ESG: Global trends and internal challenges
With the theme “Better Together - Strengthening Together” throughout the campaign to celebrate 20 years of operation in Vietnam, Cathay United Bank - Ho Chi Minh City Branch (CUBHCM) organized the seminar "ESG: Challenges and Solutions for Sustainable Development", affirming its commitment to promoting innovation and sustainable development. In the context of Environmental, Social and Governance (ESG) criteria increasingly influencing global business strategies, the event provides a practical perspective for businesses seeking a sustainable direction.
As a commercial bank under Cathay Financial Group - one of Asia's leading financial institutions, Cathay United Bank Co., Ltd. (CUB) not only provides financial services but also a partner accompanying businesses in the green transformation process. Since 2015, CUB has been the first Taiwanese bank to adopt The Equator Principles, ensuring that the projects it finances are in line with international standards on environmental and social risk management, laying the foundation for sustainable financial development in business.
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| Mr. Michael Wen - Deputy General Director of Cathay United Bank |
Speaking at the workshop, Mr. Michael Wen - Deputy General Director of CUB - emphasized: “We want to support customers in grasping ESG trends by providing information, sharing details, facts about global and local trends, legal developments, practical implementation methods to improve business adaptability. Vietnam's rapid economic growth brings both opportunities and challenges in the journey of sustainable development, and cooperation between businesses, financial institutions and policy makers is the key to promoting breakthrough changes”.
Also at the event, Mr. Nguyen Hoang Nam - ESG Services Leader, PwC Vietnam - pointed out the barriers that domestic small and medium enterprises are facing: "About 39% of enterprises have never heard of ESG and more than 60% are unclear about related regulations. The main barriers are financial constraints, lack of specific legal guidance and specialized human resources".
To overcome this, Mr. Nam believes that businesses need to invest in internal ESG training, build a reliable reporting data system, proactively seek green financial partners and connect with industry associations to learn.
Implementation practices and effective models
Despite many challenges, ESG implementation in Vietnam is showing positive changes. At the policy level, the Government has issued the Green Growth Strategy for the period 2021–2030. The workshop also received sharing from representatives of typical enterprises in ESG implementation such as IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods and Micro Electricity.
Specifically, IDICO Industrial Park has applied a “green industry” model such as installing solar power systems on factory roofs, reusing wastewater, and building convenient social housing for workers. Meanwhile, Schneider Electric, with its commitment to “Net Zero by 2050,” is promoting the development of clean energy technology and decarbonizing the grid.
Cathay United Bank - A partner for sustainable development with Vietnamese enterprises
As of 2024, CUB has received nearly 90 prestigious international awards in the fields of asset management, digital innovation and ESG practices, affirming its pioneering position. Notably, CUB was also recently ranked in the top 20% of the sustainable finance rankings by the Financial Supervisory Commission (FSC) of Taiwan.
With the orientation of considering Vietnam as a “second home”, CUB has taken many concrete steps to promote ESG in our country’s market. In particular, the bank has cooperated with the Asian Development Bank (ADB) to finance Vietnam’s largest onshore wind power project in Ninh Thuan , with a total investment of up to 107 million USD.
In addition, CUBHCM has implemented green commercial loan packages (Green Loan) in the form of CAPEX funding to support businesses in developing environmentally friendly projects. The factories in the first phase of the program are also the first facilities in Northern Vietnam to achieve the international LEED green building certification.
Mr. Lu Wei Chieh, General Director of Cathay United Bank - Ho Chi Minh City Branch - shared: “Today's conference is where we look directly at real challenges and together find feasible solutions for ESG and sustainable development. From energy transition, ESG strategy to business stories, all show that cooperation is the key factor to create long-term change”.
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| Mr. Lu Wei Chieh, General Director of CUBHCM (6th from left) emphasized the role of cooperation in sustainable development. |
As the opening event of a series of activities to celebrate 20 years of operation in Vietnam, this conference reaffirms CUB's commitment to connecting people, ideas and solutions. With the message "Better Together - Strengthening Together", the bank emphasizes that ESG is a shared responsibility, requiring consensus between businesses, finance and the community to go further.
Source: https://baodautu.vn/cubhcm-to-chuc-hoi-thao-esg-chia-khoa-mo-loi-phat-trien-ben-vung-d296981.html
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