HSBC helps Vietnam realise net zero emissions targets

Minister of Natural Resources and Environment Tran Hong Ha (R) and a representative of HSBC Asia Pacific exchange a Memorandum of Understanding to collaborate on the Environment, Social, and Governance agenda. (Photo: Vietnam+)

Hanoi (VNA) - HSBC Bank (Vietnam) Ltd. and the Ministry of Natural Resources and Environment (MoNRE) on November 8 exchanged a Memorandum of Understanding (MoU) to collaborate on the Environment, Social, and Governance (ESG) agenda.

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, and witnessed by representatives of MONRE and HSBC Asia Pacific's delegation attending COP27.

The MoU states that HSBC Vietnam will assist MoNRE in building a practical approach to realising its strategies in alignment with Vietnam's net zero emissions targets. It also aims to build a framework that unlocks international financing sources to support these goals.

In particular, the bank will focus on four key objectives, including contributing to the implementation of the National Strategy on Climate Change to 2050. It will enable this through sharing best practices and experiences to support the Government of Vietnam in developing and completing the framework and policies, to unleash 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. It will allow for the development of the framework for a USD Sovereign and Sovereign Agency Green Bond, and the development of a local carbon trading market and related financing mechanisms.

The plan will support Vietnam to build the human resources and capabilities needed for sustainability. It will also aim to build the taxonomy and defining sustainable assets and financial products by participating in developing the second version of the ASEAN Taxonomy for Sustainable Finance to identify and classify sustainable economic activities in the ASEAN region. HSBS will contribute to support the Ministry of Natural Resources and Environment to develop toolkits and guidance for businesses across sectors to assess their emission levels, transition risks and to develop pathways to a lower greenhouse gas emission economy.

The MoU marks another step for HSBC in the execution of its commitment to accompany Vietnam on the journey towards its long-term sustainability goals. Last November, Vietnam made a bold commitment at COP26 to reach net zero by 2050. The country needs to call for the participation of both public and private sectors to realise its ambition.

"We highly appreciate the commitment of HSBC to the sustainability of Vietnam as well as its contribution to support the country realise its climate commitment made at CO26," said Minister Hong Ha. "Our fight against the impacts of climate change is a major challenge that needs the whole society's participation. Every organisation 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.

"Addressing climate change has become more critical than ever," said Tim Evans, CEO of HSBC Vietnam. "This is especially true in Vietnam, which is one of the countries most vulnerable to damage that climate change has on our planet. As both a bank with over 150 years of association with Vietnam and as an international bank that leads the way in sustainability, we are aware of our role to take action to protect our communities, businesses and natural environment from the damaging effects of climate change. 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 Ministry of Natural Resources and Environment on bringing Vietnam closer to its goal of reaching net zero by 2050 and thereby realising its ambitious commitment made at COP26."

Following Vietnam's commitment at COP26, HSBC Vietnam committed to arranging up to 12 billion USD to help the country's transition by 2030. The bank will mobilise funds from local and international financial markets to provide sustainable solutions in green finance, debt finance, supply chain, trade, green deposits, and investment products. HSBC incorporates prudent risk assessment and international green finance standards in providing these solutions./.