The Sustainable Finance Framework is a set of tools applied in practical business operations, aligning with ACB’s sustainable development strategy. ACB’s framework also meets the State Bank of Vietnam’s orientation on green credit.
The Sustainable Finance Framework is designed for credit activities and adheres to the Green and Social Bond Principles established by the International Capital Market Association (ICMA) and the Green and Social Loan Principles by the Loan Market Association (LMA). It also aligns with ACB’s internal processes. ACB is one of the first banks in Vietnam to develop and publish such a framework.
The introduction of this framework underscores ACB’s strategic focus on exploring new opportunities in Vietnam’s emerging green finance sector, including renewable energy, green transportation, and green buildings. This approach will enable ACB, businesses, and partners to contribute to a balance between economic, environmental, and social factors while mitigating environmental and social risks, collectively fostering the country’s green growth.
ACB’s Sustainable Finance Framework is built on four specific principles: (1) Use of proceeds; (2) Project selection and evaluation process for sustainable allocation or reallocation of funding; (3) Management of raised capital; and (4) Reporting, including allocation and impact reporting. Adhering to these principles will help set fundamental standards for ACB to issue sustainable bonds/loans and promote responsible and sustainable financial practices in its business operations. The framework will be implemented alongside ACB’s Environment and Social Risk Assessment Policy.
The framework has received a Second Party Opinion (SPO) from Moody’s, a renowned rating agency, on the authenticity of its principles and their environmental and social impact. Moody’s also assigned a Sustainability Quality Score (SQS) of SQS3 (Good) to ACB, recognizing its strong ESG risk management capabilities.
Guided by the State Bank of Vietnam, ACB has actively undertaken initiatives aligned with the banking sector’s action program and the national strategy for green growth during 2021-2030. Moreover, the bank’s efforts are in line with the United Nations’ 17 Sustainable Development Goals (SDGs), demonstrating ACB’s comprehensive and principled approach to promoting long-term development while protecting the community’s living environment.
In early 2024, ACB proactively offered a VND 2,000 billion credit package from its own capital to enterprises in the Green/Social portfolio to support their business capital needs. As of the end of August 2024, ACB had disbursed 86% of the Green/Social credit package. Mr. Ngo Tan Long, ACB’s Deputy CEO, shared, “We are committed to accompanying enterprises embracing sustainable development. In the long run, we will boost green capital in line with ACB’s ESG strategy.”
On its journey towards pioneering sustainable development based on the Environmental, Social, and Governance (ESG) pillars, ACB consistently undertakes substantive activities to pursue its ambition of becoming a platform encouraging ESG practices among stakeholders and expanding this model to more individuals and organizations in Vietnam. On August 2, ACB was named for the third consecutive time in the Top 50 Corporate Sustainability Awards (CSA), ranking in the top 50 for both outstanding CSR activities (Social criteria) and excellent Corporate Governance (Governance criteria).
Organizations, businesses, investors, and customers can refer to ACB’s Sustainable Finance Framework on the website: https://acb.com.vn/nha-dau-tu
