AI application in sustainable development reporting in banking sector

The event attracted the participation of more than 300 leaders representing government agencies, banks, businesses in the field of finance-fintech and international organizations.

In the context of an increasingly volatile global economy strongly impacted by environmental, social, and governance (ESG) issues, sustainable development is not only a voluntary social responsibility but has become a core element in the business strategy of financial institutions.

As the lifeblood of the economy, the banking industry not only has to manage traditional financial risks but also needs to proactively identify, measure, control risks, and take advantage of ESG-related opportunities in lending, investment, and internal operations.

Integrating ESG into business strategy and internal governance will create an important foundation to help the banking system develop sustainably, enhance competitiveness and effectively contribute to the goal of green and inclusive growth.

Speaking at the seminar, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that in 2024, the number of enterprises preparing separate Sustainable Development Reports increased to a record 33 organizations. Most credit institutions have reported and integrated sustainable development content in their Annual Reports, showing a positive change in the banking industry's awareness and actions towards environmental, social and governance (ESG) factors.

Of these, about 13-15 commercial banks have published their independent Sustainable Development Reports. The trend of publishing Sustainable Development Reports will increase sharply in 2024 and the first months of 2025 when recently 6 more commercial banks have officially published their Sustainable Development Reports.

Despite achieving positive results, according to the Deputy Governor's assessment, the practice and publication of Sustainable Development Reports in Vietnam, especially in the banking industry, is still in its initial stages, with many challenges in the process of implementing sustainable development and ESG governance such as legal framework, resources, data analysis capacity and especially the way to collect and process information effectively and transparently.

Therefore, the application of artificial intelligence (AI) and modern digital technologies is considered a key solution to help improve data management efficiency, enhance analysis and monitoring capabilities, and support decision-making in a timely and transparent manner.

Deputy Governor Pham Thanh Ha speaks at the seminar.

In his speech titled “Global Standards and the Role of AI in Banking Sustainability Reporting”, Mr. Mike Suffield - Director of Policy and Insights, ACCA Global, emphasized the transformative potential of AI, while warning of risks such as data bias, limited algorithmic transparency and the phenomenon of “greenwashing”.

Mr. Mike Suffield also recommended that AI can support the disclosure of sustainable development information in a more effective, meaningful and rigorous way, but it must be used ethically, transparently and in accordance with international frameworks...

At the conference, speakers addressed many topics of great interest today, such as the growing need for high-quality ESG disclosure, the ethical use of AI in sustainability reporting, and the integration of global sustainability standards into financial institutions in Vietnam.

Editor-in-Chief of Banking Times Le Thi Thuy Sen affirmed that this discussion took place in the context of the Party and State issuing many major policies, especially Resolution No. 57-NQ/TW on the development of science, technology, innovation and national digital transformation, along with Resolution No. 66-NQ/TW on sustainable development to 2030, with a vision to 2050.

In the process of implementing these Resolutions, the banking industry is identified as one of the leading forces in promoting sustainable finance, digital transformation and innovation. Integrating ESG criteria into business strategies not only contributes to improving the competitiveness of each credit institution, but also plays an important role in promoting green growth and sustainable development for the economy.

With useful sharing from the speakers, the seminar is expected to bring new and practical approaches in applying AI and big data to the process of building a Sustainable Development Report from collection, processing to analysis and recommendation.

This will be an important foundation for the Vietnamese banking industry to approach international sustainable development standards, while contributing to building a modern, transparent economy that effectively adapts to the digital age.

Source: https://nhandan.vn/ung-dung-ai-trong-bao-cao-phat-trien-ben-vung-linh-vuc-ngan-hang-post881241.html