In a joint effort to create sustainable value for the community, HSBC and Gemadept Corporation signed a Sustainability Linked Loan (“SLL”) Agreement on May 28, 2024. This marks another “Green step” in Gemadept's development plan, securing access to Green capital and reaffirming HSBC Vietnam's commitment to supporting sustainable business practices in Vietnam.
Port operation and Logistics play the "backbone" role for the economy, serving as an important bridge in national and global trade. The growth rate of Vietnam's import and export in recent years, with total trade turnover in the first quarter of 2024 increasing by 15.5% compared to the same period last year, further affirm the great potential of these industries.
Currently, the manufacturing, import-export, port and logistics industries, … face increasingly demanding green requirements. Vietnam's main export markets are tightening regulations, illustrated by the EU's Carbon Border Adjustment Mechanism (CBAM). Similarly, the US is raising standards related to labor, environment, and intellectual property in its trade practices.
With 34 years of experience in operating the Port-Logistics ecosystem across key economic zones from North to South Vietnam, Gemadept prioritizes sustainable development goals throughout its business activities. Recognizing that business success aligns with the community's well-being, the company actively collaborates with the Vietnamese government and international partners to achieve Net-Zero emissions by 2050, contributing to environmental protection and combating climate change.
As part of those efforts, on May 28, 2024, Gemadept and HSBC Bank Vietnam signed a Sustainability Linked Loan Agreement. This marks another “Green step” in Gemadept's development plan, securing access to Green capital and reaffirming HSBC Vietnam's commitment to supporting sustainable business practices in Vietnam.
This event also marked the first time HSBC successfully arranged a sustainable linked loan for a Vietnamese port and logistics company. To qualify for this loan, Gemadept not only managed to demonstrate positive business results, but also underwent HSBC's strict sustainable credit assessment process while establishing clear and specific goals within Gemadept's green and sustainable development strategy. Consequently, Gemadept is currently and will continue to measure and report greenhouse gas emissions at ports within scopes 1, 2, 3, while also aiming to meet the fundamental standards regarding the criteria for green ports in Vietnam issued by the Vietnam Maritime Administration.
Speaking at the Signing Ceremony, Mr. Nguyen Thanh Binh, CEO of Gemadept said: "The Company always considers economic development and minimizing environmental impacts as two parallel goals so that the business and the community can achieve sustainable and lasting development. The SLL that HSBC and Gemadept signed today not only has financial significance but is more importantly an affirmation of the Company's commitment to the Sustainable Development Strategy, while also conveying a positive message to their customers, partners, investors and the community. In the coming time, the Company will continue to make more efforts, contributing to the greening process of the maritime industry and the economy."
Sharing about this partneship, Mr. Ahmed Yeganeh, Country Head of Wholesale Banking, HSBC Vietnam, shared: "HSBC Bank is very proud and happy to cooperate with Gemadept. This credit is a testament to HSBC's ability to arrange green, sustainable capital, with advanced and effective financial solutions, meeting the needs of domestic businesses. I believe that this transaction will strengthen the strategic cooperation relationship between HSBC Vietnam and Gemadept in the future."
At the Signing Ceremony, representing HSBC Vietnam, Mr. Surajit Rakshit, Country Head of Global Trade and Receivables Finance, shared: “Both HSBC and Gemadept teams have collaborated very closely, from the initial discussion of how to set the appropriate KPIs to the stage where we finally agreed on achievable KPIs in line with Gemadept’s sustainable development strategy. The ceremony today is a step forward for both organisations, distilling from our continuous and determined efforts in helping Vietnamese corporates grow bigger and more sustainably. This serves as a strong foundation for HSBC and Gemadept to further develop our strategic partnership in future.”
Driven by a pioneering spirit and a profound awareness of corporate social responsibility, Gemadept takes concrete actions to protect the environment and address climate change. Specifically, the company collaborates with the British Standards Institution and Bureau Veritas Certification Vietnam to implement training, auditing, and reporting of greenhouse gas emissions according to the international standard ISO 14064-1; Conducts assessments of environmental management systems, safety, and occupational health; Implements plans to assess "Green Port Standards" at Gemadept's ports including Dung Quat Port, Nam Dinh Vu Port, Binh Duong Port, and Gemalink Deepsea Port according to the TCCS 02:2022/CHHVN standard issued by the Vietnam Maritime Administration; Meanwhile, it promotes the use of renewable energy and launches initiatives for reforestation efforts…
The sustainable linked loan agreement also marks a new chapter in the cooperative relationship between the two parties, fostering a greener future for both businesses and generations to come./.
