The ceremony to announce sustainable businesses in Vietnam in 2023 took place on December 13, 2023 in Hanoi, organized by the Vietnam Confederation of Commerce and Industry (VCCI) and the Vietnam Business Council for Sustainable Development. Nam (VBCSD-VCCI) organized. At the Announcement Ceremony, BIDV was honored for the 5th time as one of the Top Sustainable Enterprises in the field of trade and services.
Recognizing the role and significance of green growth and green economy, BIDV has established the goal of “creating sustainable value” right from the time of building its business strategy for the period 2021-2025 with a vision to 2030. Here is a consistent goal in organizing and deploying banking activities, in which BIDV determines to make green credit, green financing and building green banks one of the priority contents in the development strategy.
BIDV has researched and built a green financial framework across all operational areas to ensure the organization, operation and management of the bank in accordance with the set sustainable development strategy. Currently, BIDV has issued 03 green finance frameworks including: Environmental and social risk management framework applied to loans from international capital sources (ESMS); Sustainable loan framework; Green bond framework. Thereby, BIDV establishes the basic foundations for credit granting, capital mobilization and risk management in sustainable financial activities at the Bank.
With a commitment to accompany businesses in sustainable development strategies, BIDV has implemented many preferential green credit programs from commercial capital and entrusted capital, especially from issuing green bonds, for fields such as: Renewable energy; clean energy; production and consumption sectors with low carbon emissions and adaptation to climate change… At the same time, BIDV determines project selection criteria, credit management and supervision to create and maintain a credit portfolio. Quality green applications for banks.
Ms. Pham Thi Van Khanh – Director of Corporate Customer Department, representative of BIDV received the award.
By the end of the third quarter of 2023, BIDV has sponsored more than 1,500 customers with 1,900 green credit projects/options. Total outstanding debt reaches about 71,000 billion VND, accounting for about 5% of BIDV’s total outstanding debt, an increase of about 11% compared to 2022; Leading the way is clean energy and renewable energy with outstanding debt of VND 57,000 billion, accounting for 86% of total outstanding green sector debt with 1,600 projects of 1,300 customers; Next is the field of natural environment protection, ecological environment restoration and natural disaster prevention with outstanding debt of 7,100 billion VND, accounting for about 11%. In October 2023, in order to support textile and garment enterprises in the process of green transition towards sustainable development, BIDV launched a green textile credit package worth VND 4,200 billion with attractive interest rate policies. , collateral and exchange rates…
In addition to granting green credit from commercial capital sources, BIDV also receives the trust of many international financial institutions such as WB, AFD, EIB to provide trust capital for green project loans through BIDV; Total value reached more than 490 million USD. Notably, the WB’s capital is worth 202 million USD for the Renewable Energy Project; AFD capital worth 100 million USD for SUNREF Green Credit Line; EIB capital worth 30 million USD lends to environmental protection projects… Up to now, there have been 24 projects participating in these programs with a total outstanding debt of about 3,800 billion VND.
BIDV is the first commercial bank to issue domestic green bonds worth over VND 2,000 billion according to ICMA principles (ICMA Green Bond Principles), the goal of financing green, energy saving, and deflation projects. waste, environmental protection, in accordance with BIDV’s Green Bond Framework; thereby continuing to affirm BIDV’s pioneering and market-leading position in green and sustainable development activities.
About the Sustainable Business Award: To win the award, participating businesses must fully meet the rigorous screening criteria of the Sustainable Business Index (CSI) on different aspects: economic results; corporate governance; environment; and labor and society. Of the 130 indicators of CSI 2023, up to 63% of indicators are related to legal compliance requirements, and indicators related to sustainable business initiatives account for 37%. The 2023 Program has innovations such as: Implemented fundamental improvements to the CSI Index – a tool to assess the level of sustainable development of businesses participating in the Program; Improve the evaluation and appraisal process in a more scientific, transparent and rigorous manner; Expand the participation of representatives of press agencies in the CSI Evaluation Council…
