Improving ESG management capacity, TPBank steps forward on the path of sustainable development

After initial successes in early implementation of Environmental - Social - Governance (ESG) factors, opening the "door" to a future of sustainable development, TPBank continues to coordinate with partners to improve Enhance ESG capabilities to affirm reputation and strengthen position in the market.

On August 18, Tien Phong Commercial Joint Stock Bank (TPBank) held a launching ceremony for the Project on Building a Framework and Improving Implementation Capacity on Environment - Society - Governance (ESG Project). Attending the event were representatives from the Banking Strategy Institute; Department of Credit for Economic Sectors; Department of Safety Supervision of the System of Credit Institutions; Banking Association, International Financial Institution IFC, Asian Development Bank (ADB) and representative of project implementation partner - KPMG Tax and Consulting Company Limited.

Delegates attending the event took commemorative photos at the launching ceremony of the ESG Project.

At the ceremony, TPBank announced a plan to implement a comprehensive ESG Project within 12 months, with 3 main components including: Building a Sustainable Development Report; Building an ESG Governance Framework; Building a Green Credit Framework and Strategy. TPBank's implementation of the ESG Project is a step ahead of trends in the world in general and Vietnam in particular, when environmental and social issues are increasingly of concern.
Attending the event, Ms. Nguyen Thi Hoa, Director of the Institute of Banking Strategy, emphasized that green growth and sustainable development have become a popular trend, a key policy choice of many countries. In Vietnam, the Prime Minister at the COP26 Conference committed to achieving net zero emissions by 2050. To successfully implement this commitment, the financial system, of which the mainstay is the banking system, is required. Banking plays an extremely important role in the process of providing credit capital, promoting the process of transforming the economy from "brown" to "green". Accordingly, the pressure to carry out this responsibility on the banking system in general and commercial banks in particular is not small.
Ms. Hoa shared: "Digital transformation and implementation of environment - society - governance are inevitable requirements that cannot be reversed, in the process of restructuring financial institutions in general and commercial banks in general. specifically, towards sustainable development. TPBank is one of the late-born banks in the joint stock banking system, having gone through a period of restructuring to overcome weaknesses to stand strong. TPBank's launch of the ESG Project demonstrates pioneering, being ahead of the curve, keeping up with the trends of the times and demonstrating a long-term vision in its development process. I believe that TPBank's ESG Project will reap results on schedule, contributing to the Bank's take-off in the future."
Mr. Nguyen Hung, General Director of TPBank hopes that with experience in implementing ESG in Vietnam and a deep understanding of TPBank, KPMG will accompany the bank to successfully implement its goals in the near future. “We are confident that the TPBank team can receive technical and technology transfer to implement good governance according to international ESG standards, ensuring green, healthy, sustainable and responsible development. with the community, with society, with the environment," Mr. Hung shared.
Welcoming TPBank to take the lead in implementing the ESG Project comprehensively, Mr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banking Association also said that project implementation is a strategic planning step. important for TPBank.
Attending the launching ceremony of TPBank's ESG Project, two major partners, IFC and ADB, shared their joy at the news that TPBank cooperated with KPMG to promote the implementation of ESG-related activities. This is an important milestone showing that TPBank is continuing to develop in a sustainable direction and the two partners are pleased to accompany on this path towards the common sustainable development goal of the entire industry.
Resounding reputation thanks to sustainable development activities
In recent years, ESG criteria (Environment/Social/Governance) have received increasing attention and have gradually become a measure of the sustainable development of a business. , helps investors screen potential investments.
Recognizing the important role of the banking industry - a channel to provide and coordinate capital for the economy based on a strict risk appraisal process, TPBank leads the implementation of ESG to meet investor expectations and managers, contributing to helping customers set new standards for sustainable development and building internal strength within the bank itself. TPBank's set of ESG criteria especially coincides with its vision and mission on the path of serving customers.
Since the first days of entering the market, TPBank has focused on ESG factors as the foundation for sustainable development. Besides data and reports, TPBank also puts ESG into practical application in all activities. TPBank's prestigious reputation is constantly being improved. Recently, the Ho Chi Minh City Stock Exchange (HSX) announced TPBank's group of 20 businesses with the best sustainable development index in the stock market (VNSI - Vietnam Sustainability Index) for the period from July/ 2023 - July 2024.
At the same time, TPBank also registered in the Top 15 Large Cap Listed Enterprises meeting the Information Disclosure Standard on the stock market in 2023 under the framework of the 2023 IR Awards jointly co-sponsored by Vietstock, VAFE Association and FILI Electronic Magazine. organization. The bank was also honored by Vietnam Report Company (VNR) in the Top 50 prestigious and effective public companies (VIX50).

Mr. Nguyen Hung - General Director of TPBank is confident that the TPBank team can receive technical and technology transfer to well implement governance according to ESG standards.

Digitize and 'green' capital flows for the future
Pursuing the path of digitalization is TPBank's creative and different way of applying ESG. With the most modern digital ecosystem in the financial market today, notably with nearly 500 automatic banks that "don't sleep" LiveBank, TPBank has brought to the financial market a new and minimized transaction method. paper usage, time and effort for both customers and industry human resources.
At TPBank, using documents has become a "luxury". By the end of 2022, 100% of digital platforms will be deployed in all internal and external activities, online and offline. 90% of TPBank's work and operating processes are paperless, helping the bank practice savings and reduce environmental emissions in the most practical way.
In parallel with increasing digital content in all aspects, TPBank also pursued a green credit model early on. In 2017, the bank led East Asia in supporting transactions that have a positive impact on combating climate change. In 2018, TPBank was one of eight banks in the East Asia Pacific region honored to receive an award from the International Finance Organization IFC in the field of trade finance for climate change adaptation projects through bright.
In 2019, TPBank signed a long-term contract for a green credit loan worth 20 million USD within 3 years from The Global Climate Partnership Find (GCPF). Earlier this year, in the credit package with preferential interest rates worth VND 5,000 billion, TPBank also gave special priority to green development businesses and women-owned businesses.
Not only does it provide customers with a sustainable source of long-term green credit, implementing ESG also helps TPBank itself to participate in green credit programs and activities, and access green capital.
Manage risks, strengthen trust, affirm position
In ESG, risk management is a key factor throughout the banking industry's operations. TPBank always maintains its position among the top in the industry and constantly improves and applies advanced risk management standards. In 2021, TPBank is the first bank in the market to be independently reviewed and recognized by a third party - KPMG Company as having completed all the requirements of Basel III and IFRS 9. TPBank is also an international rating organization. Moody's rated Ba3, stable outlook - the highest level among private joint stock commercial banks in Vietnam rated by Moody's.
In May 2023, in order to upgrade risk management capacity according to Basel III, TPBank continues to implement the Capital Calculation Project according to Basel III based on internal ranking methods (FIRB & AIRB). Within the framework of this ESG Project, the bank will integrate and develop a method to integrate ESG factors into capital calculation according to IRB.
With efforts in the field of management, TPBank's capital adequacy ratio (CAR) reached 12.65%, much higher than Basel II's minimum requirement of 8%, among the highest in the industry, according to Latest report of HSC Securities Company.
With the ESG Project, TPBank's risk management and safe and sustainable development foundation will continue to reach new heights, enhancing investor and customer confidence and position in the market.