Unlocking the Door to Sustainability: ESG Workshop by CUBHCM

ESG: Global Trends and Intrinsic Challenges

With the theme “Better Together – United for Greater Strength” running throughout its 20th-anniversary campaign in Vietnam, Cathay United Bank – Ho Chi Minh City Branch (CUBHCM) organized a workshop titled “ESG: Challenges and Solutions for Sustainable Development.” This event underscores the bank’s commitment to fostering innovation and sustainability. As Environmental, Social, and Governance (ESG) criteria increasingly influence global business strategies, the workshop offers practical insights for businesses seeking a sustainable path forward.

As a commercial bank under the Cathay Financial Holding – one of Asia’s leading financial institutions, Cathay United Bank Co., Ltd. (CUB) is not just a provider of financial services but also a partner in businesses’ green transition. Since 2015, CUB has been a pioneer in adopting the Equator Principles, ensuring that the projects it finances meet international standards for environmental and social risk management, thus laying the foundation for sustainable finance in its business operations.

Mr. Michael Wen, Deputy General Manager of Cathay United Bank

Speaking at the workshop, Mr. Michael Wen, Deputy General Manager of CUB, emphasized, “We aim to support our clients in embracing ESG trends by providing information and sharing details and realities about global and local trends, legal developments, and practical implementation approaches to enhance businesses’ adaptability. Vietnam’s rapid economic growth presents both opportunities and challenges in the journey towards sustainability, and collaboration among businesses, financial organizations, and policymakers is key to driving breakthrough changes.”

Also present at the event, Mr. Nguyen Hoang Nam, Leader of ESG Services at PwC Vietnam, pointed out the barriers faced by domestic small and medium-sized enterprises: “About 39% of businesses have never heard of ESG, and more than 60% are unclear about the related regulations. The main obstacles are financial constraints, lack of specific legal guidance, and specialized human resources.”

To address these challenges, Mr. Nam suggested that businesses invest in internal ESG training, build a reliable reporting data system, proactively seek green financial partners, and connect with industry associations to learn and adapt.

CUBHCM has taken concrete steps to promote ESG in the Vietnamese market

Practical Implementation and Effective Models

Despite the challenges, the implementation of ESG in Vietnam is witnessing positive changes. At the policy level, the government has issued the Green Growth Strategy for the period of 2021–2030. The workshop also acknowledged the contributions of representative businesses in adopting ESG practices, including IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods, and Micro Electricity.

Specifically, IDICO Industrial Park has implemented a “green industry” model by installing solar panels on factory roofs, reusing wastewater, and constructing social housing with utilities for workers. Meanwhile, Schneider Electric, with its commitment to “Net Zero by 2050,” is promoting the development of clean energy technologies and decarbonizing the power grid.

Representatives of leading companies in ESG implementation and CUB joined the discussion session.

Cathay United Bank – A Partner in Sustainable Development with Vietnamese Enterprises

As of 2024, CUB has received nearly 90 prestigious international awards in asset management, digital innovation, and ESG practices, solidifying its pioneering position. Notably, CUB was recently ranked in the top 20% of the Taiwan Financial Supervisory Commission’s (FSC) sustainable finance rankings.

Considering Vietnam as its “second home,” CUB has taken concrete steps to promote ESG in the local market. Notably, the bank has collaborated with the Asian Development Bank (ADB) to finance one of the largest onshore wind power projects in Ninh Thuan province, with a total investment of up to USD 107 million.

Additionally, CUBHCM has launched green commercial loan packages (Green Loan) in the form of CAPEX financing to support businesses in developing environmentally friendly projects. The factories in the initial phase of the program are also pioneers in Northern Vietnam in obtaining the international LEED green building certification.

Mr. Lu Wei Chieh, General Manager of CUBHCM, affirmed that collaboration is key to long-term change.

Mr. Lu Wei Chieh, General Manager of Cathay United Bank – Ho Chi Minh City Branch, shared, “Today’s workshop is where we face the practical challenges of ESG and sustainable development head-on and work together to find feasible solutions. From energy transition and ESG strategies to business stories, it all points to the fact that collaboration is key to driving long-term change.”

As the opening event of a series of activities celebrating 20 years of operation in Vietnam, this workshop reaffirms CUB’s commitment to connecting people, ideas, and solutions. With the message “Better Together – United for Greater Strength,” the bank emphasizes that ESG is a shared responsibility, requiring unity between businesses, finance, and the community to go further.