Page 12 - Layout 1

COVER STORY

W e are committed to a broad range policy commitments will be integrated
of criteria commitments that ele-
into our investment approach across
vate our business, create value for fundraising, screening, and due diligence
our shareholders and investors, support on investments, managing assets, and exits.
our employees and customers, and show The integration process is guided and
respect to the local communities in which monitored by our ESG policy, which makes
we work. We believe that sustainability is reference to internationally-recognized
an essential part of our long-term success frameworks. In addition, we have estab-
as global corporate citizens. To be a respon- lished a specialized ESG Task Force, with
sible developer, we are committed to con- support from senior management and the
tinuously improving our Environmental, participation of all functions of the com-
Social and Governance (ESG) policy to pany. The ESG Task Force is led by our
meet or exceed evolving standards and the Head of Sustainability. We aim to build
expectations of our shareholders, investors, environmentally-friendly logistics facilities Mr. Chih Cheung,
customers, employees, and communities. within our portfolio, typically featuring founding managing Partner, slP
In recent years, ESG has become one green-building certification, solar-ready (sea logistic Partners)
of the major factors for foreign investors rooftops, energy-saving lighting, and ther-
when considering new investments. We mal insulation materials that optimize effi- expected. In addition, awareness about
believe that Vietnam, as a growing and ciency for customers. Such features are ESG should be encouraged and adopted
attractive destination in Southeast Asia, considered on a project-by-project basis in the business community. We expect the
should encourage ESG policies for future and subject to location and conditions. government to implement policies for busi-
sustainable development. SLP aims to be While other countries, especially in nesses with good ESG practices, such as
the best developer with ESG initiatives Europe and North America, have developed tax incentives, the promotion of environ-
and practices in Vietnam’s logistics market. and implemented ESG criteria to an mentally-friendly materials, research and
We believe a commitment to ESG policies advanced stage, ESG policy is relatively recommendations on climate change
is a long-term journey and requires a new in Vietnam. Hence, further guidelines impact, and the promotion of greater well-
holistic approach from the company. ESG and incentives from the government are being for the workforce in Vietnam. %

V ietnam and its government have
embarked on an ambitious tran-
sition journey, which was
announced by Prime Minister Pham Minh
Chinh at COP26. The financial sector has
an important role to play by sourcing and
distributing capital to facilitate projects
and investments that enable global decar-
bonization. According to a recent HSBC
report on ASEAN Sustainable Finance,
Vietnam’s issuance of green, social, and
sustainability debt reached $1.5 billion in
2021; five times higher than in 2020, Ms. Stephanie Betant,
recording exponential growth and under- Head of Wholesale Banking, HsBC Vietnam
lining how financial markets and corpo-
rates are shifting. Vietnam was also the
second-largest source of green debt in In this transformation, there are some the country in its transition to net zero.
ASEAN in 2021. critical resources and frameworks that are We have cooperated with an array of
Consumer trends are also changing, needed to build on the early success to leading organizations and governments to
making companies increasingly aware of bring momentum to the transition, includ- shape industry standards and principles.
emissions in their supply chain. In Europe ing awareness in the community, human For instance, in the infrastructure space,
and the US - major export markets for resources with appropriate knowledge we are working with the Climate Policy
Vietnam - sales growth of eco-friendly about environmental and social standards, Initiative, the International Finance Cor-
brands was 15 per cent higher than average technology and innovation solutions to poration (IFC), the Organization for Eco-
market growth, demonstrating that con- bring tangible measures to the transition, nomic Cooperation and Development
sumers are asking companies to offer more and the development of a legal framework (OECD), and the Global Infrastructure
sustainable products. This is in turn impact- and regulations to support and accelerate Facility to establish a consistent, globally-
ing the supply chain. According to our the transition that includes emission targets applicable labeling system for investments
research, 86 per cent of our corporate cus- and taxonomy for corporates. in sustainable infrastructure assets. While
tomers globally feel pressure to manage HSBC also has a deep-rooted commit- the impact of climate change is affecting
their supply chain in a more sustainable ment to supporting sustainable financing all of us, it may not yet be in the bottom
way, with customers being the main driver. by prioritizing financing and investment line of every company but will be soon
This will help companies build the business that supports our customers in all sectors enough. Corporates that take this head-
case for transformation. Helping build to transition to lower carbon emissions. on, building awareness in their companies,
transparency and finance this investment Our ambition is to arrange up to $12 setting operational objectives, and building
is where global banks come in, but once billion of financing and investment to Viet- the business case for it will be winners in
again consistent standards are critical. nam and its corporate sector to support the long run. %

10 | VIETNAM ECONOMIC TIMES | JULY 2022 www.en.vneconomy.vn