MB receives prestigious award for helping businesses access 'green credit'

11/28/2023 5:35 PM PV Print article

ANTD.VN - Recently, the Military Commercial Joint Stock Bank (MB) was honored with the "Board of Directors of the Year" award, marking an important turning point in the journey towards supporting businesses in accessing green credit capital, including from both greened and ungreened sectors.

Bà Vũ Thị Hải Phượng – Phó Chủ tịch HĐQT MB nhận giải thưởng tại sự kiện

Ms. Vu Thi Hai Phuong - Vice Chairwoman of MB Board of Directors received the award at the event.

In the context of the global move towards sustainable development, "green" has become an important strategic trend from agriculture to economy. The AF6 Annual Forum organized by VIOD is a leading event for entrepreneurs and business leaders to discuss and share experiences on this issue.

This year, with the theme: "Unleashing Green Finance and Green Governance", the 6th Annual Forum (AF6) has a new highlight: the Board of Directors of the Year (BOTY) Ceremony and the Best Board of Directors Award. MB has successfully surpassed more than 500 Boards of Directors of other listed companies in the Vietnamese market to win the award thanks to its strategic vision.

The "Board of Directors of the Year" award ceremony was successfully held and announced for the first time at the 6th Annual Corporate Governance Conference of VIOD today, November 22, 2023 in Hanoi. At the event, MB representative - CEO Pham Nhu Anh shared in-depth information on how businesses can access green credit from green and non-green sectors.

CEO MB chia sẻ về cách thức doanh nghiệp có thể tiếp cận tín dụng xanh từ các lĩnh vực xanh và chưa xanh

MB CEO shares how businesses can access green credit from green and non-green sectors

Pioneer in green financial development

Responding to Decision No. 1604/QD-NHNN dated August 7, 2018 approving the project on developing green banking in Vietnam of the Vietnamese Government, MB has implemented the "Key Action Program 2023" with specific and comprehensive goals. In the discussion, CEO Pham Nhu Anh of MB detailed the parts of the environmental risk management framework and MB's green credit criteria for industries such as Green Energy, Green Agriculture and Forestry, Green Industry. For example, to access green credit, businesses can commit to measuring emissions, technology to reduce emissions by up to 20% or businesses currently have emissions 20% less than the market...

A notable point in MB’s strategy is that 90% of funding is directed towards renewable and clean energy projects. In the coming time, MB aims to expand its support for businesses in the industrial sector, especially those in the process of “green transformation”. This includes funding projects to reduce energy and increase capacity, in an effort to support the transition of the Vietnamese economy to a more environmentally friendly direction.

In response to some businesses' concerns about the current difficult market and the challenges they themselves face, this is not the right time for green transformation, CEO Pham Nhu Anh shared: "A difficult market is the most suitable time for businesses to turn inward, change their structure and processes, focus on transformation, to catch up with the trend and this trend is inevitable in the long term". In addition, he also added that green transformation is a mandatory trend because consumers are increasingly inclined to consume green products, if businesses do not keep up with the needs of users, they will lose their competitive advantage.

The number of businesses following the green trend is also increasing. According to MB's financial report, the proportion of green debt from 2020 to 2023 has increased by 3.8 times, a significant step forward in supporting sustainable development. By September 30, 2023, MB's green debt balance reached VND 55 trillion, with 3,759 customers, accounting for 11% of the bank's total outstanding debt. Notably, the bad debt ratio was only 0.8%, an impressive figure compared to the safe level of 3%. These figures not only reflect MB's success in implementing its green finance strategy but also demonstrate that investing in sustainable areas can bring significant economic benefits.

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In addition to sharing about the process and implementation methods, MB's representative also made some wishes so that banking enterprises can easily access green credit sources such as: The State Bank of Vietnam (SBV) and management agencies strive to complete the legal framework, accelerate the issuance of guidelines for green banking development, including "green classification criteria". The goal is to facilitate credit institutions to apply international standards in lending to green projects, while ensuring compliance with best practices.

The State Bank of Vietnam may consider expanding the annual credit room, with additional criteria on credit growth rates for banks with a high proportion in the green credit sector. This is to encourage banks to shift their credit portfolio structure to green and sustainable credit.

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