Most Vietnam banks adopting ESG practices

Green financing: A woman walking in the rain in Hanoi. Some banks have issued green credit and sustainable loan framework to manage loans for projects in green and emission-reducing sectors. — AFP

HANOI: Some 80% to 90% of banks have partially or fully applied environmental, social and governance (ESG) practices in their operations, says a State Bank of Vietnam (SBV) official.

At a forum on promoting ESG practices in the Vietnamese banking industry, Pham Thi Thanh Tung, deputy director of the SBV’s Department of Credit for Economic Sectors, said nearly 50% of banks have established a risk management division for environment-protection lending.