PUBLIC DISCLOSURE OF INFORMATION REGARDING MSB'S GREEN TAXONOMY

In order to progressively achieve sustainable development goals and green the investment portfolio, MSB has issued the List of Green Sectors in credit granting activities in accordance with Decision No. 398/2024/QĐ-TGĐ4 dated January 16, 2024.

MSB’s Green Sectors List has been developed based on the reference to the Draft Decision on Environmental Criteria and Certification for Green Credit Projects, Green Bond Issuance by the Prime Minister, and the Green Credit Methodology of the Dutch Development Bank (FMO). Based on this, MSB defines Green Credit as the following two scopes:

I. Green Credit refers to credit granted to customers whose project finances belong to the following 9 sectors:
1. Energy:
- Solar power, wind power, geothermal energy, biomass energy, marine energy, green hydrogen, bioenergy, etc.
- Infrastructure development for renewable energy, retrofitting plants to improve efficiency, etc.
2. Transportation: Procurement of low-carbon vehicles, development of infrastructure for low-carbon transportation, etc.
3. Water Resources: Water extraction, treatment, and supply; desalination; water conservation, etc.
4. Construction: Construction and retrofitting of green buildings, carbon emission reduction projects.
5. Agriculture, Forestry, Fisheries, and Biodiversity Conservation:
- Sustainable agriculture, high-tech agriculture, etc.
- Afforestation and reforestation; forest conservation; protection and preservation of ecosystems and biodiversity; eco-tourism, etc.
- Sustainable aquaculture and fisheries, etc.
- Pollution treatment, land remediation, restoration; collection and treatment of agricultural waste, etc.
6. Manufacturing and Processing: Energy-efficient equipment manufacturing; low-carbon technology development equipment; low-carbon vehicles; environmental protection machinery and equipment; hydrogen technology equipment.
7. Waste Management: Waste collection, classification, treatment, and recycling; wastewater treatment; air pollution control.
8. Information, Communications, and Services: Research, development, and application of environmental protection technology; environmental education; application of science and technology for efficient resource use and climate change adaptation; environmental protection services and climate change response.
9. Green Transformation: Electricity, heat, or cooling production from gas; sustainable seafood processing; energy-efficient steel, cement, and iron production.
(For details, refer to the link)

II. Green Credit also refers to credit granted for investment projects or business operations in industries or sectors where customers hold relevant green certifications related to their respective sectors. MSB has compiled a list of certain certifications that meet the green sector standards for textiles, seafood, agriculture, forestry, and green construction industries.
(For details, refer to the link)

To have a loan confirmed as green at MSB, in addition to the standard credit evaluation process, MSB will implement two confirmation steps to verify whether the loan qualifies as Green Credit. The first confirmation step is performed by the business unit based on the issued List of Green Sectors. The second step involves consulting with the Environmental and Social Risk Management Department, which specializes in Green Credit to confirm the loan’s eligibility.

Immediately following the issuance of the List of Green Sectors in credit granting activities, MSB launched two Green Credit Solution packages totaling VND 3,500 billion in February 2024. To implement these green credit packages with preferential interest rates, MSB has organized training sessions for all staff involved in the credit granting process and communicated this internally to all MSB employees.