DNVN - Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that while large corporations have large resources and good governance, many business leaders still do not understand ESG (Environment - Society - Governance).
Speaking at the workshop “ESG in the banking industry: Implementing to lead” on November 19, Permanent Deputy Governor of the State Bank Dao Minh Tu said that in recent times, the banking industry has been a pioneer in applying ESG standards.
The State Bank has had many solutions, orientations, instructions and directions related to ESG content in banking activities such as: issuing a Directive on promoting green credit and managing environmental risks in credit granting activities; approving the Project on developing Green Banking in Vietnam, the Action Plan of the banking industry to implement the National Strategy on Green Growth for the period 2021-2030.
Along with that, the Action Plan for implementing the National Financial Inclusion Strategy to 2025, with a vision to 2030, was approved; Circular 17/2022/TT-NHNN dated December 23, 2022 on environmental risk management in credit granting activities was issued.
Permanent Deputy Governor of the State Bank Dao Minh Tu spoke at the workshop.
“The solutions implemented very early above have shown the responsibility of the banking industry in practicing ESG. The results of implementing ESG activities are clearly shown through the growth rate and the proportion of outstanding loans assessed for environmental and social risks of the banking industry. Credit flows have grown faster in the field of ESG practice,” said Mr. Tu.
According to Mr. Tu, ESG practices in banking activities as well as business activities are increasingly urgent. However, besides the opportunities and advantages in implementation, there are still many challenges for both State management agencies and the implementing units themselves, requiring all parties to be aware and act quickly.
“ESG implementation is not a small issue for businesses. While large corporations have large resources and good governance, many business leaders still do not understand ESG. In ESG implementation, all participants must operate to create a value chain to act together,” Mr. Tu emphasized.
In the coming time, the State Bank will issue documents related to the classification of green project portfolios, thereby shaping capital flows into this sector. Next is to implement solutions to contribute to promoting ESG practices in Vietnam towards the goal of green growth and sustainable development.
Hoai Anh
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/nhieu-lanh-dao-doanh-nghiep-van-chua-hieu-ve-esg/20241119010618130
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