CEO Nguyễn Thị Trà My: PAN approach to partners and green finance at COP 28

(Dubai, 01.12.2023) Within the framework of the Global Climate Action Summit at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), witnessed by Prime Minister Phạm Minh Chính, The PAN Group and Standard Chartered Bank Vietnam have recently announced the signing of a memorandum of understanding to collaborate on the implementation of ESG financial solutions and services. This partnership is a key part of PAN's strategic approach to green finance and partners, which aims to secure funding for forthcoming development investment initiatives.

Over a decade of investment in Agriculture and Food, PAN Group has not only invested in projects systematically and with a 'speak the truth, do the truth' approach but also remains dynamic in seeking solutions and resources for sustainable development, bringing harmonious benefits to the environment and society. This has been and is being materialized by the Group through projects with many green elements. Examples of these include: expanding the area and production capacity for organic cashew nuts using new energy-saving technology, reducing the need for chemicals, and creating jobs for ethnic minorities involved in the value chain of production; upgrading the pangasius and by-products processing line to ensure that waste into the environment is minimized, practicing circular economy, and further improving wastewater treatment capabilities.

Attending COP 28, the CEO of PAN Group, Ms Nguyen Thi Tra My noted that, since PAN places a high priority on sustainable development, the Group is particularly interested in the opportunity to reach out to partners and green financial solutions through exchanges and cooperation with experienced organizations and businesses worldwide. This helps the Group carry out its projects by providing crucial financial resources and expertise.

With the participation of over 130 Heads of State and Prime Minister from various countries to discuss and seek long-term solutions in response to climate change, COP28 is regarded as the most important multilateral conference on climate change this year. It is also anticipated to be the most comprehensive COP meeting, fostering collaboration and dialogue among regions worldwide to identify viable and practical resolutions to the climate crisis.

For its part, since Vietnam's announcement at COP26 (in 2021) of its commitment to reach net-zero emissions by 2050, the Vietnamese government, along with its ministries, sectors, and localities, has taken bold and specific efforts to achieve this goal.

Along with the government's efforts towards Vietnam's green commitment, an increasing number of businesses and financial institutions are incorporating Environmental, Social, and Governance (ESG) principles in their investment activities and encouraging capital flows towards sustainable business practices. The ESG transition will not only be a choice but will certainly become a critical survival factor for businesses.

The State Bank of Vietnam reports that since 2017 green credit has seen an average annual growth rate of 23%, with agriculture being one of the two sectors attracting the most green capital, accounting for 31% of the total green credit outstanding. Experts estimate that to achieve the net-zero emissions target by 2050, Vietnam needs to mobilize resources up to 144 billion USD. This poses the challenge of figuring out how to unlock green capital flows.

According to the signed memorandum of understanding, Standard Chartered Vietnam will assist PAN in accessing financial solutions and services based on Environmental, Social, and Governance ("ESG") considerations in order to meet the financing needs of the Group's sustainable development projects. These projects will have the chance to access green credit lines and sustainable linked loans in medium and long term with various supports in terms of interest rates and disbursement procedures.

In line with this, the green credit-funded projects will also be subject to recurring evaluations that will verify adherence to Standard Chartered Vietnam's sustainable financing framework and specific ESG criteria. Additionally, this presents The PAN Group with another excellent chance to further align its sustainable development strategy with global practices and guidelines.

This collaborative effort presents mutually beneficial opportunities. Specifically, the PAN Group can expand its financial options for the Group's development projects and subsidiaries through ESG-related solutions. Meanwhile, Standard Chartered Vietnam can accompany and continue to support PAN's green projects in the future. This, in turn will help Vietnamese businesses gain access to the green finance market, which reinforces the Government's strong commitment to sustainable development goals, emission reduction, and carbon neutrality.

Previously, on November 27, just before the COP28 Conference, the Prime Minister officially approved the project "Sustainable development of one million hectares of high-quality, low-emission rice cultivation linked to green growth in the Mekong Delta region by 2030". This project has a profound impact on the organization of rice value chain production, not only contributing significantly to Vietnam's carbon neutrality goal by 2050 but also helping to improve the income and living standards of farmers.

In accordance with the government-level scheme, the PAN Group has been carrying out parallel sustainable development projects in the agricultural sector. Recently, the Group formally collaborated with the People's Committee of Dong Thap Province to develop and carry out the "Improving Rice Farmers' Income" project in the province (1). The project aims to form and develop a multi-value rice chain, reduce greenhouse gas emissions, and increase farmers' income by 30% by 2025. The results attained in the project are expected to be replicated and implemented in other provinces across the country.

Members of the Group's agricultural business, including Vinaseed, VFC, and Vinarice, are working with a number of respectable partners to establish a closed-loop rice value chain in the Mekong Delta. This includes supplying quality input materials, providing standard farming solutions, guaranteeing the purchase of output products, processing, packaging, and branding for distribution. In the initial phase, the value chain is implemented on a model scale, and then it will be evaluated and expanded based on the effectiveness attained in each area.

Additionally, many member companies of the PAN Group are also involved in World Bank, SNV, and other projects that support addressing climate change and promote sustainable agricultural development in the Central Highlands and the Mekong Delta region.

The Group added that sustainable development initiatives are currently a top priority and they will continue to fulfil their recent commitments in the agriculture through specific action plans and collaborations with relevant parties./.