On October 14, 2019 The Phnom Penh Post covered the publication of the second Global Progress Report of the International Finance Corporation (IFC) facilitated Sustainable Banking Network (SBN).
According to the report, “Vietnam is among 38 emerging market economies to have adopted significant banking reforms to boost development and combat climate change.
These reforms require banks to assess, manage and report on environmental, social and governance (ESG) risks in their lending operations and offer market incentives for banks to lend to green projects.
Of the 38 countries, 22 – which include Cambodia – have adopted national sustainable finance policies and voluntary principles, seven of which were launched this year alone. The report also captures the progress made by 14 countries to actively grow their green bond markets.
Last year, the State Bank of Vietnam (SBV) approved the green bank development programme and an action plan to realise Vietnam’s sustainable development goals by 2030. The regulator has set two targets by 2025.
First, all financial institutions will set up an environmental and social (E&S) management system and integrate E&S risk assessment into credit risk assessment.
Second, at least 10 to 12 banks will establish specialised units for E&S risk management and green finance.”
You may read the article on The Phnom Penh Post internet site.