ESG in financial sector driving economic development

An increasing number of domestic and foreign financial institutions are adopting environmental, social, and governance (ESG) standards for their investment activities as well as channeling capital sources into sustainable business activities. They also join forces to promote sustainable development in Vietnam.

Accordingly, Standard Chartered Bank Vietnam, Prudential Vietnam, and Home Credit Vietnam have shaken hands towards the development of a sustainable future. This marks a pioneering partnership between three large corporations in the banking, insurance, and consumer finance industries.

Three companies recently participated in the U.K. Festival themed "U.K.-Vietnam: Building for the Future" in Hanoi and HCMC in September, commemorating 50 years of Vietnam-U.K. diplomatic relations. The U.K. Festival is going to take place in Da Nang on October 16.

The representatives from Standard Chartered Bank Vietnam, Prudential Vietnam, and Home Credit Vietnam gather at the U.K. Festival themed "UK-Vietnam: Building for the Future". Photo courtesy of Home Credit

With a range of exciting activities, the festival offers a unique opportunity for viewers to explore the contributions and deep connections between the U.K. and Vietnam. Attendees can visit the festival's education pavilions, which showcase top academic programs.

In addition, the two countries have also been developing cooperation in climate change response, sustainable development, and renewable energy.

Booths at the festival will show an array of products and services hailing from popular retail, healthcare, and financial brands. Visitors can also learn more about the renewable energy projects and technologies that reflect the commitment of both nations to a greener, more sustainable future.

Staff members from three companies commit to strive for the development of a sustainable future. Photo courtesy of Home Credit

Since its inception in Vietnam in 2008, Home Credit has pursued sustainable development. The strategy, coupled with the ESG policy, aims to cement business relationships with customers, communities, employees, and partners. This lays the foundation for Home Credit to recap the rewards.

The company serves more than 15 million customers and attracts 300,000 new customers monthly, with more than 6,000 employees. It has formed a network of more than 11,000 retail partners while maintaining a bad debt ratio below the 3% standard.

In addition to business development, Home Credit constantly invests in activities to improve corporate governance capabilities, protect the environment, and support the community towards sustainable development goals.

In Vietnam, Standard Chartered's history can be traced back to 1904, when the bank opened its first branch in Saigon. Standard Chartered has been acting as a strong partner in ESG and sustainable finance for its clients, with an increasing focus on helping clients to decarbonize and transition.

The bank has expanded its sustainable finance asset books to over US$13 billion in 2022, representing 30% on-year growth.

With over 30 product variants for sustainable finance and a team of 100 specialists skilled in various areas of sustainability practice, Standard Chartered is a reliable partner for clients at various stages of their journey in ESG to confidently access the most innovative services and products in sustainable finance, transition finance, blended finance, and carbon markets.

Home Credit's commercial products displayed booth at an event in Hanoi. Photo courtesy of Home Credit

Sustainable development is also a long-term goal of Prudential. 2023 marks the 175th anniversary of the establishment of Prudential plc, which serves more than 18 million customers across Asian and African markets.

In Vietnam, Prudential is committed to supporting the government to achieve the net-zero goal by 2050. Accordingly, Prudential has become one of the financial institutions acting under the Just Energy Transition Partnership.

On August 30, Prudential plc launched a new purpose statement "For Every Life, For Every Future", which reflects its mission to be the most trusted partner and protector for this generation and generations to come by providing simple and accessible financial and health solutions.