Pioneering digital transformation, OCB is in the top sustainable development enterprises in 2024

The TOP 50 Outstanding Sustainable Development Enterprises 2024 Award has just been announced. Orient Commercial Bank (OCB) was named in the “ESG Leadership” category for its determination to implement and realize its sustainable development strategy to become a pioneer green bank in Vietnam.

OCB representative received the Sustainable Development Enterprise Award 2024

Green banking activities have been laid down by OCB very early, the environmental and social risk management policy with the advice of IFC was issued in 2012, since then the bank has included this content in appraisal and review activities before granting credit to customers. In addition to actively promoting the development of digital banking products and services, the bank's internal management activities have also been adjusted to be more environmentally friendly through the use of energy-saving equipment, prioritizing online, digitizing most processes... to minimize work related to paperwork, stationery and energy consumption. In April 2024, OCB and the International Finance Corporation (IFC) officially signed an agreement to consult on green banking transformation and digital banking services for retail and SME businesses, aiming at the goal of sustainable and effective development for banks, customers and society. Accordingly, IFC will support OCB in its green transformation journey, while enhancing its digital banking capabilities for SMEs and retail businesses. This will not only promote climate finance but also open up access to capital for SMEs, especially women-owned businesses.

Pioneering digital transformation, a solid foundation for sustainable development strategy at OCB

The strategic cooperation between the bank and IFC is seen as a strong affirmation of OCB's commitment to effectively pursuing a sustainable development strategy, building overall strategic goals based on three pillars: environment, society and governance (ESG) to adjust all OCB products brought to the market, while improving standards in governance and internal management in the bank. 2024 is considered a pivotal year of special importance in implementing OCB's long-term goals. From that perspective, in addition to planning specific business strategies, OCB also plans to implement a sustainable development strategy, with the vision of becoming a pioneer Green Bank in Vietnam . Therefore, OCB has identified long-term goals for this transformation journey with the mission of sustainable development for a greener, better future, shared a representative of OCB's leadership. With the steadfastness in the strategy of effectively pursuing a sustainable development strategy, aiming to become a pioneer green bank in Vietnam, the scale of green credit at OCB is on an increasing trend and reaching an average proportion of 8-10% of the total outstanding credit balance of the whole bank. Meanwhile, by June 30, 2023, the outstanding green credit balance in Vietnam reached nearly VND 528,300 billion, accounting for about 4.2% of the total outstanding balance of the whole economy. It is known that after signing a cooperation agreement with the International Finance Corporation (IFC), OCB will continuously improve the Green Academy training programs based on advice from the IFC team, in order to enhance green culture and green banking capacity in project appraisal and assessment of environmental and social risks. In parallel, designing green products, green credit programs for potential customer segments, and with the support of international financial institutions such as IFC, DEG... OCB has expanded its loan portfolio for sustainable development projects in many eligible social and climate fields. Preferential policies and green credit products will also be widely introduced by OCB to customers and announced in the media. “When pursuing a sustainable development strategy, this will help OCB easily access international capital sources from financial institutions and investors interested in sustainable projects. However, there will also be challenges such as: high initial investment costs, employee training activities, changes in processes and organizational structures to comply with sustainable standards must also be organized regularly, the legal framework and green criteria in Vietnam also need time to complete... However, OCB is steadfast in its set goals. Receiving the TOP 50 Outstanding Sustainable Development Enterprises 2024 Award in the category of "ESG Leadership" is truly a strong motivation for us to constantly strive on the journey to become a pioneering green bank in Vietnam", added the OCB leader.

Top 50 Outstanding Sustainable Development Enterprises 2024.

TOP 50 Sustainable Development Enterprises is an annual award initiated by Nhip Cau Dau Tu magazine to contribute to promoting the trend of sustainable development to spread widely in the business community and Vietnamese society, while recognizing and honoring enterprises that have contributed to sustainable development, environmental friendliness and social justice. The award also contributes to raising awareness and inspiring sustainable development and environmental protection for the community. Recently, OCB was also honored in the ranking, PRIVATE 100, reaching the Top 11 Banks contributing the most to the budget in 2023. Specifically, last year OCB paid 1,101 billion VND to the State budget (including taxes and fees). OCB is also a bank that has been in the TOP of high tax-paying enterprises for many consecutive years. Accordingly, in 2023, OCB held the 28th position (up 2 ranks compared to the previous year) in terms of tax payment. These activities clearly demonstrate OCB's business principles in compliance with Vietnamese laws, especially regulations on taxes and fees. That is also the guiding principle in all activities of the bank for the goal of effective, stable, sustainable and transparent growth. Source: https://www.ocb.com.vn/vi/tin-tuc-su-kien/tin-tuc/tien-phong-chuyen-doi-so-ocb-lot-top-doanh-nghiep-phat-trien-ben-vung-2024