SHB and the ESG journey: creating social value in every step

Sustainable development is a global imperative, driven by commitments at COP26 and reinforced at COP28. Vietnam has positioned itself as a pioneer in pursuing net-zero emissions, energy transition, methane reduction, forest preservation, and climate resilience under the Paris Agreement. This makes sustainability a critical evaluation criterion for financial institutions and a decisive factor in international investment decisions.

With a long-term vision, SHB provides comprehensive financial solutions, supporting customers and communities to achieve sustainable development goals while effectively managing environmental and social risks. As a key funding channel for the economy, SHB prioritises loans to green and environmentally friendly industries, businesses, and projects.

Currently, SHB’s green loans account for nearly 10 per cent of its total loan portfolio. The bank also adopts transparent and responsible governance practices, ensuring sustainability across all operations.

The "S" in ESG—Social–guides SHB's efforts to deliver positive value to communities and customers. SHB views ESG as a long-term strategy and a commitment to Vietnam’s prosperity. Its initiatives aim to foster a sustainable community, support businesses and individuals, and enhance social security.

Sustainable, inclusive and harmonious economic development

SHB prioritises loans in critical sectors driving Vietnam’s economic development, such as agriculture, supporting industries, exports, small and medium enterprises (SMEs), renewable energy, social housing, and infrastructure. To support these sectors, SHB continually innovates its products and simplifies loan procedures with digital solutions, enabling better access to funding for businesses and individuals.

The bank has also actively supported government policies, particularly during challenging periods like the COVID-19 pandemic. It launched programmes with preferential interest rates, adjusted loan terms, and offered financial advisory services. Most recently, SHB introduced a credit package with a fixed preferential interest rate of 4.5 per cent per year to help businesses and individuals recover after Typhoon Yagi.

SHB has also focused on SMEs and women-led businesses, offering tailored credit programmes with interest rates as low as 4 per cent. As part of the ADB-funded "COVID-19 Relief for Women-led SMEs" project, SHB disbursed $1.7 million in grants to support recovery efforts.

Since 2003, SHB has spearheaded internationally funded projects in green credit and sustainable development. These include programmes like Rural Finance, Renewable Energy Development, and Sustainable Agricultural Transformation, supported by institutions such as the World Bank (WB), Japan International Cooperation Agency (JICA), and the Asian Development Bank (ADB).

Notably, SHB was selected as the Risk Sharing Fund Manager for the Vietnam Scaling up Energy Efficiency Project (VSUEE), funded by the Green Climate Fund (GCF) through the WB, with a total value of $86.3 million. This highlights SHB’s expertise and reputation in managing green finance and driving sustainability in Vietnam.

Accompanying national policies and social security activities

SHB consistently contributes to national social security initiatives, such as building homes for underprivileged families and infrastructure development in remote areas. Recently, the bank contributed VND100 billion ($4 million) to the government’s programme for eradicating temporary and dilapidated housing for poor households.

In disaster-affected regions, SHB actively supports recovery efforts, providing both material and emotional assistance to communities. The bank also invests in education, sponsoring schools, scholarships, and cultural and sports programmes, such as funding young football talent in Vietnam.

SHB fosters a modern and equitable work environment for its 12,000 employees, over 60 per cent of whom are women. Women also comprise nearly 50 per cent of SHB’s management team, reflecting the bank’s commitment to gender equality.

The bank invests heavily in training and development, providing 370,000 hours of training annually, averaging 70 hours per employee. SHB’s efforts have earned recognition, including the “Best Workplace in Asia” and “Bank for People” awards.

SHB is committed to reducing its environmental footprint through measures like using renewable energy, digitising processes, and minimising waste. The bank promotes a "Green Living" culture among employees, encouraging eco-friendly habits and the use of sustainable materials. These efforts position SHB as a leading advocate for sustainability in Vietnam’s banking sector.

With a vision rooted in “Heart, Trust, Faith, Knowledge, Intelligence, and Vision,” SHB remains steadfast in its mission to support Vietnam’s transition to a green, sustainable economy. Its initiatives reflect a commitment to social justice and environmental stewardship, ensuring prosperity for communities and businesses alike.

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