PUBLIC DISCLOSURE OF INFORMATION REGARDING SOCIAL AND ENVIRONMENTAL RISK MANAGEMENT IN CREDIT GRANTING ACTIVITIES

1.    MSB has issued a Framework Policy for environmental and social risk management in credit granting activities, along with internal regulations and procedures. This policy details the guidelines and processes that MSB will follow, as well as the tools that will be used to assess and evaluate environmental and social risks in MSB's credit granting activities in accordance with Circular No. 17/2022/TT-NHNN and relevant international practices.
(For details, refer to the list of references and the list of applicable legal regulations in Vietnam and international standards)

2.    MSB will continuously strive to ensure that environmental and social risk management practices are effectively implemented in its credit granting activities, with particular focus on the following objectives:
a) Ensuring that all credit granting activities performed by MSB comply with legal regulations, the environmental and social risk management policies outlined in this document, and relevant internal regulations;  
b) Ensuring that assessments of environmental and social risks are integrated into credit decision-making processes, risk management procedures, and customer rating models in MSB’s credit granting activities; 
c) Ensuring that all credit granting activities requiring environmental and social risk assessment and management are reviewed according to the environmental and social risk management procedures in the credit granting process;
d) Committing not to granting credit to customers on the exclusion list;
(For details, refer to the exclusion list)
e) Ensuring that all projects under operation comply with environmental and social risk management policies on a continuous basis throughout the term of the credit granted by MSB;
f) Ensuring transparency in MSB's credit granting activities.

3.    MSB conducts the assessment and management of environmental and social risks in credit granting activities according to the following minimum steps:
a) Screening the exclusion list;
b) Classifying environmental and social risks; 
c) Inspecting/assessing environmental and social risks;
d) Developing corrective action plans for environmental and social risks and post-credit granting controls;
e) Monitoring and reporting on environmental and social risks.
(For details, refer to the environmental and social risk monitoring report after credit granting)

4.    The environmental and social risk management policies and procedures in credit granting activities are trained to all staff involved in the credit granting process and communicated to all MSB employees at each stage of implementation. 
The details of the implementation steps for the social and environmental risk management procedure are illustrated in the diagram below.