VIR hosts 'ESG in Banking: Leading Through Implementation' conference

The conference was organised by VIR under the auspice of the State Bank of Vietnam and the Ministry of Planning and Investment.

Addressing the conference, Le Trong Minh, VIR's editor-in-chief said that climate finance remains the largest concern for countries around the world, including Vietnam. Green finance plays an increasingly important role in Vietnam. As the main source of capital supply to the economy, the banking industry can pioneer in promoting comprehensive efforts towards sustainable development.

"The banking industry can integrate ESG (environmental, social, and governance) criteria into the operation strategy, thereby contributing to “greening” banking activities. This can meet the capital demand for green and environmentally friendly projects while raising the awareness about environmental stewardship among businesses receiving funding from banks. Banks can give priority to businesses in compliance with ESG standards while limiting credit to activities that are harmful to the environment and society. Banks play a vital role in the chain of ESG actions," Minh added.

"ESG has become a major trend in the world and is no longer strange. Many countries and international organisations have issued ESG policies, including the banking sector," Minh said.

"However, Vietnam is at the early stages in adopting ESG among credit activities with many challenges. The government and business community have paid more attention to policies to mobilise capital for green transition and sustainable development. The State Bank of Vietnam has basically completed regulations about green banks in line with green growth and sustainable development."

According to a survey by PwC, financial organisations, including banks, are prioritising governance rather than environmental and social factors. The finding shows that the banking industry is taking a lead in governance among Vietnamese businesses. Most banks have transformed operations to meet international standards of governance.

Titled "ESG in Banking: Leading Through Implementation," VIR's conference saw the participation of leaders of foreign financial institutions, commercial banks, and top-notch experts in the banking industry. The conference will be a platform for experts and policymakers to discuss how to perfect the legal framework for promoting ESG in banking activities and a roadmap to implement ESG in line with Vietnam's conditions.

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