Fair Finance Vietnam (FFV) launched the first-of-its-kind assessment on ten commercial banks in Vietnam in 2020.
Using the Fair Finance Guide Methodology, FFV assessed the publicly disclosed policies of ten Vietnamese commercial banks on their Environmental, Social and Governance (ESG) commitments. Twelve assessed themes include: Climate Change, Power Generation, Nature, Gender Equality, Human Rights, Labor Rights, No Investment in Arms, Financial Inclusion, Consumer Protection, Anti-Corruption, Transparency & Accountability, and Taxes.
The assessment highlights that the ten commercial banks are at a very nascent stage concerning ESG policy commitments. That means these ten banks have just entered the "race to the top".
Recommendations have been made to commercial banks and banking regulators to nudge them towards ensuring their ESG commitments align with international conventions and standards such as the United Nations Guiding Principles on Business and Human Rights (UNGPs).
FFV’s policy assessment and the emerging recommendations help in guiding Vietnamese commercial banks to fulfil their environmental and social responsibilities, enhance their position in the ASEAN and global markets, and attract responsible investors.