HSBC corporates with Vietnam’s environment ministry to realize sustainability goals

HSBC Vietnam on November 9 signed a memorandum of understanding (MoU) with the Ministry of Natural Resources and Environment (MONRE) to collaborate on the Environment, Social and Governance (ESG) agenda.

Minister of Natural Resources and Environment Tran Hong Ha (R) and HSBC Group's Regional CEO for Middle East, North Africa, and Turkey Stephen Moss.

The ceremony – a COP27 side event - was attended by Minister of Natural Resources and Environment Tran Hong Ha and Stephen Moss, Regional Chief Executive Officer – Middle East, North Africa, and Turkey, HSBC Group.

Under the MOU, HSBC Vietnam will help MONRE build a practical approach to realize its strategies in line with Vietnam's net zero emissions targets, as well as build a framework that unlocks international funding sources to support these targets.

In particular, the Bank will focus on contributing to the implementation of the National Strategy on Climate Change to 2050 by sharing best practices and experiences to support the Vietnamese Government in the development and completion of the framework and policies to draw the potential funding resources from international financiers and investors.

HSBC Vietnam will contribute knowledge and experience in developing ESG products, financial mechanisms, solutions, and programs including international principles and standards on sustainable finance; development of the framework for a USD Sovereign and Sovereign Agency Green Bond; development of local carbon trading market and related financing mechanisms.

In addition, the bank will also assist Vietnam in building human resources and capabilities needed for sustainability, as well as taxonomy - defining sustainable assets and financial products by participating in the development of the second version of the ASEAN Taxonomy for Sustainable Finance to identify and classify sustainable economic activities in the ASEAN region.

Another key objective is for HSBC to support MONRE in developing toolkits and guidance for businesses across sectors to assess their emission levels, and transition risks and to develop pathways to a lower greenhouse gas emission economy.

Minister Tran Hong Ha highly appreciates the commitment of HSBC to the sustainability of Vietnam as well as its contribution to support the country realize its climate commitment made at CO26. "Our fight against the impacts of climate change is a major challenge that needs the participation of the whole society. Every organization or business with strong capabilities, expertise, knowledge, and experience in sustainability can play an important role in helping Vietnam transition to a low-carbon economy,” he said.

According to him, the collaboration between MONRE and HSBC can open up a world of opportunity for the Vietnamese Government to leverage resources from financial institutions, industry associations, and technical experts, and encourage more businesses to join the journey.

Last November, Vietnam made a bold commitment at COP26 to reach net zero by 2050. It is, therefore, essential for the country to call for the participation of both public and private sectors to realize its ambition.

Tim Evans, CEO of HSBC Vietnam, said: “Our partnership with the Government of Vietnam is yet another way that we can help contribute to arresting the negative impacts of climate change. We are very pleased to work alongside the MONRE on the journey of bringing Vietnam closer to its goal of reaching net zero by 2050 and thereby realizing its ambitious commitment made at COP26.”

Following Vietnam's commitment at COP26, HSBC Vietnam pledged up to US$12 billion to green the country by 2030. The bank will mobilize funds from local and international financial markets to offer a wide range of sustainable solutions in green finance, debt finance, supply chain, trade, green deposits and investment products. HSBC will incorporate careful risk assessment and international green finance standards to deliver these solutions.