In 2024, SHB was honored for the second consecutive year by Global Finance magazine, the only representative in the Asia-Pacific region, in the category of Best Sustainable Finance Bank.
In addition to its policies, governance objectives, and measurable achievements in sustainable finance, Global Finance highly appreciated SHB’s outstanding community responsibility projects, notably the “Support for Mitigating the Impact of COVID-19 for Women-owned Businesses” program funded by ADB. By the end of 2022, SHB led among the 5 banks participating in the project with a total amount of non-refundable aid from ADB to directly support customers of up to 1.7 million USD USD.
SHB was also awarded the “Best ESG Impact Bank in Vietnam” by Asiamoney magazine and FinanceAsia magazine for its positive impacts related to environment, society and governance. At the Green Economy Forum for a Sustainably Developed Nation organized by the Vietnam Environment Association, SHB was ranked in the Top 10 green and sustainably developed enterprises, and was also in the Top 10 Banks effectively arranging capital investment for energy projects in Vietnam for the 2017-2021 period, as honored by the Vietnam Energy Association…
Promoting Green Capital Flows, SHB Accompanies the Country’s Sustainable Development
As an important financial supply channel for the economy, the banking system in general and SHB in particular have always determined their role and responsibility in “greening” capital flows for the goal of sustainable development, actively accompanying the Government in its goal of responding to climate change.
The Hanh Phuc Rice Factory – the largest-scale investment project in Asia – was completed thanks to a VND 1,000 billion fund sponsored by SHB and was inaugurated in January 2022.
With its position as being in the top 4 private commercial banks, always accompanying the country’s sustainable development, SHB has recently focused on promoting capital sponsorship in the fields of agriculture, forestry, food and foodstuff processing, industries, especially investing in green energy projects, renewable energy, infrastructure development, building a circular economy for key areas nationwide.
“For 2 consecutive years, surpassing 13 countries and territories in the Asia-Pacific to win the “Best Sustainable Finance Bank” award, SHB has affirmed an accurate approach in meeting and complying with guidelines for promoting green credit such as: IFC’s guidelines and SBV’s implementation of environmental risk management in lending activities; on that basis, building regulations on environmental and social risk management in lending activities at the bank”, said an SHB representative.
SHB applies a set of social and environmental risk assessment tools with many strict criteria issued by the State Bank and IFC. Therefore, projects receiving capital must meet stringent conditions according to domestic and international standards on environmental protection, energy and resource conservation. In addition to capital support, SHB also accompanies project owners through technical safety consulting, capacity building, etc., contributing to helping customers meet the requirements of international organizations, providing carbon financing programs, training programs, loan guarantees.
“We aim for green credit at SHB within the next 5 years to account for 10% of the bank’s total outstanding debt. This is quite a challenging goal, but it affirms SHB’s sustainable commitment to a long-term, stable development strategy, responding to the country’s policies, along with the Prime Minister’s commitment at the COP26 conference, bringing net emissions to “0” by 2050″, emphasized an SHB representative.
Recognizing the importance of sustainable development early on, 10 years ago, SHB cooperated with international partners such as the World Bank, IFC, ADB, etc., and continues to enhance efforts to seek long-term preferential capital sources, while consulting on safety and technology to support customers and SHB in implementing and effectively financing projects.
Green energy projects are always a priority for SHB’s capital sponsorship.
In addition, SHB has boosted capital for projects accompanying the national strategy such as sustainable agriculture projects, clean energy, key projects, logistics, etc. Some of the projects that have been completed and highly appreciated by experts in the green economy include the Hanh Phuc Rice Factory – the largest-scale investment project in Asia in An Giang, inaugurated in January 2022.
The factory was completed thanks to a VND 1,000 billion fund sponsored by SHB with the aim of gradually stabilizing food security and increasing Vietnam’s agricultural product export value. The factory operates 100% according to technology solutions imported from Europe, processing rice according to international standards, meeting the world’s strict standards on food safety and environmental friendliness, contributing to increasing the value of Vietnamese rice. The factory’s fresh rice drying capacity is 4,800 tons/day, milling and processing capacity is about 1,600 tons/day, and total finished rice capacity is 1,000 tons/day.
Green energy projects are always SHB’s choice. The Yang Trung Wind Power Plant, one of the largest wind power clusters located in Gia Lai, has a total power generation capacity of up to 145Mw, contributing nearly 1 million MWh to the national grid each year. With 36 wind turbines, the plant has a total expected investment of VND 6,246 billion, most of which is sponsored by SHB.
In the Central Highlands, SHB has also disbursed more than VND 584 billion, equivalent to 70% of the total investment capital for the construction project of Dak Sin 1 Hydropower Plant. In the North and North Central regions, SHB has also invested in the Nam Luc Hydropower Plant project (Lao Cai), the Bai Thuong Hydropower Project (Thanh Hoa).
In addition to agricultural and clean energy projects, SHB has actively invested in key national works and logistics projects. In 2013, SHB sponsored VND 6,200 billion for key national infrastructure and transportation projects, such as the three-level overpass at the Hue – Da Nang traffic intersection; the project to expand National Highway 1 through Thua Thien Hue and Khanh Hoa, etc.
SHB has actively invested in key national works and logistics projects.
Logistics and seaport transportation are identified as key economic drivers for the country. Aiming to complete 6 goals in the “Action Plan to Improve the Competitiveness and Develop Vietnam’s Logistics Services by 2025” set out by the Government, SHB has provided capital for the Vinh Phuc ICD Logistics Center – an opening project for the ASEAN Smart Logistics Network (ASLN), which is jointly implemented by Vietnam and Singapore under the promotion of the two Prime Ministers. The project has a scale of 83 hectares, a total investment capital of over 200 million USD, and a designed goods clearance capacity of about 530,000 TEUs/year.
