Bamboo Capital signs partnership deal with STACS

The signing ceremony was attended by representatives from EuroCham, AmCham, SingCham, as well as several other major domestic and international financial institutions.

Under the agreement, Bamboo Capital (HSX: BCG) will be the first Vietnamese company to utilise the ESGpedia digital platform developed by STACS, streamlining their ESG reporting needs.

This marks a critical step for Bamboo Capital as it promotes transparency on carbon-emission data in Vietnam, laying the groundwork for the establishment of the Renewable Energy Certificate (REC) market, a future innovation in the nation's energy sector.

The initial step for sustainable progression is for companies to be aware of the amount of carbon emissions they generate. The ESGpedia platform integrates data, analytic, and evaluation tools to help companies understand their emission data and devise a 'green' strategy.

Featuring over five million sustainable data points, ESGpedia already provides intricate solutions and insight to Asia’s top banks and businesses. It also acts as a pivotal digital platform, contributing ESG global data to reputable schemes, including the Asia-Pacific Green Deal by the ESCAP’s Sustainable Business Network and the ASEAN Single Accesspoint for ESG Data initiated by the Asian Institute for Sustainable Finance.

International markets like the United States, Europe, Japan, and South Korea are setting stricter ESG standards amid concerns over the impact of climate change and dwindling resources. Regulations on carbon emission, sustainable production models, environmental protection, and recycling have become crucial factors in winning contracts, as businesses with elevated ESG scores are poised to receive more orders.

Approximately 785,000 small- and medium-sized enterprises (SMEs) in Vietnam export to international markets and are now confronted with the urgent necessity to adapt to a greener business model or face potential market exclusion. This urgency heightened after Vietnam's assertive net-zero-by-2050 pledge at the COP26 conference.

Bamboo Capital is pioneering the integration of STACS' ESGpedia platform to support Vietnamese companies as they try to achieve their emission-reduction objectives. This collaboration between Bamboo Capital and STACS is poised to significantly increase transparency in the ASEAN REC market.

Renewable energy businesses will have an added passive income from selling RECs as renewable energy plants will be issued a REC for every MWh of electricity produced. Buying RECs will allow companies to offset their carbon emission quotas and increase the likelihood of meeting their international partners’ requirements without directly using energy from renewable sources.

Although RECs are to play an integral role in Asia’s green transition and net-zero ambitions, ensuring REC origin traceability and avoiding double trading present significant challenges. Through this partnership, Bamboo Capital will utilise ESGpedia to meticulously record generated REC data and REC transactions with partners, allowing businesses entering the REC market to access transparent information for precise investment decisions.

Speaking at the signing ceremony, Tan Bo Quan, director of Strategic Planning at Bamboo Capital, said, “The demands of ESG and sustainable growth are of paramount importance for Vietnam, particularly considering the country's increasingly pivotal role in the global supply chain. We are thrilled to collaborate with STACS on the ESGpedia application to help Vietnamese businesses carve out their own sustainable development path.”

Benjamin Soh, founder and CEO of STACS, said, “Through our partnership with Bamboo Capital Group, we aim to deliver refined digital solutions to firms in Vietnam and the wider region. This will help companies manage their emissions and begin their transition to clean energy.”

This landmark partnership promises to lead Vietnam closer to its sustainable development goals, shaping the future of the country's businesses and environment.

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