LPBank: Announcement of Sustainable Development Report 2023

LPBank officially released the 2023 Sustainable Development Report (ESG), with specific commitments and practical actions to create breakthrough changes, create long-term values, and aim for sustainable, substantial, and effective development. The importance of ESG in enhancing corporate position In recent years, the phrase ESG (Environmental, Social, and Governance) has received increasing attention from the investor community, customers, and the public. Accordingly, ESG plays a guiding role in helping stakeholders understand how businesses manage risks and opportunities in these three aspects, aiming for sustainable growth and making positive contributions to the environment, society, and economy . Therefore, the issuance of an ESG report by a business is increasingly receiving the attention and support of investors, financial institutions, and stakeholders. Committing to implementing ESG standards according to international standards helps to enhance the brand, increase access to international capital sources and reduce operational risks. However, in reality, the implementation of ESG reporting has not really received much attention from Vietnamese enterprises. A recent survey by EY showed that less than 1/3 of Vietnamese companies have conducted ESG reporting thoroughly and comprehensively. For the banking and finance industry, which is a pioneer in ESG activities as well as early compliance with international standards, the number of banks publishing ESG Reports is still limited. Currently, LPBank is one of the few banks to issue the earliest ESG Report in 2023 in Vietnam. What is in LPBank's Sustainable Development Report? According to information from LPBank, this bank officially published the Sustainable Development Report (ESG Report) for 2023 on June 28, 2024. With the theme "Sustainability with the environment", the Report clearly shows LPBank's vision and strategy in implementing ESG, aiming for a bank with zero net emissions, promoting green finance, green transformation and sustainable development.

LPBank is one of the earliest banks to publish the 2023 Sustainable Development Report

The sustainable development indicators selected and presented by LPBank are based on the regulations, standards and guidelines of the Global Reporting Initiative (GRI), the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and compliance with Vietnamese law. According to the report, LPBank integrates environmental and social factors into its corporate structure through three sustainability pillars: Environment - Transition to a sustainable and carbon-neutral economy; Society - Building a prosperous society; Governance - Responsible action. Regarding environmental factors: LPBank promotes green credit policies and programs, increasing total outstanding loans from VND 2,565 billion in 2020 to VND 4,883 billion in 2023. This helps to increase access to financial services for customers, especially small and medium enterprises and small traders, prioritizing green agriculture , renewable energy and clean energy. Internally, LPBank actively implements a culture of saving on; gasoline, electricity, water, reducing emissions, plastic waste... In 2023, LPBank recorded positive results in a number of indicators such as; the amount of gasoline consumed from means of transport decreased from 328TJ (in 2022) to 272 TJ (in 2023), equivalent to a decrease of about 17%; the Bank's total domestic water consumption in 2023 decreased by 4% compared to 2022; the total amount of greenhouse gas emissions in 2023 was 32,976 tons of CO₂, a decrease of about 7% compared to 2022 of 35,633 tons of CO₂. Regarding social factors : LPBank always receives the consensus of more than 12,000 employees in implementing "Incorporating social responsibility in business", focusing on 5 main pillars:Education and Training - Health - Culture, Sports - Social security - Supporting poor localities to develop... LPBank also focuses on building an equal working environment, guaranteed salary, bonus and welfare policies. 100% of employees are protected by collective labor agreements. This is also one of the values ​​that contributes to building corporate culture and humanistic spirit for LPBank to become the Best Workplace in Asia. Regarding governance factors : LPBank always follows the principles of international governance standards including: transparency, responsibility, fairness and comprehensive risk management. LPBank builds a healthy corporate culture, encourages creativity and comprehensive development of individuals. The Bank has transformed its vertical banking model to manage and develop its business effectively and sustainably. LPBank focuses on training its staff on data security, upgrading its security system, safe data management, and measures to prevent and detect corruption. LPBank is committed to the sustainable development of the community and society. The Vietnamese Government has also implemented its international commitments on net zero emissions by 2050. Determining sustainable development is not only an inevitable trend but also an important factor in maintaining LPBank's achievements in the long term and sustainably in the future. The ESG report also shows LPBank's continuous efforts towards a carbon-neutral economy, while demonstrating the Bank's commitment to the sustainable development of the community and society. Mr. Ho Nam Tien - Vice Chairman of the Board of Directors, General Director of LPBank said: "LPBank wishes to join hands with Vietnam to transform to a zero-emission economy by 2050. In supporting this goal, the Bank identifies its role and responsibility in business operations, along with creating value for society, protecting the environment, contributing to the development of a green economy, building a sustainable future for the next generation". Through reporting with transparent and responsible indicators, LPBank will affirm with real numbers in enhancing trust with stakeholders, aiming towards the image and position of the leading retail bank in Vietnam, the Bank for everyone.

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