VietinBank announces Sustainable Finance Framework
VietinBank announces Sustainable Finance Framework
Combatting and adapting to climate change, protecting the environment is a common global action trend towards sustainable development goals. At the 2021 United Nations Climate Change Conference (COP26), Vietnam has made a strong commitment to achieving net zero emissions by 2050.
Responding to the green growth and sustainable development policies issued by the Government, VietinBank, as a leading bank, providing the "lifeline" capital flow to the economy, has announced the Bank's Sustainable Finance Framework, contributing to the implementation of the commitment to accompany the Government and customers to achieve net zero emissions.
In particular, VietinBank's Sustainable Finance Framework has been assessed by Morningstar Sustainalytics, the world's leading ESG research, rating and data company as "reliable, impactful and in accordance with the 2021 Sustainability Bond Guidelines, the 2021 Green Bond Principles, the 2023 Social Bond Principles, the 2023 Green Loan Principles and the 2023 Social Loan Principles" issued by the International Capital Market Association (ICMA), the Loan Market Association (LMA), and the Asia Pacific Loan Market Association (APLMA).
Accordingly, the Sustainable Finance Framework sets out VietinBank's orientations in financing and managing funding for sustainable development purposes based on 4 main pillars, from the purpose of capital use, the process of assessing and selecting funding items to the management of capital use and reporting. VietinBank's Sustainable Finance Framework is designed in a comprehensive approach, applied to both lending and bond financing instruments, serving both Green and Social projects/solutions. Accordingly, Green capital use purpose groups include: renewable energy, energy efficiency, circular economy, green transportation, green buildings, sustainable agriculture, forestry and fishery, and biodiversity conservation; social capital use purpose groups include: access to basic infrastructure, social housing and access to basic services (health and education).
Before issuing the Sustainable Finance Framework, VietinBank considered sustainable development as a core activity of the Bank. VietinBank has proactively developed policies and products to create flexible mechanisms for financing sustainable development in the fields such as: renewable energy, clean energy, sustainable water management, green agriculture, sustainable forestry, waste treatment and pollution control.
In the period of 2018 - 2022, VietinBank's sustainable finance recorded a 100% growth. In 2024, VietinBank launched a green credit package worth VND 5,000 billion with many interest rate and fee incentives for solutions/projects meeting sustainable criteria.
Sustainable Finance Framework will be the basis for VietinBank to standardize its credit granting activities, issue bonds for Green and Social purposes, striving to realize the Bank's commitment to sustainable development goals.
Combatting and adapting to climate change, protecting the environment is a common global action trend towards sustainable development goals. At the 2021 United Nations Climate Change Conference (COP26), Vietnam has made a strong commitment to achieving net zero emissions by 2050.
Responding to the green growth and sustainable development policies issued by the Government, VietinBank, as a leading bank, providing the "lifeline" capital flow to the economy, has announced the Bank's Sustainable Finance Framework, contributing to the implementation of the commitment to accompany the Government and customers to achieve net zero emissions.
In particular, VietinBank's Sustainable Finance Framework has been assessed by Morningstar Sustainalytics, the world's leading ESG research, rating and data company as "reliable, impactful and in accordance with the 2021 Sustainability Bond Guidelines, the 2021 Green Bond Principles, the 2023 Social Bond Principles, the 2023 Green Loan Principles and the 2023 Social Loan Principles" issued by the International Capital Market Association (ICMA), the Loan Market Association (LMA), and the Asia Pacific Loan Market Association (APLMA).
Accordingly, the Sustainable Finance Framework sets out VietinBank's orientations in financing and managing funding for sustainable development purposes based on 4 main pillars, from the purpose of capital use, the process of assessing and selecting funding items to the management of capital use and reporting. VietinBank's Sustainable Finance Framework is designed in a comprehensive approach, applied to both lending and bond financing instruments, serving both Green and Social projects/solutions. Accordingly, Green capital use purpose groups include: renewable energy, energy efficiency, circular economy, green transportation, green buildings, sustainable agriculture, forestry and fishery, and biodiversity conservation; social capital use purpose groups include: access to basic infrastructure, social housing and access to basic services (health and education).
Before issuing the Sustainable Finance Framework, VietinBank considered sustainable development as a core activity of the Bank. VietinBank has proactively developed policies and products to create flexible mechanisms for financing sustainable development in the fields such as: renewable energy, clean energy, sustainable water management, green agriculture, sustainable forestry, waste treatment and pollution control.
In the period of 2018 - 2022, VietinBank's sustainable finance recorded a 100% growth. In 2024, VietinBank launched a green credit package worth VND 5,000 billion with many interest rate and fee incentives for solutions/projects meeting sustainable criteria.
Sustainable Finance Framework will be the basis for VietinBank to standardize its credit granting activities, issue bonds for Green and Social purposes, striving to realize the Bank's commitment to sustainable development goals.