Commitment and current status of ESG implementation at Agribank

Agribank focuses on prioritizing capital sources for green credit

Over the past years, Agribank has been focusing on prioritizing capital sources, effectively expanding lending to projects and programs for production and business development, especially programs and projects that create added value, clean energy, and high-tech agriculture . Since 2016, Agribank has begun implementing a preferential credit program to serve "clean agriculture" with a minimum capital scale of VND 50 trillion for customers who are enterprises, cooperatives, cooperative unions, farm owners, etc. participating in stages of the chain of safe, large-scale agricultural product production with loan interest rates reduced from 0.5%/year to 1.5%/year compared to preferential lending interest rates for the agricultural and rural sectors according to current regulations of the State Bank and Agribank.

Agribank cooperated with the Ministry of Agriculture and Rural Development (MARD) to implement credit support for the Pilot Project on building a standard agricultural and forestry raw material area for domestic consumption and export in the period of 2022 - 2025 and the Project on "Sustainable development of 1 million hectares of high-quality rice cultivation and low emission reduction associated with green growth in the Mekong Delta region by 2030.

Agribank expands investment in lending to projects related to environmental protection sponsored by international financial organizations such as: Improving the quality and safety of agricultural products and developing biogas programs; Coastal resources projects for sustainable development; Disaster risk management; Support for low-carbon agriculture; Clean water supply and rural sanitation in the Red River Delta, Wind power; Solar power; Providing credit for the fight against drought and salinity in the Mekong Delta and the Central Highlands...

Agribank is always a pioneer in supporting green economic models.

Implementing environmental risk management in credit granting activities

On December 23, 2022, the State Bank issued Circular 17/2022/TT-NHNN guiding the implementation of environmental risk management in credit granting activities of credit institutions. To meet the requirements of Circular 17, Agribank issued Regulation 1289/QyD/NHNo-RRTD dated May 31, 2023 on environmental risk management in Agribank's credit granting activities, effective from June 1, 2023 (Regulation 1289). In short, in the three focuses of ESG: environment, society and governance, Regulation 1289 is the clearest demonstration of Agribank's concern for the "environmental" factor, affirming that environmental risks in credit granting activities are also credit risks. Environmental risk management policy is central to sustainable governance and is an important key to driving Agribank to improve its sustainability efforts today and in the future.

Pioneering in implementing environmental protection and climate change response programs

Agribank has been implementing many practical programs and activities associated with the message "For a green future" - a consistent goal from awareness to action of nearly 40,000 employees in the entire system, including: "Agribank - One million trees, more trees, more life"; building and implementing projects closely following the program "Solving plastic and nylon pollution" launched by the Prime Minister and the United Nations; units in the Agribank system gradually use environmentally friendly materials in common activities...

Agribank directly organizes or participates in sponsoring and organizing many scientific research activities, seminars, working with international organizations, Banking Associations, European Chamber of Commerce (Eurocham), information agencies, press, political and social organizations to promote, share and learn experiences about ESG, green credit, etc.

Applying technology, building environmentally friendly habits

Implementing the digital transformation plan of the banking industry, continuing to transform the multi-service business model towards developing into a professional, modern bank with top-quality services with the motto of taking customers as the center, Agribank strengthens human resources and technology systems to synchronously deploy solutions to diversify products and services, expand distribution channels, develop new customers to open payment accounts and use services.

Agribank's utility services are diverse and abundant, meeting customers' needs for financial transactions and cashless payments, developing a digital ecosystem. In addition to developing traditional money transfer payment services at transaction counters, electronic payment services are strongly developed through the deployment of services on Emobile banking and Internet banking. This contributes to limiting printed documents and paper declarations from customers, thereby limiting the use of printing paper, ink... which will greatly reduce carbon emissions into the environment.

Agribank develops a digital ecosystem, digital payments, and digital transformation through the continuous launch and improvement of many digital products, aiming to simplify the process and enhance customer convenience, specifically: Opening an online payment account on Digital Banking applications (eKYC); enhancing convenience, diversifying e-banking products and services; expanding collection and payment services; applying the digital banking model in card services; automatic debt collection on IPCAS, looking up loan information and debt collection on Agribank E-Mobile Banking application, inquiring about letter of guarantee confirmation on Agribank website...

Source: https://www.congluan.vn/cam-ket-va-thuc-trang-trien-khai-esg-tai-agribank-post310013.html