HDBank has made this a central focus of its operations, aligning closely with the government's steadfast commitment to meeting the objectives set forth in the Paris Agreement, particularly the ambitious target of achieving net-zero emissions by 2050.
Pioneering the "Green Journey"
In the broader context of the government's strategy for sustainable development, encompassing quality of life, environmental preservation, and social concerns, the banking sector plays a pivotal role in collaborating and contributing to the creation of a sustainable economy. Both the banking industry and HDBank have adopted increasingly stringent standards for developing products and services within sectors, businesses, and investment activities that impact the environment and society. They are channeling their resources towards green transformation and sustainable growth.
On this "green journey", HDBank stands as one of the pioneering commercial banks committed to issuing policies promoting green credit and environmental and social protection. The bank has also undertaken comprehensive training programs for its staff, educating them on environmental and social risk assessment during the credit approval process while enhancing advisory and support services for customers. In addition, HDBank is dedicated to reducing CO2 emissions in its banking operations through tangible measures, such as raising awareness among its employees and engaging in community outreach regarding greenhouse gas emissions.
In 2022 alone, HDBank disbursed VND 11,000 billion towards green transformation and high-tech agricultural projects. Presently, HDBank is actively researching and refining a suite of green financial policies designed for both businesses and individuals, including green loan packages and related services. To bolster resources for green transformation, HDBank is not only leveraging the support of international financial institutions but also aligning with the government's policies and the State Bank's commitments under the Paris Agreement and COP26.
In regard to the emerging carbon credit market, HDBank recognizes that carbon credits will be a tangible commodity in the endeavor to reduce greenhouse gas emissions. Once the legal framework for this market is established and the pilot operation of a carbon credit exchange, slated for 2025, takes shape in accordance with government plans, the bank will explore solutions to assist individuals and businesses participating in this market.
Enhancing the Role of Green Credit
Green credit has provided HDBank with substantial capital and invaluable guidance from reputable international financial institutions over several years. This collaborative relationship continues to expand, with increased funding limits, reaffirming HDBank's reputation and significance in the market. It underscores the bank's commitment to the future of sustainable development and its responsibility to the community.
HDBank has also been at the forefront of applying Environmental, Social, and Governance (ESG) standards across its business, environmental, and societal domains, as well as corporate governance. Over the past decade, HDBank has continually improved its financial capabilities and operational efficiency, fully complying with Basel III standards. With robust financial strength and support from prominent global financial institutions, HDBank has established itself as one of the leading commercial banks in Vietnam, facilitating the growth of green credit resources in the country.
The 2023 Annual General Meeting of Shareholders for HDBank has explicitly outlined agriculture and rural development as a central pillar of its growth strategy. Emerging challenges such as food security, climate change adaptation, and disruptions in global supply chains underscore the timeliness of this strategy. As such, HDBank has proactively crafted and expanded suitable banking services and products tailored to support the agricultural and rural sectors, particularly in agro-forestry-fishery industries and their production and supply chains.
The bank also consistently reinforces its role as a capital conduit for businesses operating in government and State Bank priority sectors, with a strong emphasis on green finance. This effort aims to facilitate businesses in adopting green solutions and ensuring job opportunities for workers. Consequently, HDBank has not only improved its business efficiency but also contributed to the banking sector's overarching goal, aligning with the government's vision of developing one million businesses in the future.
In the coming years, HDBank will remain committed to adhering to the government and State Bank's directives and strategies for sustainable development and green growth. The bank will continue to closely collaborate with the business community to align their goals with sustainable development objectives, encompassing environmental, societal, and governance concerns. It is evident that sustainable development forms the cornerstone and core of HDBank's future accomplishments and successes.
