. Ngo Tan Long - Deputy General Director of ACB - said: "We are ready to accompany businesses in shifting towards sustainable development. In the long term, we will promote green capital according to ACB's ESG strategy".
On the pioneering journey of implementing sustainable development according to the pillars of Environment - Society and Governance (ESG), ACB continuously launched practical activities to pursue the ambition that ACB's model will be the foundation to encourage stakeholders to practice ESG, replicating this model to more individuals and organizations in Vietnam. On August 2, ACB was named for the third consecutive time in the Top 50 sustainable development enterprises in Vietnam - Top 50 Corporate Sustainability Awards (CSA), in both the categories of Outstanding CSR Activities (Social criteria) and Excellent Corporate Governance (Governance criteria).
Organizations, businesses, investors and customers can refer to the ACB Sustainable Finance Framework on the website: https://acb.com.vn/nha-dau-tu
Source: https://acb.com.vn/ve-chung-toi/cong-bo-khung-tai-chinh-ben-vung-acb-tiep-tuc-hanh-trinh-tien-phong-thuc-hien-esg
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