Cathay United Bank (CUB) initiated a yearlong commemoration of its 20th anniversary in Vietnam through an ESG-themed conference, which attracted more than 80 corporate leaders eager to delve into potential avenues for sustainable growth within the nation.
Global trends, local challenges
In celebration of 20 years since opening in Vietnam, the Ho Chi Minh City office of Cathay United Bank (CUBHCM) organized an ESG seminar entitled “ESG: Challenges and Practices for Sustainable Growth.” This initiative underscores the bank’s enduring dedication to progress and environmental stewardship. With ESG factors becoming more influential in international business plans, this gathering served as a forum where sector professionals could explore emerging patterns, legal modifications, and real-world applications of ESG principles.
As part of Cathay Financial Holdings, which stands among Asia’s top financial entities, CUB has expanded its services well past conventional banking. By adopting the Equator Principles in 2015, CUB emerged as Taiwan’s pioneering bank in this regard, pledging adherence to global benchmarks for managing environmental and social risks. Such commitments have established CUB as a reliable ally for enterprises aiming to embrace sustainable practices.
Michael Wen, the Executive Vice President at Cathay United Bank, highlighted how the institution assists clients in understanding the complexities of environmental, social, and governance issues with tailored advice and extensive local expertise. “The swift economic expansion in Vietnam opens up numerous possibilities as well as sustainability hurdles,” he stated. “It’s crucial for companies, banks, and government officials to work together to achieve substantial, lasting transformation.”
|
|
Michael Wen, the Executive Vice President at Cathay United Bank, highlights the bank’s commitment to aiding clients through their ESG transformation journey. He emphasizes that collaboration is crucial for making significant progress toward sustainability goals in Vietnam. The photo provided by CUB illustrates this point further. |
At the seminar, Nguyen Hoang Nam, who leads ESG efforts at PwC Vietnam, highlighted that understanding of ESG concepts is still quite narrow within domestic companies. He mentioned that approximately 39% of Vietnamese small and medium-sized enterprises (SMEs) haven’t encountered ESG before, with more than 60% being unfamiliar with related laws and guidelines. Factors like financial limitations, unclear regulatory structures, and insufficient capabilities persistently impede advancements in this area.
He suggested that businesses should focus on internal ESG training, create robust data tracking mechanisms, collaborate with environmentally conscious financial organizations, and engage with sector groups to adopt leading strategies.
Useful frameworks and superior methods
Even with challenges, the adoption of ESG principles in Vietnam is becoming more prevalent. The government has launched the Green Growth Strategy for 2021–2030, indicating a nationwide effort towards sustainable economic growth. During the forum, key companies at the forefront of implementing and obtaining certifications in ESG were recognized, such as IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods, and Micro Electricity.
IDICO Industrial Park has adopted rooftop solar installations and water recycling at their facilities, along with developing social housing projects to draw talented workers. In parallel, Schneider Electric, committed to achieving zero-emission status by 2050, is pioneering advancements in clean energy and reducing reliance on fossil fuels within power grids as part of its strategy to minimize environmental impact.
|
|
The Cathay United Bank event held in Ho Chi Minh City included speakers from prominent firms involved in ESG implementation and accreditation such as IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods, and Micro Electricity. The image was provided by CUB. |
Partnering for sustainability
In 2024, Cathay United Bank was honored with approximately 90 esteemed accolades recognizing its outstanding performance in asset management, digital advancement, and environmental, social, and governance (ESG) initiatives. This acknowledgment solidifies its position as an innovative banking entity. Notably, it has been placed within the upper quintile according to the Financial Supervisory Commission’s criteria for sustainable finance.
Reflecting its dedication to Vietnam as a "second home,” CUB has enthusiastically supported environmental, social, and governance (ESG) initiatives nationwide. The company collaborated with the Asian Development Bank to fund Vietnam’s biggest onshore wind project in Ninh Thuan Province, which had an overall investment of $107 million.
CUBHCM It has also introduced a green CAPEX loan program aimed at financing eco-friendly development initiatives. The initial batch of factories funded through this scheme became the first in northern Vietnam to achieve LEED international green building certification.
|
|
CUBHCM Director Lu Wei Chieh (L, 6th position) stresses that they have examined genuine challenges and feasible concepts related to ESG and sustainable growth. The image is provided courtesy of CUB. |
Lu Wei Chieh, the General Manager of CUBHCM, mentioned that the seminar tackled practical ESG issues and provided genuine real-life solutions. He emphasized that regardless of whether it involved transitioning to renewable energies, developing strategies, or sharing direct business encounters, the core message remained consistent: collaboration is essential for achieving lasting transformation.
To kick off its 20th-anniversary celebration series, CUBHCM’s seminar highlights the institution's dedication to connecting individuals, concepts, and answers aimed at shaping a brighter tomorrow. Under the motto “Stronger as One,” CUB emphasizes that environmental, social, and governance issues represent a collaborative effort. This initiative calls upon enterprises, investors, and societies to unite in pursuing sustainable progress.
Post a Comment