ASPIRATION NORMAL - Bảo Việt

BAOVIET HOLDINGS

2020SUSTAINABILITY REPORT

ASPIRATIONNORMALNew

| 72 Tran Hung Dao Street, Hoan Kiem District, Hanoi | (+84 24) 3928 9999 / 3928 9898 | (+84 24) 3928 9609 / 3928 9610 | www.baoviet.com.vn

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Facing the unpredictable challenges of natural disasters and epidemics, especially with the impact of the Covid-19 pandemic last year on the economic, political, customer behavior, needs and business operations, in the “new normal” state, how businesses prepare themselves for a “new aspiration” to quickly adapt and respond to changes in the new state is extremely important. With Baoviet, we have prepared ourselves with a proactive and flexible aspiration, constantly learning, applying, creating, innovating the corporate governance and enhancing digital transformation instead of restricting in the traditional ways. Baoviet has pioneered and mastered technology, joined the flat world to adapt with changes in

the new state to continuously grow and develop sustainably.

2020 SUSTAINABILITY REPORT

#MULTI PLATFORM INTEGRATED#MODERN TECHNOLOGY#ENVIRONMENTALLY FRIENDLY#ESG INTEGRATION#INTERACTIVE REPORT

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GUARANTEED BY BAOVIET HOLDINGS’ INTERNAL AUDIT

on non-financial indicators

ALIGNING THE 17 WORLD’S SUSTAINABILITY GOALS with Corporate’ activities

POWER BI APPLICATION Business analytics

solution that enables data visualization

QR CODE Better experiences for readers by developing

multi-platform

GLOBAL REPORTING INITIATIVE

Sustainability reporting in accordance to GRI standard

CSI Evaluation standard for Vietnam sustainabilty enterprise index

APPLY GRI DIGITAL PLATFORM

for reporting

INTEGRATING ESG in Strategy, Management, and Operation towards Sustainable Development

Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION

4 5Sustainability report 2020 NEW NORMAL - NEW ASPIRATION

4

VALUE CREATION FROM SUSTAINABLE DEVELOPMENT MODEL

BUSINESS CATEGORIES

NEW MARKETS

MARKETING AND

ECO SALESPOLICY

MANAGEMENT

SUSTAINABLE OPERATIONS

OPERATION RISK

MANAGEMENT

SUSTAINABLE VALUE CHAINS

REPUTATION MANAGEMENT

NEW PRODUCTS

Investment decisions at the portfolio level

based on sustainability considerations

Taking sustainability-related opportunities in new

marketsegments

Reduce operating costs through improved internal resource

management

Risk management of incidents that hinder operations (from resource scarcity, changing environmental impacts or

community risks)

Increase revenueand increasemarket share

throughsustainability

marketing

Reduce risks and seize

opportunities from

regulations

Reduce costs andincrease

product value through

sustainable supply chain

Reduce reputational risk and gain brand

credibility

Development of sustainability to meet customer demand

INCO

ME ON

CAPIT

AL

ADMINISTRATION

RISK

GROWTH

ASPIRATIONNORMALNew


6 7

CONTENTSCONTENTS

214220228236244258262

GRI

400

184190198

GRI

300

146156160166178

GRI

200

GRI

100

274280

282

2020 SUSTAINABILITY REPORT


8 9

In such state, how to adapt and grow?

In order to convey a topical message, covering economic and social life in the past year, Baoviet chose “New normal – New Aspiration” as the key message throughout the Sustainability Report 2020. Faced with unpredictable challenges of natural disasters and pademics, especially the impact of the Covid-19 pandemic in the past year on the economic, political, behavioral, customer needs and ways of transportation, management, business performance of enterprises during the “new normal” state, how should enterprises prepare themselves for a “New Aspiration” to quickly adapt and respond to changes in the new state of business is very important.

With Baoviet, we have prepared ourselves with a proactive, flexible aspiration, constantly learning, applying, creating, innovating the way of governance, enhancing digital transformation, instead of restricting in the traditional ways, Baoviet has pioneered and mastered technology, joined the flat world to adapt to changes in the new state to continuously grow and develop sustainably.

The Sustainability Report 2020 seeks to clearly portray people’s lives in the new normal and with a new aspiration to confront challenges and possibilities.

The COVID-19 pandemic occurred, causing the whole world to wobbled, impacted and change the political, economic and social structure. The pandemic has not yet ended, but

almost all agree that life in the post-COVID-19 period will be very different from before, which is life in the

“NEW NORMAL”


10 11

During the corporate operation, Baoviet understands that when the business changes or balances the consumption of energy sources can partly help reducing the environmental impacts. We believe that with this small action, when being communicated and spreaded in the business community, will bring drastic changes and contribute to rebalance of Vietnam ecological environment.

GRI

100GENERAL DISCLOSURE

REPORT OVERVIEW

MANAGEMENT APPROACH

GENERAL INFORMATIONGRI

101

GRI

102

GRI

103

Facing the global challenges from climate changes, wars, epidemics, especially the recent outbreak of Covid-19 pandemic, countries and businesses have been exposed to risks and drastically reduced growth. Baoviet believes that a sustainable business model can help businesses to cope with risks, adjust their operational management to optimize resources and overcome difficult times for long-term sustainable development.

102-1102-13GRI General information

102-14102-15GRI Sustainable development strategy

102-16102-17GRI Ethics and integrity

102-18102-39GRI Sustainable corporate governance

102-40102-44GRI Sustainable stakeholders’ engagement

102-47GRI Materiality identification

14 15GENERAL INFORMATIONSustainability Report 2020 NEW NORMAL - NEW ASPIRATION

MAPPING SDGS AND GRI STANDARDSIN THE MANAGEMENT APPROACH OF MATERIALITY

On the basis of comparing and mapping GRI Standards with Global Sustainable Development Goals (SDGs), enterprises can identify key topics and manage the level of cohesion between activities of enterprises with SDGs objectives, at the same time measuring the results of implementation of Sustainable Development Strategy of enterprises. Accordingly, Baoviet has applied the 05-step process under the guidance of SDG Compass (SDG Compass) to identify and manage material issues; reporting and monitoring the process of realizing the commitments to sustainable development under SDGs and GRI Standards more effectively.

GRI 302: ENERGYBaoviet always focuses on minimizing the use of energy and natural resources with a view to reduce greenhouse gas emissions and other environmental impacts.

GRI 401: EMPLOYMENTBaoviet understands that human resources are keys to sustainable development of a company. In our human resource mangement strategy, we focus on developing and training in order to develop high quality skill human resources; investing in a professional and attractive working environment for attracting talents.

GRI 403: OCCUPATIONAL HEALTH AND SAFETYBaoviet understands that for an organization to succeed and fulfill its vision, it depends on human force with determination and consensus for unified goal. Baoviet therefore always ensures benefits and safe working environment for employees while working at the location.

GRI 305: EMISSIONS, EFFLUENTS AND WASTEWaste control is the next measure of environmental protection applied to Baoviet buildings in Hanoi.

GRI 307: ENVIRONMENTAL COMPLIANCEBaoviet Holdings minimizes our impact on the environment through pollution control, waste treatment, recycling and compliance with environmental regulations.

GRI 404: TRAINING AND EDUCATIONThe integration trend of Vietnam in the global economy is an opportunity and a challenge at the same time in order to maintain and set more achievements. As human resources quality improvement is an evitable trend, Baoviet invested in a high quality labour force to increase our competitive advantage.

GRI 405: DIVERSITY AND EQUAL OPPORTUNITYRegarding employee structure, Baoviet maintains a proper ratio of, managers and staff to optimize the company management and corporate governance. Baoviet’s management team always has female members.

GRI 413: Local communitiesWith the nationwide business network, Baoviet brought benefits to local communities by investing in community projects to enhance local residents’ life standards both in physical and mental aspects, create jobs, narrow down the gap between urban and rural life, and improve infrastructure.

GRI 416: CUSTOMER HEALTH AND SAFETYCustomer health and safety impacts of products are assessed for improvement in initial life cycle stages from development of product concept and research and development to provide effective protection scheme.

FS7: SERVICES AND PRODUCTS DESIGNED TO DELIVER SOCIAL BENEFITS By determining the monetary value of products and services designed to deliver the social benefits that help Baoviet control the proportion of investment in community activities in a reasonable way.

GRI 201: ECONOMIC PERFORMANCEBaoviet determined that a sustainable development strategy is based on a well business performance with all economic targets being fulfilled, bringing long lasting benefit to customers, shareholder, employees and the community.

GRI 202: MARKET PRESENCEBaoviet has rolled out and maintained a salary policy that respects the internal equality and promotes the competitiveness in terms of total revenue on target market.

GRI 203: INDIRECT ECONOMIC IMPACTIn order to achieve substainable development and contribute to the society, Baoviet has made great efforts to accomplish social targets such as mitigation losses caused by natural disasters, creating jobs and developing local economy.

GRI 204: PROCUREMENT PRACTICESIntegrating sustainability issues in procurement, investment and service use decisions helps Baoviet stick to a more sustainable goal, especially in relation to the environment.


SCOPE OF REPORT

Including KPIs of the entire Group, including Parent Company (Baoviet Holdings) and subsidiaries. Report period: 01/01/2020 - 31/12/2020

GRI

101

REPORT OVERVIEW

The Report reflects the key activities of Baoviet Holdings and other subsidiaries of Baoviet (hereinafter referred to as “Baoviet”) related to Sustainability issues in 2020. Baoviet’s management approach to sustainability based on our longterm economic development objectives and in corporate with social development and environmental protection objectives.

Baoviet proactively shares our sustainability content to stakeholders in order to understand their concerns and interests. We continue to evaluate these concerns in relation with current business operation and sustainability development strategy to determine key sustainability materialities and base on them to review and improve the contents of the report.

For Baoviet, making Sustainability Reports on the other hand help us to review the strategy for sustainable development as well as to reevaluate the activities undertaken by the company during the year. The report is based on the criteria of the Global Initiative for Report

Baoviet’s Sustainability Report 2020 continues to apply the latest reporting standard - GRI Sustainability Reporting Standards of the Global Reporting Initiative. The Report Structure is clearly presented with 04 main chapters: GRI 100 General information; GRI 200 Economic standards; GRI 300 Social standards; GRI 400 Environmental standards and specific indicators with additional reporting criteria for the financial sector (G4-FS7).

As a pioneer in implementing the Sustainability Report under the GRI Sustainability Reporting Standards, Baoviet desires to affirm its efforts to realize its commitment to long-term and sustainable values. east, investors and stakeholders, and at the same time contribute to promoting sustainable business in Vietnam.

The GRI Standards set is an upgraded version of the GRI4 Guidelines and is designed to help businesses make reporting more convenient, transparent and efficient. Accordingly, the GRI Standards are compatible with the global standards for information disclosure of economic, social and environmental impacts, thereby unifying the means of communication between businesses with stakeholders

Initiatives (GRI), which has the most comprehensive, complete and systematic approach until now. This reporting system has helped Baoviet to develop specific KPIs in each development area, identify key issues, and ensure stakeholder harmony, and conduct monitoring and evaluation. Communicate systematically.

Through the implementation of sustainability reporting, the enterprise also recognizes and evaluates social and environmental contributions, thus helping to balance future business plans for development purposes. Sustainability of business and society.

PRINCIPLES APPLIED

UNIVERSAL STANDARDS TOPIC-SPECIFIC STANDARDS

Report Overview

GRI101

General Disclosure

GRI102

Management Approach

GRI103

Kinh tế

GRI201

Kinh tế

GRI201

Kinh tế

GRI201

Economic

GRI200

Môi trường

GRI302

Môi trường

GRI302

Môi trường

GRI302

Environmetal

GRI300

Xã hội

GRI400

Xã hội

GRI400

Xã hội

GRI400

Social

GRI400

GRI Standard and GRI G4 New modular structure

ECONOMIC GROWTH SOCIAL RESPONSIBILITY ENVIRONMENT PROTECTION

New modularstructure

1

New format with clearer requirements

2

Added content clarications

3

Flexibility and transparency applied

4

Upgraded overall editing

5

For further questions and recommendations related to the Sustainable development activities of Baoviet as well as the contents of the Report, please contact us at the following information:

Your opinions would facilitate Baoviet in capturing concerned issues of stakeholders in a deep and timely maner in order to make consistent decisions, improve for the report content, and ensure the benefits of stakeholders.

Mr. DO TRUONG MINHMember of the Board of Directors Chief Executive Officer of Baoviet Holdings

+84 439289999

[email protected]

Baoviet Holdings, 72 Tran Hung Dao Street, Hoan Kiem District, Hanoi

CONTACT

DEFINING REPORT CONTENT

• Stakeholder Engagement• Sustainability Context• Marteriality• Completeness

DEFINING REPORT QUALITY

• Accuracy• Balance• Clarity• Comparability• Reliability• Timeliness

REPORTING PRINCIPLES


HoldingsTẬP ĐOÀN BẢO VIỆT

THE SOCIALIST REPUBLIC OF VIETNAMIndependence - Freedom - Happiness

Management’s Responsibility

The Management of Baoviet Holdings is responsible for the preparation and presentation of Baoviet Group’s Sustainability Report 2020 in accordance with the Sustainability Reporting Standards 2016 and the Financial Services Sector Disclosures of the Global Reporting Initiative (GRI). The Management is also responsible for the design and implementation of internal controls which are determined to be necessary to ensure the fairness of information, data presented in Baoviet Group’s Sustainability Report 2020.

Inspection - Internal Audit’s Responsibility

The Inspection - Internal Audit’s responsibility is to provide independent and objective opinions on selected Sustainability indicators 2020 based on procedures stipulated in the Decree No. 05/2019/ND-CP dated 22 January 2019 on Internal audit, Regulations on Internal audit of Baoviet Holdings, the practice guidance for International Standards for the Professional Practice of Internal Auditing and international practices. These regulations require our internal auditors to conform with the Code of Ethics and adopt the risk-based methodology in planning and performing the engagement to express our conclusions.

The engagement was primarily based on interviewing and performing analytical procedures, reconciliations of data.

Assurance results have been discussed with the Management and the Head of related Divisions/ functional units.

Based on existing resources, the Inspection - Internal Audit has provided limited assurance service for selected Sustainability indicators in Baoviet Group’s Sustainability Report 2020 according to the Sustainability Reporting Standards 2016 and the Financial Services Sector Disclosures of the GRI, including:

Scope of review and assurance

Conclusion

Based on the works described above, in our opinion, the selected Sustainability indicators in Baoviet Group’s Sustainability Report 2020 have been fairly presented, in all material respects, in accordance with the Sustainability Reporting Standards 2016 and the Financial Services Sector Disclosures of the GRI.

To:

Hanoi, 28 April 2021No.: 533/2021/TĐBV-KTKTNB

About: Assurance on selected Sustainability indicators

In order to assure the reliability for selected indicators in Baoviet

Group’s Sustainability Report 2020, the Inspection - Internal

Audit of Baoviet Holdings has performed assurance on Baoviet

Group’s selected Sustainability indicators 2020.

BAOVIET HOLDINGS

Tran Thi Dieu Hang Chief Audit Executive -

Internal Audit of Investment

Ratios of standard entry level

wage by gender compared to local minimum wage;

Operations with local community engagement,

impact assessments, and development

programs;

Average hours of training per year per

employee;

Monetary value of products and services designed to deliver a specific social benefit for each business line

broken down by purpose.

GRI 202-1 GRI 404-1 GRI 413-1 GRI G4 - FS7

SUSTAINABILITY REPORT ASSURED BY THE INTERNAL AUDIT

21GENERAL INFORMATIONSustainability Report 2020 NEW NORMAL - NEW ASPIRATION

20 21GENERAL INFORMATION

CHAIRMAN’S MESSAGE

Dear Shareholders, Customers and Colleagues,

SUSTAINABLE DEVELOPMENT IN THE CONTEXT OF THE “NEW NORMAL”

The Covid-19 pandemic is complex, impacting all nations worldwide. Vietnam’s economy is very open, and international integration is developing, thus the pandemic has had numerous detrimental effects in socioeconomic areas. Due to the influence of the epidemic, production, supply and commerce, aviation, tourism, labor and employment operations have been delayed or disrupted.

establishing loyalty programs, giving additional sales tools to agents, and enhancing website interaction. new platforms (Baoviet Digital Platform, MyAP); Encourage the launch of new products on the e-commerce platform, such as Life Care, Flight Delay, Electronic Equipment Insurance, Motorcycle and Car Insurance, and so on, as well as collaboration with financial technology companies (fintech) and payment intermediaries in the development of an insurance financial services ecosystem.

Baoviet has concretized its strategic orientations for sustainable development into concrete measures, such as incorporating the World Sustainable Development Goals into Baoviet’s development plan, in order to achieve sustainability goals. During the period 2016-2020, Vietnam will strengthen the relationship between socio-economic and environmental aspects (ESG) in the value chain. According to Baoviet, sustainable growth is not only the duty of the Board of Directors, but also requires the participation of all system members. As a result, Baoviet’s sustainable development is incorporated in the Group’s business growth plan and executed across the board, from the Board of Directors to the Board of Management, member units, officers and children in the whole system.

Despite the challenging backdrop of the Covid-19 outbreak, Baoviet experienced good development, essentially meeting its business plan targets, thanks to long-term foundations and adaptive methods, the Group maintains its No. 1 position in the life insurance market in terms of premium and non-life insurance. Baoviet Total life insurance revenue was VND 36,151 billion, increased 12.5% over 2019. Baoviet Life insurance premium income maintained its growth pace, reaching approximately VND 29,700 billion, an increase of 5.8% over the same period in 2019. Total Non-life insurance revenue totaled VND 11,526 billion, above the target by 6.9%; Total premium revenue reach VND 9,692 billion, exceeding the Group plan by 4.2%. With several important local and international awards in 2020, Baoviet maintains its leading brand position. This outcome serves as the foundation for Baoviet to continue implementing its sustainable development plan by balancing economic, social, and environmental objectives, guaranteeing long-term advantages for consumers and investors, workers, and communities.

THE COVID-19 EPIDEMIC HAS HAD AND WILL CONTINUE TO HAVE A SIGNIFICANT INFLUENCE ON MANY SECTORS OF SOCIOECONOMIC LIFE IN MANY NATIONS,

INCLUDING VIETNAM. THANKS TO THE GROUP PROACTIVE APPROACH OF TECHNOLOGY APPLICATIONS, BAOVIET HOLDINGS HAS CONSISTENTLY

OVERCOME OBSTACLES, KEEPING OUR BUSINESS PERFORMANCES STEADY AND SUSTAINABLE EXPANDED THAT MADE A MAJOR CONTRIBUTION TO THE

DEVELOPMENT OF VIETNAM’S SOCIO-ECONOMIC IN THE “NEW NORMAL”.

Despite being severely impacted by the epidemic, Vietnamese businesses can still find chances for growth and improvement. The effective management of the epidemic enables our country to become a reliable destination for international investors, as well as a viable and safe destination for the reallocation of global investment flows, particularly following the trend of businesses moving manufacturing facilities out of high-risk nations.

The period affected by the Covid-19 pandemic is also an opportunity for businesses to test their endurance and ability to adapt to the new situation; self-assessment on the current production and business situation, strengths, weaknesses and competitive advantages, on that basis, improve the business model towards efficiency and sustainability. 2020 also witnessed a strong transformation of most businesses as a result of the industrial revolution 4.0; such as new applications continually boosting worker efficiency, lowering product prices, and improving manufacture processes, actively contributing to environmental improvement…

With Baoviet, we have prepared ourselves a “new aspiration” with a proactive, flexible aspiration, constantly learning, applying, creating, innovating the way of governance, enhancing digital transformation, instead of restricting in the traditional ways, Baoviet has pioneered and embraced technology, joined the flat world to adapt to changes in the new state to continuously grow and develop sustainably. In 2020, Baoviet will accelerate its digital transformation by digitizing operations such as remuneration, report management, and official document management, among others, in order to achieve a paperless workplace. At the same time, Baoviet is working to improve the customer and agent experience by

In the “new normal” state, Baoviet advocates the implementation of “dual goals”, to ensure both safe Covid-19 pandemic prevention and efficient business operations. In this environment, with a firm route and a pre-formed foundation as a result of the pioneering strategy of 4.0 Information Technology applications, Baoviet Holdings has been gradually conquering obstacles, maintaining stability and sustainable development which contributed significantly to the socio-economic development of Vietnam in the

“new normal” state.


Beyond the objectives of financial development and shareholder’s benefits maximization, as a major financial-insurance institution in Vietnam, we recognize the need of making contributions to the environment and society in order to ensure a sustainable future.

BAOVIET

FOR A SUSTAINABLE FUTURE

JOINS HAND TO

THE GLOBAL ECONOMY RECOVERY AND TO ACCOMPANY WITH CONSUMERS AND THE COMMUNITY SUPPORT

In 2020, with the complex and uncertain scenario posed by the Covid-19 pandemic, Baoviet has special policies in place for customers with Covid-19 infected such as: Paying Covid-19 medical expenditures, 20% reduction on insurance rates for Baoviet An Gia and Baoviet Intercare products which covered benefits include diagnostic fees, treatment costs, inpatient hospitalization allowances, and insurance benefit payment if the insured person dies as a result of Covid-19.

Baoviet Life has a specific policy for clients infected with Covid-19 that pledges to pay insurance benefits for hospital costs, serious sickness benefits, and death benefits. Even if patients infected by Covid-19 have been treated and cared for free under the state policy, customers who join life insurance receive a unique hospital cost discount (200% of the insurance premium) under the terms and extent of the contract, coverage of the normal hospital benefit benefit is provided.

In 2020, Baoviet Group spent nearly VND 21 billion on community activities, concentrating on poverty alleviation, environment protection, education sponsoring, and organizing many social security programs, etc. Until now, Baoviet has invested nearly VND 322 billion in community activities, with four main focuses: poverty alleviation; education and young generation support; gratitude to martyrs and families; and natural disasters recoveries…

By 2021, the macroeconomic environment will alter dramatically as a result of global economic and political situations, natural catastrophe and pandemic threats. On the other hand, the fourth industrial revolution will bring opportunities and challenges for industries…

The Board of Directors will constantly accompany the Board of Management and stand with employees, as well as consultants from throughout the system, to continue supporting excellent traditional values, determination and agreement to implement the strategic direction in the new normal, with a new aspiration to adapt and take new possibilities toward the Group’s strategic growth strategy for 2021-2025.

With every good wish.Yours sincerely,

Dao Dinh ThiChairman of the BOD of Baoviet Holdings

CHAIRMAN’S MESSAGE


25GENERAL INFORMATION

GRI

102

BAOVIET OVERVIEW

Baoviet always engages economic growth with environmental protection and social responsibility - three fundamental factors play important role in the long-term success of Baoviet. Economic growth is the most important goal of Baoviet since this is the prerequisites for implementing other social and environmental goals.

SCOPE OF REPORT

Baoviet Overview

2020 Facts and Figures

Corporate governance structure

Key performance indicators (KPIs)

Through the general introduction of vision, mission, overview reportson business operations and sustainable development, Baoviet 2019 Sustainability Report give an overview perspective about the business, therefore, supporting stakeholders in decision-making along with strategic activities of Baoviet.

CORE VALUE

MISSION

To ensure the peace of mind, prosperity, and long-term

benefits for our customers, investors, employees

and community.

VISION

Maintain the position as the leading financial-insurance Group in Vietnam, enhance the international competitiveness,

reinforce financial capacity, deliver resilient sustainable

growth.

TEAM SPIRIT Keep the team spirit alive and treat your colleagues

with respect

RESPONSIBILITY Behave responsibilitively to customers,

community, and each other, and act with integrity

QUALITY Improve the quality of

everything you do and reach for a higher standard

DYNAMIC Stay dynamic and open

to new ideas and opportunities.

APPROACHABLE Make yourself approachable

and serve your customer professionally, and as you would like

to be served yourself

102-1GRI 102-13GRI


Address: No. 72 Tran Hung Dao, Tran Hung Dao Ward, Hoan Kiem District, Hanoi

Charter capital: VND 7,423,227,640Baoviet Holdings’ business registration certificate was registered with the 13th

amendment on January 9th, 2020

Commercial name: BAOVIET HOLDINGS

THE LEADING INSURANCE AND FINANCE GROUP WITH 56 YEARS OF PIONEERING HISTORY OF OPENING AND ACCOMPANYING

THE DEVELOPMENT OF VIETNAM’S INSURANCE MARKET.

17,000,000 CUSTOMERS

15/01/1965 ESTABLISHED

>6,500 EMPLOYEES ACROSS BAOVIET GROUP

250,000 AGENTS AND CONSULTANTS

179 BRANCHES

>900 TRANSACTION OFFICES

80 NON-LIFE INSURANCE

PRODUCTS

>40 LIFE INSURANCE

PRODUCTS

(non-life insurance & life insurance )

INSURANCE

INVESTMENT

BANKING

FINANCIAL SERVICES

ALSO PROVIDE OTHER SERVICES: SECURITIES, FUND MANAGEMENT, BANKING

BAOVIET OVERVIEWGRI

102

GRI 102-1 GRI 102-13


1965Vietnam Insurance

Company was founded on 15 January 1965

to undertake non-life business

1965

1999Baoviet Securities Joint Stock Company was incorporated as the first securities

company in Vietnam

1999

1989Vietnam Insurance Company was reformed into Vietnam

Insurance Corporation

1996Baoviet established the first life

insurance company in the market, to become Vietnam’s first

comprehensive life and non-life insurance provider

1989-1996

2008Baoviet Commercial Joint

Stock Bank was established

2008

2011Baoviet Holdings increased chartered capital to VND6,805 billion by issuing

additional shares to existing shareholders

2012

Sumitomo Life became strategic investor of Baoviet

Baoviet Bank increasing chartered capital to VND3,000 billion

2011-2012

2013Baoviet Insurance and Baoviet Life completed increasing charter capital to VND 2,000 billion

in 2015

2015Completing the restructuring project

of Baoviet Finance and Insurance Group for the period 2011-2015

2013-2015

2018Pioneering in the 4.0 industrial

revolution

2018-2019

2020 Exceeding the business plan in the context of the Covid

pandemic affecting the global economy

2020

2017 Opening the first Financial supermarket – Baoviet One

stop shop

2016The first financial – insurance

group of Vietnam reached $01 billion in total revenue

2016-2017

2005Baoviet Fund Management Company was established

2007After a successful initial public

offering (IPO), Baoviet financial-insurance group was incorporated

HSBC Insurance acquired 10% stake in Baoviet

2005-2007

2009Baoviet Holdings was listed

on the Ho Chi Minh City Stock Exchange (Code: BVH)

Baoviet Invest Joint Stock Company was established

HSBC Insurance increased its stake in Baoviet

2010Baoviet launched

a new brand identity

2009-2010

2019Successfully implemented the private

placement of share issuance project with strategic shareholding partner Sumitomo

Life, raising the total charter capital of Baoviet to VND 7,423 billion, helping

Baoviet Holdings complete its 2016-2020 capital raising strategy

A HALF-CENTURY JOURNEY OF SUSTAINABLE VALUE CREATION

BAOVIET OVERVIEWGRI

102

GRI 102-1 GRI 102-13


INVESTMENT HIGHLIGHTS

OUTSTANDING MARKET POSITION

Being the Vietnamese leading Finance-Insurance Group, BaoViet excelled 50 years of development history, the top reputational brand on the market, a team of more than 350.000 employees, agents, consultants with the most extensive experience in the financial - insurance market.

Large-scale distribution network that includes 179 branches, over 1000 insurance transaction offices in all cities and provinces of Vietnam, which is difficult to find elsewhere in Vietnam.

A financial – insurance group taking lead in different businesses including non-life insurance, life insurance, fund management, securities and other financial services with total revenue of non-life insurance in 2019 reached nearly VND 11,700 billion, accounting for more than 20% of the market share, continuing to hold the number 1 in Vietnam’s non-life insurance market; total life insurance revenue in 2019 reached VND 32,153 billion, continuing to hold the No. 1 position in the life insurance market in terms of total premiums.

BVH - ATTRACTIVE STOCK TO INVESTORS

Baoviet is the public listed company with large market capitalization. BVH stock, with high liquidity is the most influential among the stocks of financial and insurance companies, and is always included in the investment portfolio of international exchange traded funds (ETFs) in Vietnam.

Being the first state-owned enterprise to succeed in seeking foreign strategic shareholders.

Belong to the leading group of financial institutions has the highest dividend yield in many years.

HIGH POTENTIAL BUSINESS GROWTH

Baoviet has created a solid foundation making the momentum for a sustainable growth in the future and get ready to exploiting tremendous opportunities in Vietnam insurance-financial market.

Business results grow sustainably and efficiently.

BaoViet has consistently and steadily grown our revenue and profit over the years, in all businesses including insurance – investment – financial services.

In 2020, Parent Company has successfully implemented the project of Private Placement Share issuance with partner SML. Baoviet has issued 41,436,330 shares to foreign investors, raising Baoviet’s total charter capital to VND 7,423 billion, helping Baoviet Holdings complete its 2016-2020 capital raising strategy, strengthen financial capacity for the Parent Company, continuing to create momentum for sustainable development for the 55-year-old brand - Baoviet.

THE ROLE OF SHAPING AND DEVELOPING THE MARKET

Baoviet proactively takes part in shaping the insurance market and capiatal market of the financial sector of Vietnam.

Baoviet plays a key part and is a typical success story in the State – owned enterprise equitization process, achieving a lot of comprehensive innovations. We are making efforts to continue to accelerate next steps of equitization process by reducing the proportion of the State – owned shares, looking for a new foreign strategic partner to increase business perfomance effectiveness.

Baoviet remains a pioneer in socially responsible insurance plans, such as agriculture insurance, natural disaster risk insurance, export credit insurance, aquaculture insurance…

BAOVIET OVERVIEWGRI

102

GRI 102-1 GRI 102-13


HOANG SAISLANDS

HCM CITY

HANOI

TRUONG SAISLANDS

CONDAO

PHU QUOC

Baoviet is the first company to provide non-life insurance and life insurance services in Vietnam. Currently, Baoviet provides comprehensive financial services including insurance, banking, securities, fund management and investment with distribution network across the country, serving millions of customers.

BUSINESS LINES AND NETWORK

Baoviet Holdings operates under the Business Registration Certificate No. 0100111761, registered for the first time on October 15, 2007, registered for the 13th amendment on January 9, 2020, operating in the field of Insurance - Investment - Finance - Banking.

• General insurance: Aviation insurance; Vehicle insurance; Marine insurance; Fire and property insurance; Cargo insurance; Engineering insurance; Personal insurance; Medical health insurance; Agricultural insurance...;

• Life Insurance: Whole life insurance, Endowment insurance; Term insurance; Universal life insurance; unit linked Insurance, Pension insurance...;

• Reinsurance services.

• Investment in subsidiaries and associate companies;

• Management of investment funds, portfolio trust management;

• Management of securities investment funds, investment in real estate.

• Stock Brokerage; Proprietary trading; Financial and securities investment consulting; Securities underwriting; Securities depository;

• Trading financial services and other fields as regulated by law;

• Securities investment consultancy.

• Capital mobilization: receiving deposits, issuance of certificates of deposits, bonds and other valuable papers;

• Credit activities: credit in the form of loans, discount, guarantee, financial leasing...;

• Payment and treasury services.

NETWORK

Extensive distribution network across Vietnam with nearly 200 branches and subsidiaries providing insurance, banking, securities and fund management services in 63 cities and provinces, more than 400 non-life insurance transaction offices and more than 300 life insurance transaction offices throughout the country.

PRODUCTS & SERVICES

Baoviet provides a diversified product portfolio with more than 80 non-life insurance products, 55 life insurance products, and other banking, sercurities, fund management products.

KEY BUSINESS AREAS

Branches located at key economic areas of the country such as Ho Chi Minh city, Hanoi, Da Nang, Nghe An, Hai Phong, Binh Duong remain high performing units, contributing significantly to Baoviet’s total revenue.

CUSTOMERS

Baoviet provides services to all types of individual and group customers across the country.

63 Provinces

135 Insurance products

600 Non-life customer service offices

362 Life customer service offices

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INSURANCE

INVESTMENT

FINANCIAL SERVICES

BANKING


BAOVIET HOLDINGS ORGANIZATIONAL CHART

(Từ ngày 19/3/2020)

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER

Inspection – Internal Audit

Remuneration and Nomination Committee

Strategy and Investment Committee

Audit Committee

ANNUAL GENERAL

MEETING OF SHAREHOLDERS

Representative Dept. No.7

Finance – General Affairs Division

SUPERVISORY BOARD

General Affairs Dept.

IT Service Management Division Training Division

Investment Dept. Finance Dept.

Propaganda – Legal Dept.

Software Applications Division

Training Management Division

Strategy Dept. Accounting Dept.

Human Resources Dept.

System Operation and Administration Division

Accounting – General Affairs Division

Real Estate Dept.

Branding & Communication Dept.

IT Service Support DivisionRisk Management Dept.

IT Security and Compliance Division

Baoviet Training Center

Support unit of Head of In-spection – Internal Audit

Internal Audit Division on General Insurance

Internal Audit Division on Investment Activities

Internal Audit Division on Life Insurance

IT Center Branch

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ECONOMIC

CONTRIBUTETO THE

COMMUNITYDEVELOPMENT

18006966 FREE CALL CENTER

General health advisory

ENGAGINGSUSTAINABLE

DEVELOPMENTINCORPORATEGOVERNANCE

INVESTMENTIN HUMAN RESOURCE

DEVELOPMENT 3,700 POOR FAMILIES Received

free medical treatment

35BILLION VND

Investment in education

and youth projects,construction national

standard schools

18BILLION VND

Investment in the EducationSecurity Welfare program

since 2005

96,714 TRAINING HOUR

of Professional expertise 2,000 BLOOD UNITS

Donation topatients in need

ISO19600

STANDARD Compliance with

business operations

training

96.5%

27 ISO STANDARDS

Regulatingimportant business operations training

18

Core team forsustainable development

MEMBERS

1,200 POSTERS

CALLING ACTIONS OFEMPLOYEES IN USINGENERGY RESOURCES

AT OFFICE

130,000 BILLION VND

Return investment

2,200 BILLION VND

Contributed to thestate budget 44,848

BILLION VND (+7.2% ) Consolidated

revenue

700 BILLION VND

Dividends paid toshareholders

500 NEWS AND POSTS ON

BAOVIET’S WORKPLACEPROMOTING SUSTAINABLE

DEVELOPMENT ININTERNAL NETWORK

7,000 M3 WASTE WATER

THROUGHUOTBAOVIET OFFICES

REDUCED

5s APPLYING 5S AND

BVOFFICE TO REDUCEPAPER IN THE WORKING

ENVIRONMENT

105,365 TRAINING HOUR

for employees

EMPLOYEESJoined the communityactivities in 2020

SOCIALENVIRONMENT

FACTS AND FIGURES IN 2020

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38

Social welfare’ initiatives towards environmental and social,

sustainable development goals

Baoviet and its subsidiaries responded flexibly and proactively

deployed solutions to ensure business efficiency against the

impact of the Covid-19 Pandemic.

Baoviet - Sumitomo Life deal was voted as the “2019-2020 Vietnam’s best investment

and M&A deal”

Promote the application of modern information technology, improve the efficiency of business, management and

administration operation

Baoviet continues to affirm its leading brand position with many

prestigious titles and awards

Enhancing governance capacity with organization consolidating

project of the block-level management of Baoviet Holdings

Subsidiaries launched new, superior products, enhacing customer benefits

Successfully organizing Party congresses at all levels

Cross-selling synergy reached the finish line

Baoviet continues to affirm its No. 1 position in Vietnam’s insurance

market in both life and non-life insurance sectors.

10 HIGHTLIGHTS OF 2020

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40 41GENERAL INFORMATION

Baoviet continues leading for 10 consecutive years at the Listing Enterprises

Poll 2020

Top 50 best listed companies in Vietnam

for the 8th consecutive year

Platinum Award for Best Integrated Report and Sustainability Report

in the Finance and Insurance Industry (LACP)

Baoviet Securities was honored as

“Vietnam’s best M&A consulting firm in 2019 - 2020”

TOP 50 Most Valuable Brands

in Vietnam

Top 10 “2020 Best Brands

of Asia - Pacific “ and Best Corporate Social Responsibility in Vietnam

The best insurance brand in Vietnam voted

by Global Brands Magazine (United Kingdom)

Best Fund Management Company

in Vietnam 2020

Baoviet leads the insurance industry

in 2020

Top 10 Best Sustainability Enterprises

in Vietnam for 5 consecutive years

1.

3.

5.

8.

6.

9.

7.

10.

4.

2.

After nearly 60 years of development and continuously affirming its position as the number 1 national enterprise in the insurance market in Vietnam, Baoviet has so far reached further and farther, worthy of the world international standard when it was honored to receive many prestigious awards of continental stature and titles that many businesses expect to

be recognized.

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BAOVIET FUND

BAOVIET INVEST

BAOVIET SECURITIES

UNIT: VND BILLION

12,978 VND BILLIONTOTAL ASSET

120,173 VND BILLION

176 VND BILLION

306 VND BILLION

3,413 VND BILLION

3,151 VND BILLIONOWNERS’ EQUITY

6,244 VND BILLION

161 VND BILLION

222 VND BILLION

1,875 VND BILLION

11,526 VND BILLIONTOTAL REVENUES

36,169 VND BILLION

114 VND BILLION

311 VND BILLION

594 VND BILLION

BAOVIET INSURANCE

BAOVIET LIFE

KEY PERFORMANCE INDICATORS (KPI)

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45GENERAL INFORMATION44

SCOPE OF REPORT

Business environment, opportunities and challenges

The sustainable development strategy is formed, implemented and applied throughout the Group, which includes:

Baoviet sustainable development strategy

Impacts of sustainable development trend on Baoviet

Report on Baoviet sustainable development impacts

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SUSTAINABLE DEVELOPMENT STRATEGY

At Baoviet, we are not only focus on our business activities in order to achieve revenue and profit objectives. We also recognize the over-exploitation of resources, the unbalanced development in society that lead to systemic, counterproductive effects, and restricts our own business activities. Therefore, Baoviet’s sustainable development strategy focuses on implementation of sustainable economic growth in the long run, in combination with the implementation of social and environmental goals, ensuring harmony with the benefits of stakeholders.

We embedded the sustainable development strategy to the overall development strategy of Baoviet to ensure sustainable growth in the long run, thereby creating new values contributing to society and the environment, meeting stakeholders’ expectation and fulfilling our obligations. Strategies are being formed based on active and proactive sharing with stakeholders to identify issues that need change and development in parallel with risk assessment to identify Baoviet’s sustainable development strategy. Thus, we implement sustainable development plans in the short, medium and long term.

MANAGEMENT APPROACH

ECONOMIC

SOCIAL

ENVIRONMENT

Baoviet integrated these goals into business operations. Incorporating sustainable development goals helps Baoviet strengthen internal strengths, sustainable growth rate, enhance our position and reputation for customers, investors, employees and the community.


BUSINESS ENVIRONMENT, OPPORTUNITIES AND CHALLENGES

OPPORTUNITIES AND CHALLENGES

IN THE LONG-TERM (ONWARD TO 2025)

In the context of unpredictable volatile fluctuations in the global economy and financial markets, the business environment in Vietnam has become increasingly complicated with many potential risks, Baoviet has proactively implemented forecasting and analytical work on such changes of business environment with the identification of opportunities and challenges for Baoviet in the short, medium and long term.

The global economic outlook is forecasted to remain challenging and entail unpredictable potential risks. In this context, Baoviet identifies opportunities and challenges for business operations of Baoviet to 2025 as follow:

Main factors Factors Insurance Investment Financial Services

INSURANCE

INVESTMENT

FINANCIAL SERVICES

LĨNH VỰC DỊCH VỤ TÀI CHÍNH

Macroeconomic context

Financial and insurance

market restructuring

Deep integration with the region and the world

Social demographic

factors

BAOVIET HOLDINGS IDENTIFIES OPPORTUNITIES

AND CHALLENGES FOR BAOVIET’S BUSINESS OPERATION TILL 2025

Macroeconomic context

Government promotes public investment but reduces investment in new projects

Businesses recover after a difficult period

Control inflation

Low interest rates

Increase savings and reduce spending

Profiteering and premium debt

Exchange rate fluctuations

Credit and currency tightening

Bad debt increased

Financial and insurance

market restructuring

Pressure to increase capital, stricter requirements in regulators’ supervisory regulations

Strengthening the market towards more transparency and professionalism

Restructuring the financial industry

Deep integration

with the region and the

world

Increasing competition with foreign enterprises

Promote commercial activities

Increasing foreign investment flows

Social demographic

factors

Low insurance penetration/GDP

Golden population structure, rapidly growing middle class

People’s awareness and understanding of insurance is increasing

Pressure to research the market carefully

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MAJOR RISK

The 4.0 technology revolution creates a great change in socio-economic life and affects the development of each business, creating a lot of new opportunities and challenges, including risks related to related to information security, data security; new requirements for workers’ skills... BaovietHoldings and subsidiaries always proactively assess risks systematically,, ensuring all risks are controlled timely and effectively.

Type of risk Identification Monitoring and management of risk

Level & Trend

• The annual business plan may not yet align with the strategic objectives plan.

• Not predicting all subjective, objective or changes in business environment.

• The impact of information technology in the period of industrial revolution 4.0

• Monitored by monthly and quarterly analysis of macroeconomic factors, business results, results of strategic plan.

• Managed by analysing scenarios of volatility of macroeconomic factors, internal factors, to consider the feasibility of the annual strategy.

• Iinvestment infrastructure and information technology applications according to international standards, ensuring synchronization, modernity, safety and efficiency.

• The risk of IT systems affecting the continuity of business loss of information assets.

• Risks from compliance with legal regulations; loss and damage that an enterprise may incur in the event of a dispute.

• Eveluation in terms of the impacts to continuity of business, to financial impacts and to the reputation.

• Monitored by using KPIs, monthly and quarterly reports.

• Managed by Operational Risk Management Framework, Information Security Regulations, and processes, procedures and internal control system.

Type of risk Identification Monitoring and management of risk

Level & Trend

1.

Insurance risk

• Insurance compensation costs have a strong fluctuation;

• The obligations to pay for insurance events are exceed the assumptions used in designing product.

• Assessing risks in designing new insurance products, underwitting, inspecting and payment/ compensating insurance; assess accumulated risks according to each profession, product group, locality ...

• Regularly review important assumptions (death rate table, technical interest rates; loss parameters), review the risks of insurance coverage and insured subjects; risk transfer through reinsurance operations.

• Fluctuations in deposit interest rates, government bonds interest rates

• Volatility of stock prices and/or prices of other commodities.

• Managed, measured in terms of Value at risk, interest rate sensitivity assessment - PVO1

• Monitored by using monthly risk reports, and quarterly risk reports.

• Risk of arising bad debts or overdue bond investments, overdue deposits occurred

• Risks from insurance business, margin trading.

• Supervisor, monitor the compliance with investment limits and risk limits.

• Managed by internal credit rating model, which have been approved by RMC.

• Periodically evaluate the collateral assets of corporate bonds .

• The risks cause of term imbalance of cash flow to fulfill payment obligations or directly affect the liquidity status of the whole Group.

• Monitor asset and liability cash flow projection for all tenor, the percentage of high liquid asset. Review the asset and liability for each period, the liquidation rate of assets.

• Managed by using limit, liquidity Gap, and scenario analysis.

• Risks arise when the mass media publish adverse information or products and services that do not meet the expectations of customers and investors.

• Business activities, behaviors, attitudes of employees or third parties negatively affect the image of the business.

• Monitored, tracked by articles by press agencies, indicators from customer service center.

• Managed by the processes, procedures, manuals, regulations handling crisis communication

• Training and communication for employees and leaders of the Group on Communication Crisis Management and topical risk management training courses.

• Risks affected to sustainable development in the Baoviet system;

• Social and environmental risks affected to Baoviet;

• The risks from Baoviet’s business activities affected to environment and society.

• Periodicly monitor the financial and non-financial indicators.

• Managed by procedures and regulations, auditing sustainable reports by internal and external audit.

Notes:

High risk Medium risk Low risk

Level

Increasing Stable Reduce

Trends: (forecast)

2.

Credit risk

3.

Market risk

4.

Liquidity risk

5.

Operational risk

6.

Reputation risk

7.

Strategic risk

8.

Sustainability risk

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WORLD TRENDS AFFECTING BAOVIET’S

STRATEGY

The world is entering a new growth cycle, global movement poses many challenges due to global economic recovery is not sustainable while unpredictable risks remain; the rise of global trade war, public debt; Governance at the global and national level is slow to adapt to rapid changes in economics and science as well as technology; Environmental pollution, climate change, gap between rich and poor,... are increasingly serious. With such sustainability trend, Baoviet recognizes a number of risks and challenges that may affect the operation of Baoviet. These challenges and risks are assessed according to the extent of impact on Baoviet’s business and the interests of its stakeholders.

Over the past year, the Covid-19 pandemic appeared and developed in a complicated way, seriously affecting all countries in the world. Vietnam’s economy has a large openness, and international integration is deepening, so it has suffered many negative impacts of the epidemic in the socio-economic fields. Production, supply and trade, aviation, tourism, labor and employment activities have been delayed or interrupted due to the impact of the epidemic. Enterprises are severely affected, many businesses have to suspend operations or go bankrupt, dissolve or reduce the scale of production and business.

CHALLENGES OF PANDEMIC INCREASED AND ADAPTABILITY IN THE STATE OF “NEW NORMAL”

ENVIRONMENTAL CLIMATE CHANGE CHALLENGES

DISEASES INCREASE, AFFECT ON GLOBAL AND VIETNAM GROWTH

VIETNAM HAS BEEN MUCH IMPACTED FROM ENVIRONMENTAL CLIMATE CHANGE

The disruption of many economic activities based on traditional foundations forces Vietnamese agencies and businesses to be bolder in researching and applying digital platforms in management, production and business activities. business.

The world is witnessing the rapid changes of the Industrial Revolution 4.0. Industry 4.0 comes from breakthroughs in many fields, including the digital wave of the manufacturing sector. Recognizing that importance, many countries have paid attention to and concretized priorities for digital economy development. In particular, the context of the COVID-19 pandemic has made the Vietnamese government and business community more interested in the digital economy.

Climate change presents a huge challenge which significantly impacts on manufacture, daily life and environment. The increase of temperature, the raise of sea level cause flood and the salinity of water, which have negative influences on agricultural production, industrial manufacture and socio-economic activities

Obviously, human activities have been widely impacting on our own planet, leading to the degeneration of natural ecosystems, the depletion of natural resources and biodiversity, the pollution of air, water, soil…, and especially causing the global climate change. Abnormal storms, floods, droughts are increasing both in frequency and intensity, which causes much damage in many aspects to all areas over the world, including Vietnam.

Vietnam is considered as one of the countries that will be severely affected by climate change (climate change, in which natural disasters, pipe floods,

Despite being hit hard by the pandemic, Vietnamese businesses can still see opportunities to grow and improve their capabilities. The elimination of the epidemic helps our country become a reliable address for foreign investors, a potential and safe destination for the reallocation of investment flows in the world, especially the trend of shifting manufactory out of China of corporations in the world. With a large labor force and cheap labor costs, good infrastructure, and a geographical location near China, Vietnam will be paid more and more attention by corporations wishing to move. The period affected by the Covid-19 epidemic is also an opportunity for businesses to test their endurance and ability to adapt to the new situation; self-assessment on the current production and business situation, strengths, weaknesses and competitive advantages, on that basis, improve the production and business model towards efficiency and sustainability.

In the state of “the new normal”, Baoviet has prepared for itself a proactive and flexible attitude, constantly learning, applying, creating, innovating the way of governance, enhancing digital transformation Instead of being confined to traditional paths, Baoviet has embraced and mastered technology, joining the flat world to adapt to changes in the new state for constant growth and sustainable development.

flash floods and landslides cause the greatest and increasing serious damage, especially in the northern mountainous provinces. Report have suggest that in recent years, natural disasters have been increasing in number, frequency, unpredictability and devastation due to climate change.

When hot drought combined with saline intrusion leads to lack of fresh water for planting rice crops, affecting productivity. The prolonged saline intrusion also affects the seasonal calendar of the next crops planting schedule due to the inability to control fresh water.

If in one more century, the sea temperature in Vietnam increased by 3oC. Sea level rise in the Mekong Delta from 55 - 75cm, will make 40% of the total area of the Mekong Delta flooded. Sea level rise and saline intrusion will make 45% of the Mekong Delta area saline by 2030.

IMPACT OF SUSTAINABLE DEVELOPMENT TRENDS ON

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BAOVIET JOINS HANDS TO ADDRESS THE GLOBAL CHALLENGES OF RISING DISEASE PANDEMIC

ADDRESSING GLOBAL CHALLENGES FROM CLIMATE CHANGE

Climate change impacts indirectly on human health through pathogens, increases the likelihood of disease outbreaks and spreads, poses risks for Baoviet’s medical insurance and health insurance packages. Risks expose to people and assets also affect Baoviet with increasing compensation costs.

The damage from climate change to the nation’s economy poses a risk to Baoviet’s business in terms of declining people’s incomes and insurance priorities can be changed by substituting for more urgent risks for customers to serve short-term goals.

IN REGARD TO INCREASING PANDEMIC CHALLENGES

Facing the complicated and unpredictable situation of Covid-19, Baoviet had special policies for customers participating in insurance products such as: Payment of medical expenses for customers participating in health insurance affected by Covid-19, 20% discount on insurance for Baoviet An Gia and Baoviet Intercare products. Benefits to be paid include testing costs, treatment costs, inpatient hospitalization allowances, and settlement of insurance benefits in the event the Insured’s death due to Covid-19.

Baoviet Life applies a special policy for customers who are infected with Covid-19, pledging to pay insurance benefits for all current products to customers, including hospital

expenses, serious medical benefits and death benefits under the product terms coverage.

In order to support customers on time in case of unfortunate risks incurred due to Covid-19 infection, Baoviet Life also applies a special policy: for customers who are hospitalized in quarantine isolation due to Covid-19 infection according to coronary diagnosis regulations of the competent health agencies. Even though people infected with Covid-19 have received free treatment and care according to the State’s policy, once they have participated in life insurance, customers still receive special hospital allowance (receive 200% of the insured amount of any regular hospital medical expenses benefit under the terms and scope of the policy).

Concurrently, Baoviet focuses on improving customer experience and agents by implementing loyalty programs (Loyalty), as well as providing more sales tools for agents, increase interactivity on new platforms (MyAP, BaoViet Digital Platform); Promote the deployment of new products on the e-commerce platform such as Life Care, Flight Delay, Electronic Equipment Insurance, Insurance for motorbikes, cars… as well as promoting cooperation with financial technology companies (Fintech) and payment intermediaries in building an insurance financial service ecosystem.

In the state of “the new normal”, Baoviet strengthens its digital transformation through the digitization of Baoviet’s processes such as the compensation process, the process of managing reports and official documents, etc., aiming towards a “Paperless” Baoviet.

Climate change adaptation and response is a global issue but this can also be an opportunity if exploited and utilized. Baoviet recognizes its responsibility to join hands in solving challenges through the development of specialized products such as One-storm - tropical storm insurance, agricultural insurance, rice crops insurance ... mitigating damages and consequences of climate change.

SUSTAINABLE DEVELOPMENT STRATEGY WORLD TRENDS AFFECTING BAOVIET’S STRATEGY

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TECHNOLOGY TRENDS IMPACT THE INSURANCE INDUSTRY

According to the world’s leading consulting firms, Gartner and EY, both the life and non-life insurance industry will continue to invest on digital in upcoming years. Insurance companies will prioritize business model changes, application of data and analytics tools, improving customer experience, and modernizing insurance core system.

OPPORTUNITIES, CHALLENGES AND RISKS BY TECHNOLOGY

TRENDS TO INSURANCE BUSINESS IN GENERALLY AND

BAOVIET IN PARTICULARLY

The strong development of technology brings new opportunities to Insurance Business in generally and Baoviet in particularly, which are increasing opportunities of Customer Approach, Customer Interactions, enhancing Distribution Model, diversifying Sale Channels, as well as completely changing Customer Journey in Finance and

Insurance Business.

Besides, there are challenges and risks for Insurance Business. The break-through technological advances, for example: AI, Big Data, Cloud, IoT, Block-Chain, Robotic... are forecasted to force Insurance Business to adapt to new changes or to be surpassed by alternative business models. These factors change Insurance Business as well as cause fierce competition between traditional competitors and new-born ones and become the biggest

factor of growth and transformation.


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BAOVIET HAS TAKEN ACTIONS TO CAPTURE THE TREND IN 2020 PARTICULAR ACTIONS INCLUDING:

In 2020, Baoviet Holdings basically completed the set goal: Promoting digital transformation through the development of applications on digital platforms such as Baoviet eClaim, Baoviet Office, Baoviet Direct, MyBVLife; Improving the experience of customers, agents and consultants with Customer Loyalty program, Baoviet Digital Platform online sales, MyAP consultant portal; Focusing on building core systems for Baoviet Life, upgrading Baoviet Insurance’s core InsureJ system, Baoviet Fund Management Company’s Core Fund system, connecting core applications with new developed applications as well as comprehensive databases from sales, customer service, claim, accounting… to construct a complete digital ecosystem for BaoViet Holdings.

Before those InsureTech, BaoViet has focused on building IT System including: core systems which serve demand of Member Companies/ Subsidiaries, satellite systems, and connecting data through sale process, customer service, compensation, finance…, then creating a completed ecosystem for Baoviet Group.

Improve Customer and Agency Experience through implementing Loyalty Program, and providing more tools for Agency in Sales (MyAP, BaoViet Digital Platform)...2.

Focus on system connection to complete digital ecosystem of Baoviet.3.

Implement a digital transformation strategy by digitalizing compensation process, approving process and other official documents.4.

Apply Big Data on building “Pricing Engine”.6.

Accelerate the deployment of new products in E-commerce, such as: Life Care, Flight Care, Electronic Device Insurance, Motorcycle/ Car Insurance... as well as promote cooperation with fintech companies and payment intermediaries in developing ecosystem for Finance and Insurance Business.

5.

Continue to complete and upgrade Core Systems, such as: InsureJ of Baoviet Insurance, Contract management system of Baoviet Life, Fund system of Bảo Viet Fund.1.


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PLAN 2021 AND ORIENTATION TO 2025 FOR BAOVIET ITC’S ACTIVITIES

Continuing the digital transformation journey of the Holdings and member companies, 2021 is the first year of the 5-year strategic period 2021-2025, BaoViet Holdings will continue to strengthen and complete the software to support the digitization process in all operation areas of the Group. Particularly, BaoViet Holdings will transform and digitize processes and products towards a paperless BaoViet; deploying AI application to OCR (Optical Character Recognition) for increasing labor productivity; implementing eKYC (electronic customer format); applying Bigdata technology for analysis and decision making; continuing to upgrade the system to improve customer experience; completing online sales platform; adding on agency tools; etc.

BaoViet ITC’s orientation to 2025 is to instantly deploy advanced and modern IT systems to comprehensively promote digital transformation in all activities of BaoViet Holdings.

BaoViet will continue to strongly invest to fulfill the IT system, capture and punctually apply new technology trends which are prevalent in the world, so that the holdings can create a foundation for connectivity, integration and sharing information. Hence, Information Technologies will become one strength of BaoViet, creating a competitive advantage in the new era of the industrial revolution 4.0.

In order to implement the above strategic orientations, BaoViet Holdings will focus on building a high-quality, proactive and creative team to dominate technology in a flat world, affirming its leading position: a world-class Vietnamese brand.

SOFTWARE

• Continue to improve, maintenance and upgrade existing software.

• Focus on perfecting systems to improve customer experience such as Baoviet Direct, MyBvlife, online insurance - eCommerce, eClaim, Baoviet Pay.

• Promote the application of advanced technology platforms and architectures follow as world trends for Baoviet’s software systems to enhance application performance, rapid development and ensure safety and security.

• Promote the application of new technologies such as: Artificial intelligence, machine learning, deep learning, big data processing into production and business activities of the Group and its member units, automating processes process of risk assessment, assessment, compensation to improve labor productivity.

CYBERSECURITY ENFORCEMENT

• Continue to strengthen and improvement the information technology system according to international standards and best practices: ISO 27001, OWASP, SANS, NIST, CIS, Zero Trust etc. To protect IT systems by multi-layered defense.

• Actively monitor, collect and analyze security vulnerabilities to promptly react and respond to information security incidents in the increasingly complex situation of high-tech security crimes.

• Building BaoViet Information Security Index tables and assessing information security ratings at the BaoViet Holdings and member companies.

IT INFRASTRUCTURE

• Continue to transform infrastructure to a cloud computing technology platform to optimize investment costs.

• Promote the application of advanced technology platforms in Baoviet’s IT application operation, thereby improving labor productivity, shortening the time to put software applications to support production activities business output of the subsidiaries.

INSURTECH APPLICATIONS WILL BE

APPLIED WIDELY

DIGITAL ECOSYSTEM WITH THE PARTICIPATION OF BAOVIET

WILL BE EXPANDED WITH MOST PARTICIPATING CUSTOMERS

ENHANCE PROFESSIONAL EFFICIENCY TO SUPPORT

BUSINESS OPERATIONS AND DELIVER PRODUCTS TO

INTERNATIONAL SYSTEM


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As one of the leading Financial-Insurance Groups in Vietnam, Baoviet is well aware of its role not only as an economic leader but also as a pioneer in announcing and realizing Sustainable Development Strategy by taking specific concrete actions in business decisions making, ensuring efficient economic growth, protecting the environment, and contributing to ensuring the peace and prosperity of the community on the basis of grasping international sustainable development trend and anticipating market opportunities.

The United Nations Summit on Sustainable Development adopts the 2030 Agenda with a focus on Sustainability Goals for the period 2015 - 2030, which emphasizes the role of businesses in realizing of sustainable development goals. The summit meeting adopted the 2030 Agenda for sustainable development during the period 2015-2030, in which significant role of corporates is acknowledged to help meet the SDGs. Companies can make contribution into global sustainable development through their core activities and United Nations calls all enterprises to report on their impacts on sustainable development, set ambitious goals with concerted efforts and disclose information transparently.

CIRCULAR ECONOMY A GREAT OPPORTUNITY FOR SUSTAINABLE DEVELOPMENT

ALIGNING GLOBAL GOALS FOR SUSTAINABLE DEVELOPMENT (SDGS) IN OPERATION OF ENTERPRISES

The transition to a circular economy is a great opportunity for sustainable development, not only meeting economic, social and environmental goals but also coping with climate change.Recent studies indicate that adopting periodic economic-oriented business models could open up huge market opportunities worth US $ 4.5 trillion by 2030, creating hundreds of millions of jobs, bringing unprecedented competitive advantages to businesses through reducing risks from scarcity of resources and fluctuations in raw material prices, helping businesses to pre-empt new business policies of future regulators.

In a circulating economy, manufacturers focus on extending the shelf life and making the most of the value of resources, then managing and recreating these products and resources at the end of their useful life. As such, the application of a circulating economic model will help reduce emissions, promote the efficient use of resources, contribute to solving scarcity and resource conservation issues, while support advanced competitiveness for the world and Vietnam economy.

Completing the Global Goals opens up market opportunities worth at least $ 12 trillion in value as surveyed by the Business and Sustainable Development Commission, which accounts for about 60% of the value of the real economy and plays a very important role in achieving the Global Goals. To seize all opportunities, businesses need to pursue social and environmental sustainable development in a strong and clear way as they pursue market share and shareholder value. The more businesses involved in this process from now on, we will become a powerful force together and soon achieve sustainable development goals. Baoviet recognizes that the process of building a circular economy requires technology and the ability to innovate, reuse resources effectively, not only for the environment but also improving the competitiveness of businesses. Therefore, businesses play an important role in joining hands with the Government and relevant agencies to raise public awareness in exploit and reuse resources appropriately.

Baoviet understands that building a good future requires collective efforts from all of us as of today in which businesses play a positive role in realizing this future. And to do that, we also need to build a specific roadmap to compensate for the shortage of resources that people have over exploited in the past and at present.

The 2030 Agenda focuses on combining and balancing the three major issues of sustainability, which are issues related to economic, social and environmental issues. These three issues are addressed in a framework of commitments related to actions established under the 5 “P” elements, including:

Ending poverty in all its forms and respects; uphold the

potential and dignity of the person and enhance equality.

Protect the planet from recession; promote consumption and sustainable production;

natural resource management.Promote a peaceful, just and open society free from fear and violence.

Ensuring everyone has a full and prosperous life.

Mobilize the necessary means to implement this

Agenda through a vital global partnership, ... with the

participation of all countries, all stakeholders and everyone.

HUMANPROSPEROUS PARTNER

PLANET PEACE

The United Nation’s global target for sustainable development through

2030 consists of goals with 169 concretized targets.

Nguyên vật liệu đầu vào Thiết kế

Sản xuất/Chế tạo

Phân phối

Tiêu thụ,sử dụng, sửa chữa

Thu gom

Tái c

hế

chất thải còn lại


GRI

102

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REPORT ON ENVIRONMENTAL AND SOCIAL IMPACTS

In 2020, Baoviet Board of Management closely followed the direction of the Board of Directors, actively implemented activities related to environmental protection and social responsibility in accordance to Baoviet strategic direction on Sustainable development. Aiming to bring a better living standard to the community, Baoviet also invested in community projects to maximize the benefits for local people and the influence of Baoviet in that locality.

Baoviet understands that building a good future requires the efforts of all of us today, in which enterprises play a positive role in realizing

this future. Aiming to that vision, we also need to build a specific roadmap to make up for the limited resources that people have overexploited

in the past and in the present.

COMMITMENTS & ORIENTATIONS

SOCIAL RESPONSIBILITY AND COMMUNITY ACTIVITIES

GREEN BUSINESS AND ENVIRONMENTAL PROTECTION ACTIVITIES ECONOMIC

IMPACTS

Contribute to the economy development

Create jobsMinimize impacts from waste

disposal and energy consumption

Support localeconomic development

Share the burden with theuncertainties of customers’

health and propertyGreen business activities

Pioneer in implementingthe State’s policies

Join hands forcommunity development

Spread the awareness of environmental protection

SOCIALIMPACTS

ENVIRONMENTALIMPACTSRecently, Baoviet launched the first specialized insurance

for cancer in Vietnam (Baoviet K-care). As an insurance product specifically designed for cancer, Baoviet K-Care offers four diverse and great insurance benefits for applicants including: Cancer Insurance Benefits (early and late stage), hospitalization benefit, death by cancer and insurance participants will be paid a fixed amount of indemnity up to 1 billion, in order to help policyholders be able to take the initiative to finance early cancer treatment. In 2020, Baoviet launches Life-care product, which integrates cancer and stroke benefits, is the online insurance product line with the highest cancer benefits on the market), low fee from only 140,000 VND /year, suitable for low-income people.

Baoviet invests in developing micro insurances such as agricultural insurance, student insurance, motor vehicle insurance to help low-income participants in rural areas to be able to access insurance services for living and production activities. In addition, our specialized pension insurance also bring a stable income for employees after their retirement while sharing the financial burden with the State’s social insurance budget.

Realizing the impacts of climate change and human activities on the environment, Baoviet has enhanced the application of information technology to digitize transactions and operation activities to minimize the effects toward the environment. In 2020, Baoviet focuses on engaging SDGs in supply chain assessment and operational risk assessment through integrating accountability obligations in contracts. negotiate with the main contractor; Project investment management processes and equity capital investment processes..

SUSTAINABLE DEVELOPMENT STRATEGY GRI

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Contribute to the economy development

Operating in the field of Insurance - Investment - Finance - Banking, Baoviet prosperity has made an important contribution to these industries in particular and the country’s economy in general.

Support local economic development

With more than 200,000 employees, over 200 branches and more than 700 insurance offices in 63 provinces and cities, Baoviet provides products and services for people nationwide, contributes to creating jobs for workers, contributes for the development of local suppliers and local budgets.

Pioneer in implementing the State’s guidelines

Baoviet is always at the forefront of implementing the State policies, implementing social insurance programs, agricultural insurance programs, pension insurance, export credit insurance, aquatic exploitation insurance, disaster risks insurance.

Baoviet always focuses on fulfilling community development goals because a healthy, safe and wealthy community is a critical condition for enterprises in insurance and financial services can be developed and be able to serve the community in long term.

Create jobs

With operations throughout the country, Baoviet contributes to creating jobs for local people. At the same time, the sustainable development orientations of Baoviet, when deployed to units and implemented by officials, will create a spillover effect throughout the community.

Share the burden with the uncertainties of customers’ health and property

With a base of more than 17 million customers, Baoviet offers a wide range of insurance and financial products, giving customers peace of mind against life risks. In addition, micro insurance products are still deployed by Baoviet every year to help low-income customers, in rural areas, have access to insurance services for life and production activities. , Agriculture.

Join hands for community development

Up to now, Baoviet has invested nearly VND 400 billion for social security activities, focusing on poverty reduction for people in difficult areas; invest in building schools and scholarship programs for poor studious children. With practical action, Baoviet wishes to join hands with the business community, ministries and sectors to actively implement the national target program on sustainable poverty reduction in the period of 2016 - 2020, completing the targets set by the National Government. association.

ECONOMIC IMPACTS

SOCIAL IMPACTS

Minimize impacts from waste disposal and energy consumption

With 90% of the equity portfolio, Baoviet’s capital contribution focuses on core businesses of insurance - investment, finance, banking - environment-friendly industries. Therefore, the environmental impact of Baoviet is mainly through waste discharge and energy consumption at 200 branches and 700 transaction points, etc.

In order to minimize this impact, Baoviet has developed an environmental protection project at its office and was approved

by the Department of Natural Resources and Environment. This project includes the analysis of sources of waste potentially harmful to the environment, Baoviet also conducts quarterly environmental monitoring reports at Baoviet’s office building and solutions. to reduce pollution.

ENVIRONMENTAL IMPACTS

250,000 EMPLOYEES

BAOVIET PROVIDES PRODUCTS AND SERVICES FOR PEOPLE NATIONWIDE

179 BRANCHES

900 INSURANCE OFFICES

SUSTAINABLE DEVELOPMENT STRATEGY REPORT ON ENVIRONMENTAL AND SOCIAL IMPACTS

GRI

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DIRECTIVES ON BAOVIET’S SUSTAINABLE DEVELOPMENT STRATEGY IN MID-TERM AND LONG-TERM

Identifying impacts and opportunities of sustainable development in mid-term and long-term, Baoviet engaged global sustainable development goals in development strategy by 2020, vision to 2025 based on examining implemented activities and analyzing impacts on Baoviet. `

Achievements of economic target are associated with social and environmental objective to maintain the interest harmony among related parties at present and in the future with aim at ensuring long-term sustainable development strategy

at Baoviet.

Baoviet always engages economic growth with environmental protection and social responsibility - three pillars on which a long-term success of Baoviet is built. Among them, economic growth is the most important target since achievement of this goal is critical to

fulfill social and environmental objectives.

Business development strategy goes with commitment and decision of business leaders. At Baoviet, directives and commitments of achievement of sustainable development as well as engagement of sustainable development objectives with business activities receive strong consensus from Boad of directors, Board of management, middlelevel managers to employees.

Baoviet also sent a representative to join the Executive Board of the Vietnam Business Council for Sustainable Development (VBCSD) for the term of 2020- 2022, so that Baoviet will have the opportunity to update new trends. Sustainable development to integrate in more effective business strategies and activities, and at the same time pledged to join hands with the VBCSD Executive Board in annual activities

of sustainable development to promote business towards sustainable development; Promote scaling up the application of sustainability indicators within the Vietnamese business community

In addition, Baoviet also established a Standing Committee on sustainable development consists of 45 members, in which the Steering Committee consisted of theBoard of Directors’ Chairman,Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and Head of Internal Audit Block with decentralized responsibilities for each set of objectives based on 17 UN sustainable development goals and areas in which Baoviet can have the greatest impact when implementing those goals.

COMMITMENTS FROM BOARD OF DIRECTORS AND BOARD OF MANAGEMENT

DIRECTIVES

ECONOMIC


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SOCIALENVIRONMENT


IN THE IMPLEMENTATION OF STRATEGIC TARGETS

USING

By comparing and connecting GRI Standards with Global Sustainable Development Goals (SDGs), businesses can identify key topics and manage the level of engagement betweenenterprise’ activities with SDGs goals, and measure the results of implementing Sustainable Development Strategy at the enterprise. Accordingly, Baoviet has applied a 5-step process as guided by the SDG Compass to identify and manage key issues; Report and monitor the realization of goals, commitment to sustainable development according to SDGs and GRI Standards

more effectively.

Baoviet conducts research, analysis and understanding of the SDGs to

engage in business operations.

Step 1 UNDERSTANDING THE SDGS

Identify priorities: Define the priorities of the business based on an assessment of its positive, negative and current impacts on SDGs in the

value chain.

Step 2 DEFINING PRIORITIES

Defining goals: By aligning business goals and aligning with SDGs,

management can demonstrate its commitment to sustainable

development.

Step 3 SETTING GOALS

Integrating sustainability into core business operations, governance, strategy: Integrating sustainability into business operations and core governance, bringing sustainability

goals into all functions of the company, is the key to achieving the set goals.

By integrating sustainability into the strategy and operations of the

business, Baoviet can pursue common goals or address systemic challenges.

Step 4 INTEGRATING SUSTAINABILITY

Reporting and communicating with stakeholders: With the application

of SDG Compass guidelines, Baoviet can use a number of KPIs and consult

the common priority groups of the international community in measuring

and reporting on the effectiveness of sustainable development

implementation, at the same time make reports and communicate to

stakeholders.

Step 5 REPORTING

AND COMMUNICATING

The

process as guided at

SDG Compass is specifically

applied by Baoviet as follows:

05-step


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SUSTAINABILITY STRATEGIC FRAMEWORK


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Baoviet operates our businesses in a sustainable manner through three benefit principles Economic – Social – Environment which aims to create benefits for the country, the community, the environment and only then the company. We are committed to operating our business founded on good governance, social responsibility, and strict compliance with the rules, regulations, and standards and are in line with the UN’s 17 Sustainable Development Goals.

The Sustainability Strategic Framework has been developed in order to cover three benefit principles along with our six opportunity indicators for easy reference before coming up with annual strategic strategy. This Framework serves as the driver behind Baoviet’s sustainability strategy and ensures that it can efficiently reach its intended targets. This Framework supports various principles and operational systems that Baoviet has either established or adopted, including three benefit principals, Baoviet Management Approach, The 17 UN Sustainable Development Goals and six opportuniy indicators. As result, Baoviet continuously enhanced our sustainability performance to create benefits for the country, positive livelihood for the community, and stability for the corporation business.

Natu

ral

reso

urce

s

Sustainability Management

Opportunity to increase positive impact Opportunity to reduce negative impacts

Management approachBenefit principal

Empl

oyee

s

Supp

liers

Oper

atio

ns

Cust

omer

Prod

ucts

Corporate Governance

Suppy Chain Management

Innovation Investment

Stakeholders Engagement

Water Stewardship

Community Supports

Ecosystem Protection

Human Rights Practices

Training & Education

Labor Supports

Climate Change Management

Living Standards

Human Resources Development

ECONOMY

ENVIRONMENT

SOCIETY


SUSTAINABLE DEVELOPMENT - MEDIUM AND LONG TERMIn order to adjust business activities in line with the global Sustainable Development Goals, Baoviet not only integrates these goals into the process of strategic planning, business development innovation but also in every aspect of business activities, from investment, operations to marketing, brand communication, management and human resource development ... The application of this comprehensive integrated approach will broaden the strategic vision of enterprises, promoting decisions and investment activities with the expectation of

bringing benefits in the long term when the trend of sustainable development becomes the inevitable trend and entering the acceleration cycle.

Based on the specific content of the 17 sustainable development goals of the United Nations, Baoviet analyzed, selected and incorporated these objectives in directives on sustainable development strategy by 2025 including:

In shaping market opportunities brought about by the Global Goals for Sustainability on the basis of shared value, circular economy, and business philosophy, smart service, big data and responsible investment, Baoviet understands that successful implementation of the Global Goals is the key to opening the door to long-term business development.

ECONOMIC SOCIAL ENVIRONMENTAL

• Maintain a leading company in insurance industry with total revenues over US$2 billion.

• Adopt prudent investment strategy to ensure asset safety based on an effective distribution of investment capital and beneficial potentials of subsidiaries.

• Adopt responsible investment principles, continue to grow business, contribute to local economy, and generate working opportunities for locals.

• Promote integrated financial - insurance product mix model, promote responsible consumption.

ECONOMIC GROWTH

2021-2025

Aligning SDGs

GRI Standard

Economic Performance

GRI201

Market Presence

GRI202

GRI203

Indirect Economic Impacts

GRI204

Procurement practices

• Develop new financial service - insurance product package to maintain interests of investors, customers and society.

• Maintain revenue and profit growth, return on chartered capital at over 8% and shareholders’ interests.

• Effectively control risk and cost to improve business efficiency gains.

• Contribute to State budget through paying taxes and dividends, indirectly contribute to the implementation of the Government’s social goals.

• Maintain a leading position in reinvesting back into the economy from premium sources.

• Enhance IT infrastructure, improve customer service to gain business efficiency.

• Diversify financial services and products to meet customers’ needs.

• Promote sales to maintain revenue growth.

• Focus on core businesses: insurance – investment – finance - banking.

• Promote synergy among subsidiaries, cross-sale, and improve competitive capability.

• Develop voluntary pension product, customized insurance package for critical illness, and promote micro insurance for low-income people.

SHORT-TERM (2019-2020) MID AND LONG-TERM (2020-2025) INITIATIVES


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• Use energy efficiently in office buildings through rational and conscious use of energy and natural resources.

• Increase the use of recycled products and use of devices labeled as “green”. Make a shift from environmental protection awareness to accompany Baoviet in environmental activities for customers, partners and all employees.

• Conduct supplier assessments and selection based on their social and environmental commitment.

• Apply responsible investment principles in investment projects to ensure the implementation of Baoviet’s sustainable value chain.

• Minimize activities that generate waste and pollute the environment, contributing to improving the environment and human health.

• Reduce usage of energy and natural resources thereby reduce greenhouse effect;

• Reduce by 10% consumption of petrol and electricity;

• ‘Go green’ lifestyle and promote sustainable consumption; apply 100% indicators measuring energy and water consumed in the whole Group;

• Save paper, stationery and reduce waste in offices.

• Minimize the amount of plastic waste in office activities.

• Reduce greenhouse effect by reducing energy usage in buildings of Baoviet;

• Turn off air-conditioner system after 18h30;

• Control waste processing system in buildings of Baoviet to ensure environmental standards;

• Review petrol and electricity consumption monthly;

• Replace electric water heater with D.O Oil Central Heating;

• Increase review of agreements on environment and society with suppliers and investment plans.

Aligning SDGs

GRI Standard

Energy

GRI302Emissions

GRI305

GRI307

Environmental compliance

• Mitigate income gap between urban and rural areas by investing in disadvantaged areas, especially mountainous provinces.

• Support basic living conditions for people in disadvantaged areas to help them focus on their production to better feed themselves and their family.

• Invest in launching insurance packages which meets diversified needs of customers.

• Develop highly professional human resources having capability to access to modern and advanced management skills.

• Invest in education and young generation for a bright future of the country.

• Narrow the income gap between urban and rural areas.

• Invest in poor alleviation activities to improve living conditions for people in disadvantaged areas.

• Ensure benefits and proper working environment for employees; improve income and living conditions for long-term commitment agents.

• Invest in improving the quality of education, develop the young generation and provide financial support for poor students.

• Implement poverty alleviation activities in accordance with Government Resolution 30A; invest in the construction of semi-boarding houses, health clinics, schools in disadvantaged local areas;

• Organize programs that carry the message “He for She” - Men for Women at work to raise awareness about gender equality and women’s rights

• Invest 1% of profit after tax for community activities such as support after natural disaster and war martyrs tribute;

• Invest in human resources training;

• Perfecting the mechanism of evaluation and payment of wages according to productivity efficiency;

• Engage employees with community activities such as fundraising through walking events, giving winter jackets to poor children…

Aligning SDGs

GRI Standard

Employment

GRI401Training and Education

GRI404

GRI405

Diversity and Equal Opportunity

Local communities

GRI413Customer health and safety

GRI416

FS7

Products and services with a social benefit

SHORT - MEDIUM - LONG TERM GOALS


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SUSTAINABLE COMMUNITY

CONTRIBUTION

SUSTAINABLE

ENVIRONMENTAL PROTECTION


2.91%

100% GDP

20%

In 2020, in the breakout of Covid-19,Vietnam is mong the countries recorded rapid

growth rate compared to the region and the world.

3.5% GDP

5.9%/year

�� 2020

V��'� �� 2016-2020 ��,��

P�� 2020 ��

T � �� 2020��

G��

C��

2016-2020

I�� 2020 ��

RESULTS OF STRATEGIC IMPLEMENTATION DURING 2016-2020

In that context, Baoviet Holdings has made great efforts to overcome difficulties and challenges to successfully implement the goals set out in the Development Strategy for the period 2016-2020, maintaining its position as the leading financial group in Vietnam. Main - Leading insurance in Vietnam, actively participating and playing an important role in being a tool for the Government to regulate and stabilize the macro-economy and financial and insurance markets.

In the 2016-2020 period, the world and regional economies’ movements are more complicated than forecast. The public debt crisis, the slow recovery of the world economy, the increase in risks in the financial and currency markets, and the increase in trade protectionism in many countries. In 2020, the Covid-19 pandemic broke out and spread across the globe, severely affecting economic growth. Science and technology develop rapidly, the fourth industrial revolution and the digital economy become one of the major development trends.

Vietnam’s GDP growth rate in the 2016-2019 period reached 6.8%/year. In 2020, in the context of complicated developments of the Covid-19 epidemic, the growth rate will reach 2.91%; the average period of 2016 - 2020 is about 5.9%/year, Vietnam belongs to the group of high-

growth countries in the region and in the world, but lower than the input assumptions to develop the 2015 strategy. stable macroeconomic foundation, positive economic growth with inflation factors, exchange rate is managed flexibly and strictly controlled, stock market has positive growth. The stock market capitalization by 2020 is forecast to be equivalent to 100% of GDP. Government bond mobilizing interest rates (Government bonds) in the period 2016 - 2019 have decreased significantly, the average deposit interest rates have decreased by 3-5%/year across all tenors, greatly affecting investment efficiency. of insurance companies. Vietnam’s insurance market maintains a high and stable growth rate in the 2016-2020 period, the total revenue will increase by an average of 20% by 2020, the insurance penetration rate by 2020 will be about 3.5% of GDP.

FINANCIAL GOALS AND RESULTS

In 2020, Baoviet’s business activities faced difficulties due to the impact of the Covid-19 pandemic, causing deposit interest rates, government bond interest rates, as well as the stock market to plummet. The cost of making provision for insurance operations and provision for securities investment at the Group increased, the investment efficiency was affected, affecting the Group’s profit after tax in 2020. However, with the Through the efforts of the whole system, Baoviet Finance - Insurance Group, in the period 2016-2020, basically completed and exceeded the set targets, specifically as follows:

The results of the Group’s consolidated revenue and profit targets (according to pre-reviewed data) exceeded the set strategic goals, specifically:

Total consolidated assets for the period 2016-2020 the average growth rate of 20.3%/year, higher than the average growth rate for the 2010-2015 term (5.5%).

Consolidated profit after tax for the period 2016-2020average growth of 6.3%/year.

BILLION DONG - IN 2020 147,283

Total consolidated revenue of the whole Group in the period 2016-2020 average growth rate of 18.7%/year, higher than the average growth rate for the 2010-2015 term (10%) and exceeding the strategic target.

BILLION DONG - IN 2020 48,949Average growth rate of total consolidated equity in the period 2016 - 2020

9%/YEAR

1,597 BILLION DONG - IN 2020


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78

Revenue in 2020 of Parent Company -

Baoviet Holdings

Profit in 2020 of Parent Company -

Baoviet Holdings

Capital mobilization: By the end of 2020, Baoviet Holdings has mobilized more than VND 5,000 billion, basically meeting the Group’s business capital needs for the period 2016 - 2020. In addition, the profit is also Annually, it also contributes to the Group’s business capital.

Using capital: The Group focuses on strengthening the financial capacity of units in the fields of insurance and information technology investment. Specifically, in the period of 2016 - 2020, the Group added 900 billion VND of charter capital to Baoviet Insurance Corporation, increasing Baoviet Insurance’s total capital to 2,900 billion VND by the end of 2020; additional VND 3,000 billion in charter capital for Baoviet Life Corporation, increasing Baoviet Life’s total capital to VND 5,000 billion by the end of 2020, ensuring solvency margin, business expansion, product development new, as a basis to promote sales activities and improve customer service. Nearly 700 billion VND has been added in the period 2016 - 2020 for information technology investment activities to help the Group and its units improve management quality, develop business, and modernize operations according to trends. technology 4.0.

Baoviet maintains the No. 1 position in the market in terms of revenue and market share in both life and non-life insurance sectors (out of a total of 18 life insurance companies and 32 non-life insurance companies in the market). Vietnamese school). In the period 2016 - 2020, BHBV and BVNT will continue to operate a centralized management model based on technology. Baoviet continuously researches and deploys modern technology applications, develops tools to support management, administration and sales on the web/Mobile platform to bring the best utilities and experience. Best for staff and customers such as: New Core software system for Baoviet Life, Quick Report, Baoviet Direct, Baoviet Pay, Eclaim, My BVLife, MyAP, BaoViet Digital Platform...

BHBV and BVNT have launched many new and breakthrough insurance products, which are available for the first time in Vietnam market (An Binh Thinh Vuong, An Hung Phat Loc, Comprehensive Accident Insurance and Medical Care, Insurance). tropical storm, Baoviet Inter Care, Cancer and Cardiovascular Diseases…). Research and develop product strategies for new channels such as Banca, Digital sales, Telesales….

Ratio of profit after tax on charter capital

Annual dividend payout ratio fulfills strategic goals

Personnel

Large customer database

WIDE DISTRIBUTION NETWORK

1,410 VND BILLION

1,012 VND BILLION

13.6% IN 2020

6,000+ PEOPLE

PROVIDING FINANCIAL PRODUCTS AND SERVICES IN INSURANCE, BANKING, SECURITIES AND FUND MANAGEMENT

17,000,000 CUSTOMER

280,000+ AGENTS AND

CONSULTANTS

200 BRANCHES

1,000 TRANSACTION

OFFICE

50% PROFIT AFTER

TAX

MINIMUM PAYOUT EQUAL TO

Results of the achievement of revenue and profit targets of the Parent Company - Baoviet Holdings in 2020

About capital strategy

RAISING CAPITAL IN 2020 (VND BILLION)

5,000 THE GROUP ADDS CHARTER CAPITAL TO BAOVIET INSURANCE (VND BILLION)

900 THE GROUP ADDS CHARTER CAPITAL TO BAOVIET LIFE (VND BILLION)

3,000THE GROUP ADDS INFORMATION TECHNOLOGY INVESTMENT ACTIVITIES (VND BILLION)

700

Baoviet Holdings has succeeded in comprehensive innovation in all fields, affirming and maintaining competitive advantages in the Vietnamese market in terms of the leading prestigious brand in the market.

STRATEGIC GOALS AND RESULTS

In the insurance business

SUSTAINABLE DEVELOPMENT STRATEGY RESULTS OF STRATEGIC IMPLEMENTATION DURING 2016-2020

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In the investment business

Baoviet maintains the leading position in the fund management market in terms of total assets under management, AUM in 2020 will reach VND 78,457 billion. The profit rate of the trust portfolios all exceeded the expected rate of return of customers or benchmark for the period 2016 - 2020. Baoviet Fund Management Company (BVF) was awarded by Global Banking & Finance Review - The Magazine The UK’s leading financial and banking reputation voted “Best Fund Management Company in Vietnam in 2018”. In investment activities in the parent company and its subsidiaries, Baoviet strengthens risk management, improves investment efficiency, and develops a team of qualified and qualified staff to ensure the safety of customers. safe and effective in times of market volatility.

Investment and upgrading of information technology system

In the 2016-2020 period, Baoviet has focused on building IT systems from core software systems serving member companies to satellite systems, implementing interoperability, connecting all data throughout from sales, customer service, compensation, accounting... forming a complete digital ecosystem for Baoviet Corporations and Groups. Some of the typical systems include the following:

• Core software system: InsureJ software system for Baoviet Insurance, life insurance contract management system for Baoviet Life, core Fund system for Baoviet fund management company;

• Sales service system: Baoviet Digital Platform of Baoviet Insurance, Sale Platform of Baoviet Life, AP - Agent portal of Baoviet Life, Online insurance sales system of Baoviet Insurance, etc.;

• Compensation assessment service system: eClaim, BVcare…;

• System for managing distribution channels: Agency Management System - AMS for both Baoviet Insurance and Baoviet Life;

• Customer portal system: Baoviet Direct, MyBVlife.

Training and developing human resources

In order to improve the operational efficiency of the business, Baoviet continues to implement a centralized management organization from the parent company of the group to its member units; implement staff rotation, improve efficiency and productivity of staff, etc. The senior and mid-level leadership team has been consolidated, with a planning and development roadmap.

Every year, the Group organizes training programs to improve management capacity, focusing on leadership skills training in the digital era associated with fintech/insurtech application orientation at the Group; building and

Risk management

Continuing to carry out corporate restructuring in order to renew the governance model in general and the risk management model in particular according to international standards and practices, Baoviet Holdings has gradually improved the system. risk management from the Group to its member units, specifically: perfecting the organization and apparatus for performing risk management tasks; promulgate strategies, policies and internal regulations on risk management such as: declaration of risk appetite, Regulations, regulations on risk management...; increasing awareness of officers and employees at the Group about the role of risk management in business activities; maintaining effective risk management in order to maximize benefits, contribute to ensuring the implementation of the Group’s business goals, towards sustainable development.

implementing training according to the general learning map, professional learning map, online training for international professional certificates (LOMA, Anzip); standardize the capacity map, the common learning map in the whole system; stipulate salary levels and pay ranges corresponding to each job grade and work efficiency; conduct training, improve qualifications for officials and employees according to the standards of titles, job levels and promotion roadmap.

Communication and Marketing

Baoviet - the leading brand in the finance - insurance industry, in recent years has been evaluated in the Top 50 most valuable brands in Vietnam. According to Brand Finance - the world’s leading brand valuation consulting firm, in 2015, Baoviet brand reached 79 million USD; By 2019, Baoviet brand value reached 267 million USD, up 338%.

As an enterprise listed on the stock exchange for more than 10 years, Baoviet has always been proactive and transparent in information disclosure and external communication, in order to create favorable conditions for customers, partners, and investors. investors, shareholders can access information about Baoviet’s activities quickly and timely with a variety of communication channels. Since 2018, Baoviet has pioneered the development of the Workplace channel across the Group, along with the creation of a working channel, has contributed to the development of a transparent internal communication channel for officials, agents and consultants. system-wide consultant.

In the securities business

Baoviet Securities Joint Stock Company (BVSC) has been a typical and best consulting company in the M&A advisory category in the market for many years. BVSC has strengthened centralized management of high-risk operations, managed investment portfolios with priority on safety criteria, and proactively adjusted business strategies in line with the market.

Implement key projects and programs

Regarding the implementation of the Group-wide Synergy Project: Since 2015, Baoviet has focused on implementing the Baoviet Group-wide Synergy Project to unleash resources and awaken Baoviet’s available potentials in terms of people. , network, and ability to develop integrated products that converge with Baoviet’s unique characteristics, helping Baoviet promote its overall strength on a sustainable foundation.

The Group has directed to promote the implementation of cross-selling products internally, especially between Baoviet Life and Baoviet Insurance and Baoviet Bank; enhance service quality, improve competitiveness, promote development of distribution channels, promote new product design and develop cross-sell products, use each other’s services, many cross-sell products has been developed as Easy Car, Easy Life, BV Happy Life, BV Easy Car, BV Happy house; Bao An Vietnamese Family, Baoviet Tam An…

Innovating, improving management capacity

The Group continues to focus on perfecting the corporate governance model, supplementing and perfecting the system of regulations on the governance mechanism throughout the Group with more than 100 new regulations and procedures that have been revised/issued in the past year. period 2016 - 2020; implement solutions to strengthen the role of the Parent Company, strengthen the coordination and linkage among member units, improve the organizational structure and minimize the overlap in the administration and management apparatus in the whole system. system; consolidating a team of senior, experienced, young, enthusiastic and highly qualified leaders, bringing a new mentality to Baoviet’s sustainable development.

SUSTAINABLE DEVELOPMENT STRATEGY RESULTS OF STRATEGIC IMPLEMENTATION DURING 2016-2020

GRI

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RESPONSIBILITY

BAOVIET’S TRANSPARENT INFORMATION AND STANDARDIZED CODES OF CONDUCT AND PROFESSIONAL ETHICS AS FOLLOWING OUR FIVE CORE VALUES OF:

Behave responsibility to customers, community, and each other, and act

with intergrity.

Improve the quality of everything you do and reach

for a higher standard.

Keep the team spirit alive and treat your colleagues with respect.

Make yourself approachable and serve your customer professionally, and as you would like to be served yourselfh.

Make yourself approachable and serve your customer

professionally, and as you would like to be served yourself.

TEAM SPIRIT

QUALITY

APPROACHABLE

DYNAMIC

SCOPE OF REPORT

Values, principles and norms of behavior

The Code of Conduct and Ethics are reported in the scale of Baoviet Holdings, including the bellowed topics:

Mechanism for counseling and reporting concerns related to code of conduct and business ethics

Communication and training on Code of Conduct and business ethics

102-16GRI 102-17GRI

GRI

102

ETHICS AND INTEGRITY

With the aim of maintaining the position, brand and reputation and sustainable development of Baoviet Holdings, beside complying with the provisions of law, internal regulations, Baoviet issued the Code of Conduct and Ethics (The Code) for Baoviet Holdings and other subsidiaries according to Decision No. 126/2016/QD-TDBV dated January 18, 2016. The Code is based on opinions seeked at the Group/Branches/ Blocks/Divisions and other subsidiaries, therefore applied to all employees at Baoviet Holdings and subsidiaries. Baoviet encourages and requires all Baoviet’s staffs to be fully aware and fully comply with the provisions of this Code in the spirit of “Learning”, “Applying” and “Creating”.

MANAGEMENT APPROACH

Baoviet issued the Code of Conduct and Ethics (The Code) for Baoviet Holdings and other subsidiaries. The Code is based on opinions seeked at the Group/Branches/Centers/Divisions and other subsidiaries, therefore applied to all employees at Baoviet Holdings and subsidiaries.


TARGETS

1. Define the norms of conduct of Baoviet staffs and employees when performing their duties and in social relations, in order to ensure fairness, integrity, civilization and compliance with their obligations and responsibilities.

2. Implement publicity and transparency of regulations and working procedures while performing tasks, contributing to improve the sense of responsibility of Baoviet’s staffs and employees, the representative in the anti-bribery and corruption process

3. Serve as the basis for Baoviet to resolve matters when Baoviet’s staffs and representatives violate the Code of Conduct when in duties and in social relations that could result in Baoviet’s prestige damage and conomic loss.

4. Build Baoviet to be strong, civilized and modern, to improve the efficiency of both administrative reformation and state management.

5. Build up a sense of discipline, ethical standards and a cultural environment in order to to achieve high efficiency in Baoviet business operations.

6. Build and improve the professional ethics; prevent corruption; practice thrift and fight against wastefulness, build up a contingent of qualified and capable cadres with good ethics and unity to fulfill the tasks of Baoviet.

7. Build up the image and prestige of Baoviet, create competitive advantages as well as promote the Baoviet brand both domestically and internationally.

8. Maintain the core values (Quality, Compassion, Cooperation, Dynamism, Responsibility) and sustainable development of Baoviet.

PRINCIPLES

1. Complying with the laws and internal regulations of Baoviet.

2. Respecting the practices, business practices and rules, commitments and professional ethics of the Proffesional Association which Baoviet has participated in.

3. Respecting and complying with the law and provisions of all agreements, contracts signed between Baoviet and its partners, customers.

4. Not taking advantage of the position, authorities, privileges, immunities and information related to Baoviet’s business secrets to seek personal and family benefits.

RULES

1. Responsibility of employees and Baoviet.

2. Responsibility of staffs and colleagues.

3. Accountability to customer, partners, suppliers and stakeholders, in which provides detailed standards and guidance.

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The Code of Conduct and Ethics for Baoviet Holdings and other subsidiaries (The Code) was issues in January 2016.On the responsibility of a Baoviet employeeEmployees should follow the rules of:

• Compliance with ethical standards in the workplace;

• Substance usage, including narcotics, psychotropic substances are strictly forbidden;

• Anti-discrimination and harassment;

• Maintain the confidentiality of Baoviet’s information and Baoviet’s staffs; protect Baoviet’s assets and prestige;

• Ensure the accuracy of books and figures at work;

• Information technology and intellectual property systems;

• Contact with media and/or the public;

• Avoid conflicts of interest with Baoviet;

• Report on misconduct;

• Do not entice staffs or customers;

• Anti-bribery and corruption;

• Money laundering prevention and combating against terrorism financing.

On the responsibility of the staffs and colleaguesOn the responsibility of the staffs and colleagues:

• Working relationships with colleague;

• Working relationships with higher level executive;

• Working relationships with subordinate staffs;

• Principles and content of resolving conflicts among staffs;

• Principles of building a healthy working environment

On accountability to customers, partners, suppliers and stakeholdersThe Code also establishes:

• Customer identification criteria;

• Repsonsibility to political organizations, socio-political organizations, socio-professional organizations;

• Responsibilities to state management agencies and the law;

• Responsibilities to the community and society;

• Responsibilities to the environment.

VALUES, PRINCIPLES AND NORMS OF BEHAVIOR


PUBLICATION OF THE CODE OF CONDUCT AND BUSINESS ETHICS

COMMITMENT AND RESPONSIBILITIES TOWARD THE CODE OF CONDUCT AND BUSINESS ETHICS

The Code of Conduct was published on Baoviet websites in both English and Vietnamese, which made it easier to access for all investors and shareholders. The entire Code of Conduct was also posted on Baoviet’s internal sites and Baoviet dictionary.

Baoviet’s staffs and employees committed to comply with the internal labor regulations, including the Code of Conduct and Business Ethics, and this commitment is specified in the Collective Bargaining Agreement between Baoviet and its employees.

In the Code, Baoviet management also committed to strictly comply with the Code of Conduct and Business Ethics, and encouraged all staffs and employees to comply with the laws and internal regulations to maintain the position and brand of Baoviet in both domestic and international markets.

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After the Code was issued, Baoviet communicated the contents of the Code to all employees via the internal email, Enewsletter systems and Facebook Workplace application to implement

COMMUNICATION AND TRAINING ON CODE OF CONDUCT AND BUSINESS ETHICS

The formal application and extensive communication of the Code throughout the system helped Baoviet’s staffs to capture and measure specific criteria in the Code of Conduct and Business Ethics in the company, and to build a professional, friendly and safe working environment.

At Baoviet, the Human Resources Department in charge of receiving reports and concerns related to the Code of Conduct and Professional Ethics. In case these concerns are related to legal issues, the Human Resources Department together with the Department of Propaganda - Legislation will coordinate to resolve the issue.

Baoviet officers and employees also need to immediately report to the Human Resources Department as detecting any wrongdoing or signs of wrongdoing. Accordingly, Baoviet also commits to keeping the identities confidential of employees reported wrongdoings/signs and prohibits any retaliation against those who report wrongdoings/signs.

MECHANISM FOR COUNSELING AND REPORTING CONCERNS RELATED TO CODE OF CONDUCT AND BUSINESS ETHICS

In 2020, Baoviet did not receive any report regarding the violation of the Code of Conduct and Business Ethics. The company is building the Whistle Blowing Policy to further strengthen the role of misconduct reporting and to protect employees and staffs who report wrongful acts according to the law and Baoviet’s internal regulations.

For further questions and concerns about the Code of Conduct, Business ethics, or wrongdoings or violations report of the Code of Conduct, Baoviet’s employees can report them to their manager or send a letter to the following address:

Human Resources Department, Baoviet Holdings7th Floor, 72 Tran Hung Dao Street, Tran Hung Dao Ward, Hoan Kiem District, Hanoi


SCOPE OF REPORT

Overview on the corporate governance at Baoviet Holdings

Baoviet’s sustainable development strategy orientation are developed, applied and reported in the scope of Baoviet Group, including:

Sustainable risks management

Roles and responsibilities of stakeholders in corporate governance for sustainability

Sustainable internal control system and internal audit activities

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SUSTAINABLE DEVELOPMENT GOVERNANCE

Complying with the Vietnam law provisions and applying the international practices in corporate governance, beside the development of a stable and solid governance structure, Baoviet issued internal regulations in order to create an unified and consistent management mechanism to control and supervise in a professional, transparent and effective manner. Since then, Baoviet can ensures the interests of shareholders and harmonize with the interests of stakeholders including customers, employees and the community in the long-term.

MANAGEMENT APPROACH

At Baoviet, corporate governance is defined as the core objective ensuring an effective and sustainable development. In order to archive it, Baoviet put efforts in promulgating standards and appling international best practices in order to build a unified and professional business management mechanism.

The corporate governance model of Baoviet is implemented based on 05 core values:

Baoviet’s corporate governance frame protects the benefits of shareholders and ensures equal treatment to all shareholders, including retail shareholders and foreign shareholders.

Baoviet’s corporate governance framework approves the rights of stakeholders as stipulated by the law and encourages cooperations among companies/ subsidiaries and relevant parties in generating incomes, jobs and ensure Baoviet’s financial stability.

Baoviet’s corporate governance framework ensures the disclosure of information concerning important issues which are related to the business operations, including financial status, business results; ownership and supervision structures have always been performed in a timely and precisely manner.

Baoviet’s corporate governance frame ensures the providing of strategic orientation for the Company, ensures effective control of the BOD, and ensures proper explanations of the BOD in front of the Company and in front of shareholders.

Baoviet’s corpo-rate governance frame ensures long term and stable benefit of shareholders and the harmony of governance elements concerning socioeconomic development and environment.

EQUALITY TRANSPARENCTY RESPONSIBILITY CLARIFICATIONRESPONSIBILITY

SUSTAINABILITY

CORE VALUES


OVERVIEW OF SUSTAINABLE DEVELOPMENT GOVERNANCE STRUCTURE

Baoviet pioneered good corporate governance practices in the development of its internal governance system, aiming to improve the quality of corporate governance, laying breakthrough foundation to develop business and achieve broader economic goals related to shareholder and investor confidence, accumulation and access to capital markets, and capital allocation throughout the Group.

PRINCIPLES AND CORE VALUESOF CORPORATE GOVERNANCE AT BAOVIET HOLDINGS

At Baoviet Holdings, Corporate Governance is identified as the core value in order to ensure the efficiency and sustainability of growth in the long term; as well as being the essential factor to improve the brand image and brand values of the Group in the contect of such stronger and deeper international integration.

Throughout the past year, under the direction and management of the Board of Directors (”BOD”), Baoviet Holdings has become one of the pioneering enterprises to apply the Best Practices in Corporate Governance, including the Principles on Corporate Governance of the Organisation for Economic Co-operation and Development (”OECD”) and the ASEAN Corporate Governance Scorecard. All principles on corporate governance related to (i) Rights of shareholders, (ii) Equitable treatment of shareholders, (iii) Roles of stakeholders, (iv) Disclosure of information and Transparency, and (v) Responsibilities of the BOD, have been actively used by Baoviet Holdings as the reference for building the internal corporate governance system at Baoviet Holdings, yielding towards improving

the quality of corporate governance as well as creating the platform to breakthrough in the business development and to achieve higher economic objectives related to the belief of shareholders and investors, to accumulate, to approach the capital market and the capital distribution in order to expand the business activities throughout the Group. In addition, Baoviet Holdings strictly enforces corporate governance regulations in accordance with Vietnamese law, including Decree 71/2017 / ND-CP of the Government and Circular 95/2017/ TTBTC of the Ministry of Finance.

In order to operate the corporate governance structure effectively, BVH has drafted and issued the system of regulations on internal management to create a unified management mechanism as well as being transparent throughout the system for supervision and reivew of the company in such professional, transparent and effective manner; to ensure the benefits of shareholders and to harmonise with the benefits of related parties, including customers, employees and the community.

1 2 3 4 5

Governance principles at Baoviet Holdings

Ensure an effective governance structure

Ensure shareholders’ rights and equal

treatment among shareholders

Ensure roles and rights of stakeholders

Ensure transparency in every operation of

the Company

Ensure that the BOD and the Supervisory

Board effectively direct and control

the operations of the Company

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Baoviet’s stable corporate governance structure is implemented based on the reasonable combinationof such elements as follows:

Solid corporate governancefoundation

Unanimously appliedacross the Group

International governance standardadoption

Alignment with general practicesand legal regulations in Vietnam

Baoviet’s corporate governance structure consists of the adequate components as required for a public company (General Meeting of Shareholders, Board of Directors, Board of Management and subordinating Committees).

A unified governance model has been established and developed across the Group to ensure the consistency in operations.

Complying with international governance frameworks and standards guided by OECD, IFC and adopting the advanced corporate governance models from foreign strategic partners’ models.

Fully complying with Vietnam legal framework and regulations, governance regulations applied to Vietnam’s listed companies, and subject to adjustments to suit Vietnam’s conditions.

In the direction of sustainable development, Baoviet has declared the commitment of senior leaders (from the Board of Directors, the Board of Management) to ensure the implementation of 3 socio-economic and environmental goals (ESG). in Baoviet’s development strategy. This strategic orientation is realized through the development of specific goals for each functional board and member unit. These objectives are quantified according to performance indicators (KPIs), which include financial (economic) and nonfinancial (environmental and social) indicators.


Carry out a review of the impacts, risks and opportunities related to the SocioEconomics

In the guiding documents, the Board of Directors frequently requested the Board of Management to focus on forecasting, updating and closely monitoring actual developments in the economic, social and environmental situation in business activities. to proactively adjust flexibly and promptly give appropriate and effective orientations, decisions and solutions, ensuring the direction and successful implementation of the annual business plan and business strategy.

Supervise the implementation of the Group’s decisions, resolutions and policies issued by the Board of Directors related to sustainable development and environmental and social issues.

Directing the implementation of sustainable development report

The Board of Directors oversees the implementation of Baoviet’s strategy, which includes the sustainable development strategy. The Board of Directors is responsible for approving the implementation policy and approving the audited financial statements and sending them to the Supervisory Board for appraisal before submitting to the General Meeting of Shareholders for consideration and approval. The Board of Directors assigns the Executive Board and the Division to be responsible for the sustainability report, ensuring that the content is developed in accordance with international standards and practices and Vietnamese conditions.

Baoviet Holdings’ corporate governance framework includes the following components:

ASSESSMENT OF CAPACITY AND IMPLEMENTATION IN RELATION TO SUSTAINABLE DEVELOPMENT

• Organization and Structure• Supervision and Training• Remuneration• Plan of successors

• Ethic and relationship of members of BODs• Assets – Liabilities Management Committee• Remuneration and Nomination Committee• Strategy and Investment Committee• Audit Committee

• Vision and Mission• Strategy and business plan• Monitoring the effectiveness of Group’s operation & governance• Information technology strategy• Human resource management

• Risk management process• Internal control process

• Financial and non-financial reports• Continuous communications

• Code of conduct• Business ethic• Working environment/Safety and Healthy• Social responsibility

(Refer to Chapter IV content:Reports of the Board of Directors and Remuneration of the

Board of Directors and Supervisory Board)

Structure of board of directors

(Refer to the content of Chapter IV: Reports of the Board of Directors and Committees under

the Board of Directors)

Operation and effectiveness of BOD

(Refer to the report in Chapter II of the Annual Report)

Strategy, plan and Monitoring

(Refer to content of Chapter IV: Internal control system)

Risk management and compliance

(Refer to the content in Chapter VI of Annual Report)

Transparency and communications

(Refer to the content in Chapter V of Annual Report)

Responsibilities (social, ethical, environmental)

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3

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5

CORPORATE GOVERNANCE FRAMEWORK OF BAOVIET HOLDINGS

Baoviet implements sustainable development orientation from senior leaders to the performance committees to evaluate these KPIs and report to the Board of Directors. It can be said that Baoviet’s business activities are more and more closely linked with social and environmental issues.

Strategic orientations and action plans related to socio-economic - environmental issues are given at the Annual General Meeting of Shareholders. Accordingly, the Board of Directors organizes the implementation of resolutions approved by the General Meeting of Shareholders, and the Executive Board directs them to concretize them into actions through activities at the Parent Company and its member units.


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Establishing strategic goals and directives on sustainable development

Since 2012, Baoviet has announced a directive on sustainable development engaged into the development strategy with commitments from business leaders to ensure to achieve three targets, including economic, social and environmental objectives. This strategic directive is adopted through establishing specific targets for each functional department or division. Those objectives are quantified and standardized into KPIs, including both financial and non-financial KPIs.

Baoviet required high level managers and employees among divisions to adopt this directive through assessing KPIs and reporting to Board of Directors. This thus promoted close engagement of social and environmental issue to business activities.

Monitoring and providing guidance on sustainability

The Board of Directors monitors quarterly sustainability progress and reports directly submitted from the Management Board, specifically:

Reports submitted to the periodically Board of Directors meetings: Baoviet’s Board of Directors maintains quarterly meetings to discuss, agree upon, and provide timely guidance for the group’s business operations. At these meetings, the Chief Executive Officer, Committees under the Board of Directors, and managers are to report on major economic – social – environment issues that may impact on the business performance. The Board of Directors is to review and provide guidance for business operations by monitoring socio-economic situation to make necessary adjustments to the business strategy, leading the delivery of business targets and implementation of the Resolutions approved by the Annual General Meeting of Shareholders, and deploying corporate social responsibility projects. The Chief Executive Officer is to adopt the Board of Directors’ Resolutions issued after the meetings.

Reports are directly submitted to the Board of Directors in written proposals for approval: The Chief Executive Officer and managers may report directly to the Board of Directors on economic – social - environmental issues. The Board of Directors is to circulate official letter for members’ views on these issues and issue the Resolutions, Decisions, Notices for the Chief Executive Officer and relevant departments to implement. The Resolutions and Decisions by the Board of Directors are made given the consensus of its members, the shareholders’ benefits and the Group’s sustainable development.

Reviewing impacts, risk, and pportunities regarding economic – social – environment issues: In all the official documents issued, the Board of Directors regularly requires Board of Management to focus on business forecasts, update and properly monitor economic, social and environmental context. This helps business leaders to make prompt corresponding adjustment and timely providing proper guidance and measure to ensure Baoviet to delivery success of business strategy and targets.

Monitoring the implementation of decisions, resolutions and policies regarding sustainable development and socialenvironmental issues.

Appraising the capability and methods of implementing sustainability activities

Sustainability strategy and action plans regarding economic – social – environmental issues are discussed and approved during the Annual General Meeting (AGM). The Board of Directors thus takes responsibility of implementing the Resolutions approved by the AGM, instructing the Board of Management to adopt specific initiatives to the Parent company and subsidiaries. Heads of functional Blocks and departments are responsible for defining their own KPIs, and expanding these initiatives to subsidiaries. At each subsidiary, the sustainability strategy, action plans, and objectives were circulated to employees during its business plan meetings, labour conferences, training courses and communication sessions.

Instructing adoption of the Sustainability Report

The Board of Directors is responsible for implementing Baoviet’s business strategy, including sustainability strategy. In addition, the Board of Directors is to approve plans on adoption of the audited financial statements and send to the Supervisory Board for assessment before submitting for the Annual General Meeting of Shareholders’ final approval. Moreover, the Board of Directors is in charge of assign functional divisions to prepare Baoviet Sustainability report in compliance with International Standards, Vietnamese Laws and Practices, and local context.

ROLES AND RESPONSIBILITIES OF STAKEHOLDERS IN CORPORATE GOVERNANCE FOR SUSTAINBILITY

ROLE AND RESPONSIBILITIES OF BOARD OF DIRECTORS

Effectively promoting the leading role in 2019 business goals, strategies and implementing the 2016-2020 strategy which aiming to strengthen the internal cooperation in order to promote the overall strength of the entire Group, the Board of Directors of Baoviet Group has brought solutions to improve efficiency in corporate governance towards the growth and sustainable development strategies “Learning, Applying, Creating” in 2020


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Remuneration and Nomination Committee

The Remuneration and Nomination Committee is an integrated part of the corporate governance structure of Baoviet Holdings, established by the Board of Directors (BOD). Main function of the Remuneration and Nomination Committee is providing consultancy and advisory to the BOD in establishing human resources developmentstrategy, especiallysenior management resources development strategy of the Holdings.

In 2020, the Remuneration and Nomination Committee held 02 direct meetings:

• Evaluate the performance in 2018, discuss implementation plan for 2020;

• Reviewing nomination policy, requirements of senior;

• Incorporate salary and bonus policy into achieving management and sustainable development goals.

Additionally, the Committee also conducted 35 meetings under written form to evaluate proposals of the Parent company and its 100% subsidiaries to propose to Board of Director to review and determine.

The Supervisory Board is a body in the structure of Baoviet’s Board of Management, which is authorized to represent the Annual General Meeting to supervise the management and operation of the BOD, CEO and all business operations of the Group in accordance with regulations and Baoviet policy; taking responsible for accomplishing all missions in AGM.

The Supervisory Board appraises the comprehension, legality and integrity of business performance report, quarterly, interim and annual financial reports of the Group; management report of the BOD; and submits them to AGM.

In 2020, the Supervisory Board conducted 04 periodical meetings (including 02 regular sessions, 02 extended sessions) and collecting opinions in written form to propose to the Board of Directors solutions to improve the internal control system to contribute to the sustainable development of the Group. ensuring maximum legal benefits for shareholders.

The Investment - Strategy Committee

The Investment - Strategy Committee, established under the Board of Directors’ decision, is one part of Baoviet Holdings governance structure. The main function of the Committee is to give consultation and advisory to the Board of Directors in developing business strategy including sustainability components, investment strategy; and to review and assess investments under the Board of Directors’ authority.

In addition, the Investment – Strategy Committee also provides advisory for the BOD in investment aspects, embraces Baoviet capital resources towards sustainable development and follows international standards regarding responsible investment. The Committee also provides consultancy on constructing regulations on investment managing and implementing evaluation the results of portfolio and investment policies.

In 2020, the Investment - Strategy Committee conducted 02 direct meetings and 31 meetings under written forms:

• Summary of corporate governance in 2020 and 2021 plan;

• Assigning duties for the Committee members.

In addition, the Committee conducted 15 meeting under written form of collecting written opinions related to the 2020 Procurement Investment Plan; Business plan for 2020; Increasing capital for subsidiaires; Plan for the distribution of profit after tax in 2019 of the subsidiaries; Conversion of using purposes lands and proposal for rearrangement of the lands under management and use by the Group; The growth scenario in the period of 2021-2025; Classification of strategic investments, financial investments, investment projects under the authority of the Board of Directors.

The Chief Executive Officer

Baoviet Holdings Chief Executive Officer (CEO) takes responsibility for managing the business operations to perform the rights and obligations of the owner, shareholders or capital contributor of subsidiaries or partially owned companies, and implementing sustainability plans by developing specific initiatives for each Functional Block/Department and subsidiaries;

Chief Executive Officer is accountable to the Board of Directors in supervising and guiding the capital representatives in the delivery strategic plans and objectives while balancing economic – environmental – social factors, and fulfilling the business targets of Baoviet’s subsidiaries and partially owned companies. This aims to preserve and foster the capital, enhance efficiency of using resources in subsidiaries.

Moreover, CEO is responsible for providing guidance and monitoring subsidiaries’ development goals to ensure balance among economic, social, and environmental factors. CEO also is to report economic - social - environmental impacts, risks and opportunities to the Board of Directors on a quarterly basis to enable it to make necessary adjustments to the business operations; produce ad-hoc reports on economic – social issues that may dramatically impact on businesses.

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02

35

15

DIRECT MEETINGS

DIRECT MEETINGS

MEETINGS UNDER WRITTEN FORM

MEETING UNDER WRITTEN FORM


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ROLES AND RESPONSIBILITIES OF COMMITTEES UNDER THE BOARD OF DIRECTORS IN IMPEMENTATION OF SUSTAINABILITY

ROLES AND RESPONSIBILITIES OF THE SUPERVISORY BOARD

ROLES AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS


Risk Management Council

Baoviet Holdings’ Risk Management Council is responsible for designing and adopting the risk management framework at the Parent company and its subsidiaries, cooperating with subsidiaries in risk management, and monitoring their risk management activities to ensure that requirements of international standards and practices are met.

In 2020, Risk Management Council continues to complete legal frame for risk management at the Parent company and its subsidiaries in accordance with international standards, simultaneously cooperates and monitors risk management activities at subsidiaries to achieve efficiency in corporate governance. Risk Management Council in the Parent company and subsidiaries conducted periodical meetings to review all risk types and propose appropriate risk mitigation measures.

Risk Management Council in the Parent company and subsidiaries successfully supported the Board of Management in managing risks on all businesses, contributing to the Group’s resilient business growth.

Board of Directors

• Implementing sustainability plan in accordance with guidance of CEO and supervising the delivery of sustainability projects.

• Developing and undertaking sustainability initiatives which corresponds to each subsidiary and complies with the sustainable development strategy.

• Implementing sustainability projects at the Parent company and monitor implementation of sustainability in subsidiaries to ensure the balance among economic, social, and environmental factors.

• Developing sustainability initiatives and cooperating with the Blocks/Departments to adopt and implement them in accordance with plan.

• Encourage and promote sustainable development among the whole Group.

Baoviet’s subsidiaries cooperate to raise sustainability awareness and focus on business initiatives that aim at sustainability, protecting the benefits of the group and subsidiaries.

Baoviet issues policies and directives on cooperation among subsidiaries within the Group to effectively use all resources, exploit strengths, enhance the professional competence of subsidiaries in order to maximize the efficiency.

The capital representative, within his/her authority, is responsible for implementing policies and plans, providing guidance for subsidiaries to maximize the Group’s overall business performance.

ROLES AND RESPONSIBILITIES OF THE SUBSIDIARIES

ROLES AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS


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DEDICATED WORKING TEAM ON SUSTAINABLE DEVELOPMENT IN BAOVIET

In order to improve the effectiveness of the orientation, direction and implementation of activities related to sustainable development, Baoviet Holdings has strengthened and supplemented human resources for the Đeicated working team on sustainable development in Baoviet, bringing the total number of members up to 45 people, including personnel at the Parent Company of Baoviet Holdings and its subsidiaries.In addition, Baoviet has organized many training courses to raise awareness on sustainable development for members of the Dedicated working team with the participation of international experts through zoom, teleconference, Online interview/survey. This is considered as a tool to guide and support the preparation of Sustainability Reports with preeminent features, making the reporting process convenient, accurate and compliant with GRI Standards.

DEDICATED WORKING TEAM IN PARENT COMPANY DEDICATED WORKING TEAM IN SUBSIDIARIES

STEERING TEAM

COORDINATIONTEAM

Department/Division of Parent Company

Internal Audit

Education and Training Center

Information and Technology Center


STEERING TEAM

COORDINATION TEAM

DEPARTMENT AT SUBSIDIARIES

Chairman of the BOD

• Direct and lead of the implementation of the group’s sustainable development strategy

Strategy Department Branding & Communication Department

• Adjust and Supervise the implementation in subsidiaries.

• Supervises activities regarding sustainable development.

Finance & Accounting Department

• Supervises budget and expenses relating to sustainable development.

• Supervise the energy monitoring consumption in Baoviet’s buildings and offices

Investment Department

• Applying responsible investment principles in project management

• Implements investment activities with sustainable point of view.

Inspection – Internal Audit Department

• Reports on internal control and internal audit activities in the group.

• Carries out independent audit projects.

Training Center

• Take part in implementing training programs for sales agents.

• Develops training programs for employees according to education and professional training map.

IT Center

• Develops the information technology systems as the basis for business operations including business management and customer services.

• Standardize the business performance process, implements new service activities.

Chief Executive Officer

• Lead and implement the strategy management and assess sustainable development activities efficiency across the group

• Implement Sustainable Development projects following Baoviet Holdings strategy and customize to meet with subsidiaries specific activities.

• The representatives of subsidiaries are responsible for implementing the Sustainable Development projects at their affiliates and branches.


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DEDICATED WORKING TEAM

DEPARTMENT AT BAOVIET HOLDINGS

• Implement Sustainable Development working aspects at the Parent company and supervise the performance results of sustainable goals at subsidiaries.

• Coordinate with other departments in order to promote implementation of sustainable development aspects for Baoviet Holdings.

Communications & Branding Division

General Secretary Division

Legal & Compliance Division

Risk Management Division

Human Resources Division

Strategy Development Division

Investment Division

Property Management Division

Accounting Division

Internal Audit Division

Marketing/Communications and Branding Division

General Secretary Division

Administration Division

Risk Management Division

Education and Training Division

Internal Audit Division

Legal & Compliance Division

Product Development Division

Customer Service Division

Accounting Division


HEAL

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DIS

TANCING

FACE MASKS DISINFECTION

NO GATHERINGS

ESTABLISH THE COVID-19 STEERING COMMITTEE FOR THE SAFETY AND EFFICIENCY OF BUSINESS OPERATIONS

Implementing Directive No. 05-/CT-TTg, dated January 28, 2020 of the Prime Minister, to ensure flexibility and timely response in the context of the Covid-19 epidemic, Baoviet Holdings has immediately established a Steering Committee for Covid-19 pandemic prevention and control. The members of the Steering Committee include: Secretary of the Party Committees of Baoviet Holdings, members of the Board of Directors, General Director of Baoviet Holdings and leaders of functional departments throughout the system, constantly updating and proactively timely and effective monitoring

and direction in disease prevention and control such as: Strictly implementing the “5K Recommendation of the Ministry of Health: Masks, Disinfection, Disinfection, Medical Declaration and Range”; develop a rotational working regime to distance: “onsite-offsite:, reduce the risk of infection, cross infection in the working environment, online meeting; regularly organize inspection and strictly handle cases of violations in the prevention and control of the Covid-19 epidemic in association with the responsibilities of the heads of the Committees and units.


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After a period of implementation, Baoviet Holdings has built a quick, effective and immediate epidemic prevention and control system, ensuring to meet the requirements of safety, efficiency of labor productivity and business efficiency. system-wide. In 2020, Baoviet’s member companies nationwide have successfully piloted and spread the model of organizing online insurance seminars, investment seminars, etc. attracting thousands of visitors, and achieving outstanding results in business results in 2020.

THE IMPLEMENTATION ON ASSESSING THE OPERATION OF THE BOD AND OF THE BOD’S MEMBERS AND OTHER COMMITTEES OF THE BOD IN 2020 ACCORDING TO THE GOOD PRACTICES ON CORPORATE GOVERNANCE WORLDWIDE AND REGIONALLY

In order to improve the assessment activities of the BOD according to the good practices on corporate governance worldwide and regionally, in 2020, the BOD implemented the regulations on operation of the BOD, completed the assessment activities on the procedures and specific assessment criteria regarding the operation of the BOD, of each BOD’s members and the committees of the BOD, specifically as follows:

The above assessment criteria were constructed based on the references of the standards at Part E – Responsibilities of the BOD in the Question set level 1 – Corporate Governance scorecard for ASEAN regional enterprises, Regulations on corporate governance of OECD and referential standards on assessing the operation of the BOD and of the BOD’s members in developed countries worldwide.

Assessment criteria on each BOD’s members

including criteria regarding17

Interactive level amongst BOD’s members;(i)

Quality of the comments/recommendations of the BOD’s members;

(ii)

Implementation of tasks;(iii)

Roles of BOD’s Chairman. The Remuneration and Appointment Committee and the Corporate Secretary Division held responsibilities on consulting to the BOD throughout the process of implementing the assessment.

(iv)

Assessment criteria on the operation of

the BOD includescriteria regarding40

Rights and responsibilities of the BOD;(i)

Structure of the BOD;(ii)

Procedure of the BOD;(iii)

Operating results of the committees of the BOD;(iv)

Assessment of implementing the resolutions of the AGM and the annual business plan.

(v)

ASSESSING 2020 CORPORATE GOVERNANCE PRACTICES OF THE BOD, BOD’S MEMBERS AND OTHER BOD’S COMMITTEES


In Dec 2020, the BOD implemented the assessment results on the operation of the BOD in 2019, the committees of the BOD and of the BOD’s members with the results specifically as follows:

RESULTS ON THE ASSESSMENT OF THE OPERATION OF THE BOD AND OF THE COMMITTEE OF THE BODGENERAL COMMENTS ON THE ASSESSMENT RESULTS REGARDING THE OPERATION OF THE BOD, AND OF THE BOD’S MEMBERS AND THE COMMITTEES OF THE BOD

Assessed results on each BOD’s members

Based on 13 criteria on issues3Interactive level amongst BOD’s members;(i)

Quality of the comments/recommendations of the BOD’s members; (ii)

Implementation of tasks; the BOD’s members have self-assessed the performance of their duties, and cross-assessed the activities of other BOD’s members.

(iii)

Weak To be improved Average Good Very good

No. Contents Points Rate Notes for improvement1 Rights and responsibilities of the BOD 4.5

2 Members and structure of the BOD 4.7

• The independence between BOD members and BOM and influential shareholders

• Supplement the independent BOD’s members as stipulated by the regulations on the listed companies

3 Procedure of BOD 4.6

3.1. Participation in BOD’s meetings 4.6

3.2. Access to information 4.6

3.3. Opinion collections in written forms 4.3

3.4. Appoint and re-elect the BOD (if any) 4.7

4 Performance of Committees under BOD 4.4

4.1. Remuneration and Nomination Committee 4.3

• Members of the Remuneration and Appointment

• Committee are majorly independent members i.e. over 50% Chairman of the Remuneration and Appointment Committee is independent member.

4.2. Audit Committee 4.2

• The Audit Committee includes NED with majority of BOD members as independent.

• Chairman of the Audit Committee is an independent BOD’s member.

4.3. The Strategy & Investment Committee 4.6

4.4. The Assets-Liabilities Committee (ALCO) 4.5

5 Assessed the implementation of the AGM ’s resolutions and the annual business plan 4.5

Result: 09/09 BOD’s members were 4.4 to 4.8 point (maximum is 5 point) at the rate of “VERY GOOD” and “GOOD”.

In order to strengthen the responsibilities of the BOD, to comply with the standards regarding the responsibilities of the BOD at the ASEAN corporate governance scorecard, the BOD needs to continue to strengthen the tasks as follows:

Continue to strengthen the marketing on the mission/vision of the Group, consider the business strategy annually to adjust with new changes;

1.

Consider to supplement the regulations on the organization of the meeting amongst non-executive BOD’s members without the presence of the executive members in the regulations on corporate governance/Regulations on operation of the BOD;

2.

Strengthen the independence amongst BOD’s members with the BOM and big shareholders of the Group via the vote of independent BOD’s members participating in the BOD, and to participate in the activities of the committees of the BOD;

3.

Continue to improve the quality of reports, consultancy to the BOD regarding issues upon the competence and responsibilities of the Committees of the BOD;

4.

Strengthen the information sharing amongst BOD’s members via the provision, update on information regarding the business of the Group, the market status as well as the opportunities on business development; encouraging BOD’s members to provide assessment, in-depth assessment on the issues upon the competence of the BOD, providing practical and feasible recommendations on issues in the agenda for the BOD to discuss and to decide.

5T.

The BOD fostered the roles and responsibilities in the corporate governance, ensuring the organization structure as stipulated by the Law on Enterprise and the Charter of BVH.

1.

The BOD implemented properly and completed the resolutions of the 2020 AGM and the 2021 Business plan.2.

The committees of the BOD contributed significantly in consulting to the BOD regarding issues upon the competence of the Committees such as strategy, investment, appointment of senior staff, remuneration and bonuses, audit and management of assets and liabilities, etc.

3.

BOD’s members had very good rate of information sharing, proactively provided the assessment, analysis in depth regarding issues upon the competence of the BOD, implemented the responsibilities in such honest, careful manners for the most benefits of shareholders and of BVH.

4.

BOD’s Chairman fostered the roles in implementing effectively the operation of the BOD, encouraging the BOD’s members in providing opinions and other contents upon the competence of the BOD; ensuring the construction of operation plan of the BOD prior to the fiscal year and submitting the meeting materials for opinions from BOD’s members at least 05 days prior to the meeting date.

5.


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ORIENTATIONS ON THE OPERATION OF THE BOD IN 2021

In 2021, the BOD shall continue to maintain the meeting regime quarterly as stipulated and to organise the meeting upon the form of opinion collection in written form from BOD’s members in order to implement the 2021 AGM’s resolutions, to implement the issues regarding the corporate governance and to direct the implementation of key tasks in 2021 across the Group, specifically as follows:

Implement the Resolutions of the 2020 AGM, focusing on completing the business plan in 2020 and to closedly align to complete the Strategy for the period of 2016-2020, construct the strategy for the period of 2021 – 2025, visions to

2030;

Improve the capability in corporate governance base on the application of the best Practices in order to ensure the ultimate exploitation on the effiency, creating sustainable values in the long run, as well as attracting investment capital into the business;

Continue to foster the built-in values over the past years, fiercely implement the business solutions with the motto “the new Normal, the new Mindsets” in 2021, focusing on the issues as

follows:

Cooperate with the State managerial agencies in order to construct the legal platform, develop the market, develop new products, continue to focus on the implementation of the social welfare related activities; community support upon the direction of the Communist Party and of the Government, being the pioneer enterprise in the acts of environmental protection, yielding towards the implementation of the sustainable development strategy of BVH.

Modernise the customer communication system based on IT and online platforms. Research, apply, learn to own the high technology, create differences on services and products. Digital transformation in the corporate governance activities, management;

Continue to implement the Planning of senior HR; Implement the internal HR rotation; exploit the current resources; Implement the evaluation of working performance based on clear KPIs;

Divisify products and distribution channels, expand networks, provide professional services, create differences.

(i) (ii) (iii)

THE VIETNAMESE BRAND

267USD MILLION

AFFIRMING

According to the list of Top 50 most valuable company brands in Vietnam announced by Brand Finance

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ALLOWANCES OF THE MEMBERS OF THE BOARD OF DIRECTORS, SUPERVISORY BOARD AND MANAGEMENT BOARD

Social insurance, health insurance and other types of insurance3.

In addition to participating in compulsory social insurance, members of the Board of Directors and Supervisory Board can also participate in Health Insurance, Cancer Insurance, An Phat Tron Doi Insurance, Huu Tri Vung Nghiep Insuarance and An Nghiep Thanh Cong Insuarance.

Periodic health check regime4.

Members of the Board of Directors and the Board of Supervisors received annual health checks at high quality medical hospitals in Vietnam and were paid at the actual cost incurred.

Business allowance5.

Members of the Board of Directors and Head of Supervisory Board are allowed to use business-class air tickets and stay at hotels (domestic and foreign) according to the 5-star hotel standard at work places or contracted under business trips according to the prescribed rate Baoviet’s regulations.

Supervisors are allowed to use the general airline ticket class and be paid for room charges according to the actual arising or contracting trips but not exceeding Baoviet’s prescribed level.

Use of car of Baoviet Holdings1.

Members of the Board of Directors, Controllers and the Executive Board may use company’s cars to perform the management, administration, inspection and supervision of Baoviet’s business activities according to their powers and responsibilities of each member respectively.

Full-time members of the Board of Directors, Head of the Supervisory Board are equipped with Taxi cards and / or granted Taxi technology accounts to serve business travel according to Baoviet’s prescribed norms.

Use of telephone2.

Baoviet equips a mobile phone up to 01 time for a period of 02 consecutive years for members of the Board of Directors and the Supervisory Board;

Baoviet pays mobile phone charges and assigns fixed telephone charges at private houses to the full-time members of the Board of Directors and the Supervisory Board according to our regulations.

In addition to the expenses mentioned above, members of the Board of Directors and the Supervisory Board are on business trips and are entitled to additional accommodation allowances to offset other expenses incurred.

REMUNERATION POLICY FOR THE BOD, THE SUPERVISORY BOARD AND THE MANAGEMENT BOARD

Salaries of full-time Board members and Supervisory Board are determined in accordance with the Government’s Decree No. 53/2016 / ND-CP of June 13, 2016. Accordingly, the salary is linked to the level of accomplishment of the Baoviet’s production and business targets.

WAGE REGIME

Award budget of members of the Board of Directors and the Supervisory Board were extracted from the profit after tax of the company based on the results of the 2018 business plan that approved by the General Meeting of Shareholders in Decision No. 01/2020/NQ-ĐHĐCĐ-TĐBV dated on June 29, 2020, that equal to 648,188,000 dong (0.06% of profit after tax).

AWARD POLICY FOR THE BOD, THE SUPERVISORY BOARD AND THE MANAGEMENT BOARD

Use of car of Baoviet Holdings

Social insurance,

health insurance and other types of

insurance

Business allowance

Use of telephone

Periodic health check regime

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Payment of monthly remuneration to non-specialized members of the Board of Directors and the Supervisory Board shall comply with the Resolution of the Annual General Meeting of Shareholders of Baoviet Holdings.

The remuneration fund in 2020 for non-specialized members of the Board of Directors and the Supervisory Board of Baoviet approved by the Annual General Meeting of Shareholders in 2020 is as follows:

The actual compensation budget is 1,754,413,793 dong that determined based on the number of single-office holding managers in 2020 and the working time of each person:

REMUNERATION PAID TO PART-TIME BOD MEMBERS AND SUPERVISORY BOARD MEMBERS IN 2020

No. Full name BOD members and Supervisory Board Actual remuneration (dong)

1 Do Truong Minh Member of the BOD 228,000,000

2 Teruo Shimmen Member of the BOD 228,000,000

3 Kenji Yoneda Member of the BOD 228,000,000

4 Than Hien Anh Member of the BOD 228,000,000

5 Tran Thi Dieu Hang Member of the BOD 228,000,000

6 Nguyen Xuan Viet Member of the BOD 228,000,000

7 Nguyen Minh Hoang Member of the BOD 32,413,793

8 Nguyen Dinh An Member of the BOD 114,000,000

9 Vu Thanh Hai Member of Supervisory Board 120,000,000

10 Tran Thi Phuong Member of Supervisory Board 120,000,000

TOTAL 1,754,413,793

Pursuant to Decree No. 53/2016/ND-CP regulations on management of employees, salaries, remuneration and bonuses of joint-stock Companies, the actual compensation budget was determined based on the number of single-office holding managers and the working time of each person. Besides, the maximum compensation budget of multiple-office holding managers shall not exceed 20% that of single-office holding managers.

PRINCIPLES OF REMUNERATION

THE ACTUAL REMUNERATION IN 2020

REMUNERATION

THE ACTUAL COMPENSATION

BUDGET

Remuneration for the BOD members: VND20 million/person/month.1.

Remuneration for the Supervisory Board members: VND10 million/person/month.2.

The actual compensation budget for BOD: 1,514,413,793 dong;1.

The actual compensation budget for Control Board: 240,000,000 dong.2.

SUSTAINABLE DEVELOPMENT GOVERNANCE REMUNERATION POLICY FOR THE BOD, THE SUPERVISORY BOARD AND THE MANAGEMENT BOARD

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In 2020, Baoviet Holdings continues to implement risk management strategies and policies; risk appetite statement and key risk limits; apply procedures regarding to international practices; enhance the awareness and setting the risk management culture, proactively considering risk factors in business activities; appropriate using the resources and focus on solutions to improve the effectiveness of the

enterprise risk management system.

RISK MANAGEMENT


113GENERAL INFORMATION

SUSTAINABLE DEVELOPMENT GOVERNANCE RISK MANAGEMENT

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OUTSTANDING RESULTS IN 2020

Develop the Risk management strategy for the 2021-2025 period, review the Risk management policy, Risk appetite statement and Key risk limits; Make monthly/quarterly/yearly risk reports.

1.

Supporting Baoviet Holdings’ subsidiaries to develop and complete regulations on risk management and review risk management policies and risk appetite.

5.

Organize periodically RMC meetings at Baoviet Holdings and Subsidiaries2.

Amendment and supplement: Baoviet Holdings’ Risk management regulation; Decision to establish Risk Management Council of Baoviet Holdings; Risk appetite statement and Key risk limits; Regulations of Baoviet Holdings on grading, classification and determination of deposit investment limits for commercial banks and financial companies; Regulations on Risk management in corporate bond investment.

3.

Assessing the impact of the Covid-19 pandemic on the Baoviet Holdings and subsidiaries business; build case scenarios to minimize adverse impacts, improve business efficiency in the whole system.

4.

In 2020, the Risk Management Council (RMC) of Baoviet Holdings and its subsidiaries held full meetings to evaluate and monitor the implementation of risk management in whole Baoviet Group, continue to improve the legal framework on risk management, identify key risks that need to be focused on management, strengthen policies, measures and models to assess and reduce risks in an overall way, ensuring all risks are managed in a timely and effective manner.

In the RMC meetings, the issues are discussed and resolved in the RMC meetings, including:

• Update regulations on risk management, discuss on strategic contents, such as: Risk management policy, Risk appetite statement and the key Risk limits...

• Review, analyse, evaluate all the risks and propose appropriate control measures such as insurance risks, credit risks, operating risks, liquidity risk, market risk and other significant risks.

Risk control was implemented via the strong coordination amongst the RMC and other Committees, Blocks, Centres, and Departments of Baoviet Holdings as well as amongst Baoviet Holdings and subsidiaries

• Coordinate with Strategy and Investment Committee to share information, data, and provide recommendations and solutions related to risk management in strategic and investment field of Baoviet Holdings;

• Coordinate with Audit Committee to review material potential risks, especially those related to the compliance of policies, standards, procedures and legal regulations in order to promptly provide relevant solutions; coordinate to develop the risk indicators;

• Coordinate with Assets-Liabilities Committee (ALCO) to exchange information on risks related to the balance of assets and liabilities at the RMC meetings. Representatives from the RMC shall be invited to the periodical meetings of ALCO to provide opinions and recommendations on related risks.

RISK MANAGEMENT

PLAN IN 2021

RISK MANAGEMENT ORIENTATION

IN 2021

• Strengthen corporate and support between Holdings and subsidiaries to enhance effectiveness of risk management framework.

• Continue to mantain and improve the effectiveness of RMC meeting of Holdings and subsidiaries; improve the effectiveness of information exchange, coordination between the three layers of defense.

• Use qualitative and quantitative method to identify, assess and mitigate risks; improving overall risk management ability to support insurance, investment and financial service effectively.

• Improve the quality of risk report in order to advise the Executive Board to make decisions; to ensure that the key risks are managed and responsed promptly.

• Enhance risk management for the information technology system at Baoviet Holdings and susidairies; continue to implement the information security solution and improve the safety of the system, monitor and alert the risk to customers, staff and related functions.

• Perform rehearsals of hypothetical situations in the event of an IT system failure.

Implement the Risk management strategy 2021-2025; Risk management policy, Risk appetitle statement and the key risk limits.

1.

Review risk management models, focus on managing key risks; Issue risk management report.4.

Organize internal training courses, intensive training on risk management at subsidiaries in which 100% charter capital is owned by Baoviet Holdings.

5.

Organize periodically RMC meetings at Baoviet Holdings and Subsidiaries as planned.2.

Improve risk management structure in subsidiaries with 100% of charter capital owned by Baoviet Holdings.3.


FINANCIAL REPORTING AND MANAGEMENT REPORTING

We establish non-financial information providing and financial reporting mechanism to enhance the transparency of information provided to related parties. It also helps to create positive image of Baoviet in the eye of investors and the public. Moreover, management information will be transferred smoothly; operational and financial information are reported precisely and promptly the management of the Group.

INFORMATION SECURITY

During the transactions with the customers, Baoviet Holdings and subsidiaries are exposed to many customers’ information, which is related to their business and production activities, financial or other private information. This is sensitive information and needs to be protected against unauthorized access. Leakage customer information may lead to reputational damage and loss of customer trust (and even severe losses of the customers). Therefore, being fully aware of the importance of information security for Baoviet and our customers, we have implemented and applied necessary methods against information leakage to ensure system security contributing to sustainable development.

Baoviet has implemented ISMS to ensure confidentiality, integrity and availability for Baoviet Holdings and subsidiaries’ information. One of major duties in 2017 is to develop the infrastructure and to apply information technology in accordance with international standards, to ensure the synchronization, modernity, efficiency and security. Baoviet Holdings and Subsidiaries continue to reinforce risk management related to information technology system, focus on information security and business continuity at The Group, such as:

COMPLIANCE AND INTERNAL CONTROL

Along with the internal control system, we conduct the evaluation of compliance risks to support the sustainable development in each business line and throughout the Group. We manage the risks of complying with regulatory laws, internal regulations and procedures of the Group and with regulations on employee’s interest such as remuneration and HR policies. In addition, Baoviet always complies with the information disclosure responsibilities, especially for the public companies in order to gain customer confidence in the transparency market. Timely and precise information is not only meaningful to the market and the investors but also support corporate to have opportunities to build up and enhance its prestige, aiming to the sustainable development.


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SUSTAINABILITY RISK MANAGEMENT

SUSTAINABLE DEVELOPMENT RISK MANAGEMENT PROCEDURE

1.Identify exposure to loss (risks) and sustainable

opportunities

5.Select the best combination

of techniques

2.Explore alternative techniques and

model to manage the risks and maximize sustainable opportunities

and benefits

4.Implement the solutions

and techniques

3.Assess probability, impact, benefits and costs of risks

and opportunities

6.Monitor, correct,

reassess

Risk management strategy that is built and operated effectively will help businesses overcome the fluctuations of the business environment, take advantage of opportunities for long-term growth. A good risk management system supports Baoviet fulfilling its strategic goals by forecasting the likelihood, the impact of risk incidents and business opportunities in different scenarios; tracing source of damage and helping the Group to respond effectively to business risks.

Baoviet Holdings has applied the best practice standards such as ISO 27001: 2013, ITIL, Cobit to manage information security in the enterprise.

1.

Protecting BaoViet and its customers from advanced persistent threat (APT) attacks and the leakage of business data as well as customer information.

2.

Mitigate/avoid the risks of business operation when the information security incidents of IT systems.3.

Applying advanced techniques with comprehensive IT security system to provide products and services to customers completely, creating confidence in the Baoviet’s brand.

4.

Implement a disaster recovery (DR) site to improve the availability of information technology systems to provide services to customers and operation businesses that are stable and continuous.

6.

Training the users on security awareness and implement the regulations on protection of information technology assets, business data and customer information.

9.

Co-ordinate with the auditing companies, major partners/customers to check the IT Security control to ensure that Baoviet fully complies with the commitments on confidentiality, risk mitigation measures to protect customer data.

5.

Periodically implement Rehearsal Emergency Response with risks of information technology incidents such as network attacks, disasters, IT system failured to ensure business continuity.

7.

Implement various solutions to minimize the risk of business data loss, protecting customer information with data loss prevention (DLP) tools, encryption, access control, decentralization and IT compliance audit.

8.


PRODUCTS

SUSTAINABLE DEVELOPMENT BAOVIET

SERVICESMANAGEMENT

SYSTEM

SOCIAL

ENVIRONMENT

ECONOMIC

The impacts from Baoviet’s business activities on the environment, society, or from the provision of financial services to partners or projects may lead to indirect effects on the community or the social environment. In order to manage these risks well, Baoviet Group always aims to practical activities to develop businesses in association with environmental protection and building prosperous communities.

In 2020, Baoviet has focused on implementing risk management towards sustainable development based on the impacts:

METHODS OF EVALUATING ASPECTS

Operating in insurance, financial investment and financial services, therefore, risks arising from environment and society have direct impact on us, especially in insurance business. Our target for insurance risk management is able to control scope and level of losses in this area; and to assure that with reasonable costs, Baoviet will make profit on our core business.

In 2019, Vietnam is affected by natural disasters such as storms; thunderstorms, flash floods; damaging cold; collapsed landslides in the Mekong River Delta, Cua Dai, Hoi An and earthquakes caused thousands of houses to collapse and

damage; tens of thousands of hectares of rice and crops were crushed; thousands of hectares of industrial trees, annual crops and fruit trees were damaged or broken; The impacts of natural disasters directly affect the business results of insurance companies. Baoviet uses a disaster risk assessment (Catastrope modeling - CAT modeling) to effectively manage occasional but devastating risks resulting from natural disasters. This model uses scientific knowledge of hazards to estimate financial losses due to events that may occur in the study area. This result allows Baoviet to determine the reinsurance to buy in accordance with the level of loss with a certain probability.

ENVIRONMENTAL AND SOCIAL FACTORS IMPACT ON BAOVIET


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SUSTAINABILITY RISK MANAGEMENT

Measuring by financial and non-financial indicators of influence.

Management by processes, procedures and regulations.

Quarterly monitoring at the Group’s Risk Management Board.

Sustainable development auditing contents.


Baoviet has focused on treatment of the impact to environment for any individual business activity and looking for the best solution to mitigate them. Defining impacts (both direct and indirect) from our business activities on environment and society helps Baoviet decrease risks arising from these sources. Consequently, it helps partially realizing sustainable development strategy and assuring long-term interest for investors, customers, employees and community.

IMPACTS FROM BAOVIET’S BUSINESS ACTIVITIES TO SUSTAINABLE DEVELOPMENT PROGESS

• Assessing the risks of invesment projects: the assessment of investment project risks help Baoviet to recognize and minimizepotential risks that may cause negative impacts to the environment and society. When implementing an investment project, we are not only interested in the economic value of the project, but also interested in the benefits and long-term impact of the project on the community and society.

• Assessing the risks of insured organization customers: Baoviet Holdings and subsidairies focus to assess the sustainability aspect when issuing insurance policies to organization clients. With manufacturing and commercial customers, Baoviet pays close attention to their business aspect to ensure safety for the environment and society. Considered aspects include the discharge of waste into the environment, the pollution of the water supply and the discharge of large amounts of carbon dioxide (CO2). Baoviet will refuse insurance for businesses that do not meet the criteria for environmental and social protection.

• Risk management in Baoviet business which impact on the environment and society, including impacts from operating and using the Baoviet’s offices. Through monitoring the environmental impacts of waste disposal and energy consumption at the units, Baoviet has taken appropriate measure to reduce operating costs and mitigate negative impacts to the environment, society and the community. We aim to reduce the negative impacts on the environment every year through internal communication projects such as energy saving, water saving, economical use and reuse of paper, limited plastic bag and use recycled materials, environmentally friendly and the energy-saving equipment or equipment using renewable energy. These projects not only raise staff awareness throughout the system but also significantly reduce the environmental and social impacts.

Baoviet does not directly participate in manufacturing activities, so risks from Baoviet’s business impact on the environment and society evaluated is very low, the indirect impacts mainly from the value chain of Baoviet. Therefore, necessary to identify appropriate sustainable development risk management measures, which include:

• Evaluating on the environmental and social risks of suppliers: Baoviet establishes criteria for assessing the quality of suppliers such as: the governance model, supplier’s impact on the environment and social… Depending on the type of service or product provided by the provider, the environmental, social and business governance factors (ESG) are assessed by different weights in order to minimize the risks may arise in the co-operation with suppliers, while limiting the indirect impact of Baoviet on the environment and society.

• Training and improving the staff’s awareness in the whole system on environmental and social impacts and ensure sustainable development risks are identified and minimized in accordance with laws and Baoviet’s internal regulations.

• Baoviet’s core products and services aim at Sustainable development. Insurance is one of the core business of Baoviet Holdings. In the current developing economic, insurance has increasingly proved its important role in economic and social life. As a financial service and one of the mechanisms to ensure social security in the national economy, through the development and implementation of insurance products, Baoviet contributed to share the losses, minimize losses; insurance is also a flexible form of saving, affecting on the thinking of individuals, households and business owners, contributing to form a sense, habit of saving part of the income to have a safer future: In life insurance, there are life insurance policies that are both protective and saving. When no risk occurs, premiums paid by customers are the same as those that accumulate periodically.


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CUSTOMER

EMPLOYEE

ENVIRONMENT AND SOCIETY

REGULATORY AUTHORITIES


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Vị trí của hệ thống kiểm soát nội bộ trong khung quản trị doanh nghiệp của Tập đoàn Bảo Việt

• Fulfill the commitment with customer.

• Diversify and improve the quality of goods and services.

• Pay salary timely and adequately.

• Treat with respect and fairness.

• Educate and promote.

• Guarantee the safe working environment.

• Make full use of resources.

• Make social donation.

• Support young generation.

• Make full use of assets and resources.

• Report sufficiently, timely, reliably and transparently.

• Deal fairly

• Comply with contract.

• Comply with the law and regulation

• Report sufficiently, timely, accurately.

THE INTERNAL CONTROL SYSTEM AND INTERNAL AUDIT ACTIVITIES

CORPORATE GOVERNANCE FRAMEWORK OF BAOVIET HOLDINGS

• Organization and Structure • Supervision and Training• Remuneration• Plan of successors

• Ethic and relationship of members of BODs • Assets – Liabilities Management Committee • Remuneration and Nomination Committee • Strategy and Investment Committee• Audit Committee

• Code of conduct• Business ethic• Working environment/Safety and Healthy • Social responsibility

• Vision and Mission • Strategy and business plan• Monitoring the effectiveness of Group’s

operation and governance• Information technology strategy• Human resource management

• Financial and non-financial reports• Continuous communications

• Risk management process • Internal control process

RISK MANAGEMENT AND COMPLIANCE

OPERATION AND EFFECTIVENESS OF BOARD OF DIRECTORS

STRUCTURE OF BOARD OF DIRECTORS

TRANSPARENCY AND COMMUNICATION

STRATEGY, PLAN AND MONITORING

RESPONSIBILITIES (SOCIAL, ETHICAL, ENVIRONMENTAL)

CORPORATE GOVERNANCE FRAMEWORK

In accordance with the Governance Regulation of Baoviet Holdings, Internal Control is a process issued by and taken effect in Baoviet Holdings, designed and maintained to provide reasonable assurance regarding the achievement of organization’s objectives.

DEFINITION

OBJECTIVES OF BAOVIET HOLDINGS’S INTERNAL CONTROL

SYSTEM ALIGNED WITH SUSTAINABLE

DEVELOPMENT


SUSTAINABLE DEVELOPMENT GOVERNANCE THE INTERNAL CONTROL SYSTEM AND INTERNAL AUDIT ACTIVITIES

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LINES OF DEFENSE

FUNCTIONS AND RESPONSIBILITIES

To provide the Audit Committee, the Board of Directors and Chief Executive Officer with independent and objective evaluations on the appropriateness, effectiveness and efficiency of Internal Control, Risk Management and Corporate Governance processes of auditees basing on assurance and consulting activities in order to help the Group accomplish its objectives, including sustainable development objectives.

STAT

E M

ANAG

EMEN

T AG

ENCI

ES

OPERATING PRINCIPLES

APPROACH

• General Affairs Office and Functional Divisions

• Information Technology Center

• Education and Training Center

• Risk Management Division

• Propaganda - Legal Division • Inspection -

Internal Audit

COOR

DINA

TION

• Functional Blocks /Divisions at Head Office

• Branches

• Risk Management, Inspection -Internal Control Division

• Legal and Compliance Division

HOLDINGS

BOARD OF MANAGEMENTRISK MANAGEMENT COUNCIL

BOARD OF DIRECTORSAUDIT COMMITTEE

THE 1ST LINE

THE 2ND LINE

THE 3RD LINE

100% CAPITAL OWNED SUBSIDIARIES

OPERATIONS COMPLIANCE ASSURANCE,CONSULTING EX

TERN

AL A

UDIT

AUDITING

INTERNAL AUDIT ACTIVITIES ALIGNMENT

(Alignment of Objectives, Risks

and Controls)

ORCA Methodology

OBJECTIVES(Key objectives of the Group)

CONTROLS(Control measures to mitigate Risk)

RISKS(Risks threatening

the accomplishment of the Group’s objectives)

Formulating and proposing to the Audit Committee and the Board of Directors to approve the selection of audit process, auditees, audit scope, audit frequency and audit schedule.

Performing audit engagements, delivering findings, conclusions and issuing internal audit reports.

Performing audit work with integrity, fairness and unbiasedness.

INDEPENDENCEOBJECTIVITY

Baoviet Holdings’ Inspection - Internal Audit adopts a risk-based approach (ORCA) to conduct its auditing activity, which means the Inspection - Internal Audit bases on the risk assessment results to determine audit objectives, auditees, audit scopes and methodologies.



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THE INTERNAL AUDIT PROCESS

STAGES OF INTERNAL AUDIT PROCESS

SATGE IV

-

Follow-up

STAGE V

-

Quality assurance

STAGE III

-

Reporting & Completion

STAGE II

-

Detailed plan preparation &

Execution

STAGE I

-

Annual audit plan preparation

Expectations of stakeholders

External quality assessment

Internal audit quality assessment

Execution

Fiing & reviewing

Detailed audit planExpectations of stakeholders

Overview of enterprise

Risk assessment

Strategy/ Annual plan

Plan approval

Reassessment of strategy plan

Summary report

Periodical report

Completion

Detailed audit report

Off-site Follow-up

On-site Follow-up

THE INSPECTION - INTERNAL AUDIT’S ROLES TOWARDS BAOVIET HOLDINGS’ SUSTAINABLE DEVELOPMENT OBJECTIVES

CONSULTING

Consulting in designing and deploying sustainable development project;

Consulting in corporate governance, risk assessment and internal control related to sustainable development.

According to its functions and responsibilities, the Inspection - Internal Audit plays three roles towards the Holdings’ sustainable development activities:

SUPPORTING

Supporting related parties in self-assessing control measures

and results of sustainable development programmes/

activities/processes.

ASSURANCE

Performing internal auditing towards sustainable development

activities.



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2020 is the fourth consecutive year the Inspection - Internal Audit has provided limited assurance for Baoviet Holdings’ Sustainability Report in line with the GRI standards. The Inspection - Internal Audit has proposed independent and objective assessment of the accuracy, completeness and consistency of the data in the Sustainability Report, thus presenting the gravity and high commitment of the Holdings’ leaders to sustainable development. The Inspection - Internal Audit applied the revision method based on Standard 3000 – Service Contracts in addition to the auditing services and reviewing of past finacial information

As its functions and responsibilities, through each audit engagement, the Inspection - Internal Audit has continued to make appropriate recommendations to improve the internal control, risk management, governance system and contribute in the prevention/mitigation of potential risks for the Holdings’ wholly owned subsidiaries and Divisons/Centers.

In addition, the consulting role of the Inspection - Internal Audit has also been enhanced through participation in the review process of existing documents, processes and regulations of the State and Baoviet Holdings.

In 2020, the Inspection - Internal Audit has continued to play its supporting role by communicating, coordinating, and sharing with entities in the first and second line of defense information on auditing, internal control, risk management and compliance.

(issued with Circular 66/2015/TT-BTC dated 8 May 2015 by the Ministry of Finance) combined using the GRI standards to provide opinions and recommendations to improve the quality of the Sustainability Report.

ASSURANCE ROLE

CONSULTING ROLE

SUPPORTING ROLE

THE INTENAL AUDIT ACTIVITIES TOWARDS BAOVIET HOLDINGS’ SUSTAINABLE DEVELOPMENT OBJECTIVES

ASSURE THE ACCURACY, COMPLETENESS AND CONSISTENCY OF

THE PROCESS TO LIMITED ASSURANCE SUSTAINABILITY REPORT

INDICATORS IN SUSTAINABILITY REPORT04

PLANNING

Kick-off with stakeholders

Confirm the scope of review and timeline

Gather and research documents

Conduct risk assessments, develop work programs

and detailed plan

Prepare the draft Sustainability Report and the Letter of Assurance

Communicate with stakeholders

Issue the Internal Audit Report and the Letter of

Assurance

Evaluate the adequacy and effectiveness of

established controls for:

• The preparation and presentation of the

Sustainability Report

• The updating of the draft Sustainability Report

Evaluate the implementation of

previous recommendations of the Inspection - Internal

Audit

Ratios of standard entry level wage by gender

compared to local minimum wage

Operations with local community engagement, impact assessments, and

development programs

Average hours of training per year per employee

Monetary value of product and services designed to deliver a specific social

benefit for each business line broken down

by purpose

GRI 202-1 GRI 404-1 GRI 413-1 GRI G4 - FS7

EXECUTION REPORTING FOLLOW-UP

The below table illustrates some of the risks that can occur during the preparation of a Sustainability Report and some of the key risk control measures:

Description of Risk Description of Control

• The information and data of the Sustainability Report’s indicators have not been collected in a full and timely manner.

• The Sustainability Report team is established with all relevant departments and staffs of the Holdings and its subsidiaries, in which key members are responsible for coordinating the whole reporting process.

The collection of information

and data

• The collected information and data have not been reviewed to assure the accuracy and consistency before presenting in the Sustainability Report.

• Key members review the collected information and data on the completeness, mechanical accuracy (horizontal plus, vertical plus, percentage), comparablity (compare the current year with the last year to identify major or unusual fluctuations), consistency (with information and data that have been reported to the outside).

The control and synthesis of information and

data

• The information and data of the Sustainability Report are incomplete, inaccurate, inconsistent, or unclear.

• Key members research, promulgate and guide other members how to present each content and each indicator of the Sustainability Report.

• Key members review the whole Sustainability Report to ensure the completeness, accuracy, consistency and clarity of the information and data.

The preparation and presentation of

the Sustainability Report


SCOPE OF REPORT

Engaging stakeholders in sustainability

The process of exchanging and engaging stakeholders with Baoviet is reported in the scale of Baoviet Holdings, including:

Stakeholders participation in Baoviet policies and activities

102-40GRI 102-44GRI

GRI

102

ENGAGING STAKEHOLDERS IN SUSTAINABILITY

We identify stakeholders based on the possible effects of Baoviet’s activities on them or those who have an interest in Baoviet’s current operations. We reach out to stakeholders through a variety of different sources of information through appropriate ways so as to listen to each other party opinions and interests for the operation of Baoviet, especially coperate governance issues, human resource development, economic growth, contribution to society and the environment.

The process of communicating with the parties also helped Baoviet proactively identify current trends and issues, as well as help Baoviet to objectively review policies, reports and disclose information. At the same time, Baoviet identified stakeholders based on the role and level of influence of stakeholders on Baoviet.

MANAGEMENT APPROACH

Stakeholders are important partners in the sustainable development of Baoviet. Feedback from stakeholders is a great source of information for us to continue to grow and consolidate our business.

Stakeholders are our significant partners whose feedbacks are valuable source of information for us to develop and reinforce our operation. For each target group, Baovet uses different approaches to information. Feedback from the parties is carefully reviewed, researched and endeavored to include these feedbacks into our Company’s policies and practices.

BAOVIET’S KEY STAKEHOLDERS

We identify stakeholders based on the possible effects of Baoviet’s activities on them or those who are interested in influencing Baoviet’s current operations. We build and develop relationships based on meeting long-term interests between parties; this relationship is based on trust, transparency,

and respect for the corporate ethical standards.

The 7 key stakeholders for Baoviet include:

LOCAL COMM

UNITY GOVERNMENT SHAREHOLDERS/ INVESTORS

C

USTO

MER

S

PAR

TNER

S/ SUPPLIERS

EMPLOYEES MEDIA

1.

2.

3.

4.5.

6.

7.


THE BASIC PRINCIPLE IN ENGAGING STAKEHOLDERS

We reach out to relevant stakeholders through a variety of channels of information in a way that is conducive to listening to each other’s ideas and interests in relation to Baoviet’s operations, especially governance issues. company, human resource development, economic growth, contribution to society and environment. The process of exchanging with the stakeholders also helps Baoviet to proactively identify current trends and issues as well as helping Baoviet to better understood their interest and expectation, objectively view policies, reports and disclosure of information to stakeholders.

Baoviet identified the stakeholders based on the role and level of influence of the parties involved in Baoviet proportionally as follows:

Employees Customers Government Partners/ Supplier

Media Shareholders/ Investors

Local community

25% 15% 15% 20% 10% 10% 5%

Influence proportion of stakeholders on Baoviet.

BAOVIET’S ENGAGEMENT WITH STAKEHOLDERS

In 2020, Baoviet continued to engage stakeholders via multidimensional channels, in which our sustainable development strategy is profoundly mentioned to understand opinions of our stakeholders towards Baoviet’s activities relating to Economic - Social - Environmental initiatives.

We also took a survey on social network and website to get feedback about our sustainable development activities in 2020. The survey was made available under the Sustainable development/ Survey of stakeholders website section.

Throughout discussions and meetings with parties we figured out concerns of stakeholders and their major impacts on Baoviet’s activities. This is the foundation for 2019 Sustainability Report.

By assessing the importance of issues, we make investments, allocate resources that best meet stakeholders’ expectations and ensure corporate sustainable development.

Employees

Annual labour conference/ Internal publications: Intranet, Monthly Bulletin, Baoviet’s research magazine; Training courses.

Partners/ Supplier

Direct meeting: to complete

tender policies and cooperation agreement

with suppliers.

Customers

Agents meeting with customers; Call center and 24/7

hotline; Customer response management channel integrated

on website.

Government

Participate in the conferences and workshops organized

by the Government and Ministries; Become a member of organizations and associations

including the Association of Vietnamese Insurers, Vietnam

Business Council for Sustainable Development, World Economic

Forum…

Media

Meet the media to exchange information, interview leaders and experts; Programs of exchange, press cooperation, press release

about Enterprise activities.

Shareholders/ Investors

Meeting with investors/Annual General Meeting, Investor Relation

(IR) newlettersBaoviet Website Exchange and cooperation

programs, Investors tour and roadshow.

Local community

Work with local authorities to approach residents and survey

their expectations.

25% 15% 15% 20% 10% 10% 5%

ENGAGING STAKEHOLDER IN SUSTAINABILITYGRI

102

GRI 102-40 GRI 102-44


EMPLOYEES

Critical issues• Dynamic professional working environment;

• Increase employee welfares and benefits;

• Benefit and promotion.

Baoviet’s initiatives• To build human resources with high professional qualifications,

working ability, and access to modern management methods and skills.

• Organizingfitness exercise initiative movement.

Shared values• Implementing retirement

insurance, cancer insurance for employee;

• 6,500 officers are trained in professional skills;

• Building gyms, yoga classes, dancing, ping pong for the staffs to practice overtime.

1

CUSTOMERS

Critical issues• Business prestige, qualityproduct, service;

• Products diversified, meet the needs of customers.

Baoviet’s initiatives• Create products and services to meet the diverse needs of customers;

protecting customers against risks, giving customers the opportunity to realize theỉr dream, ensuring the peace of mind and prosperity for customers.

• Application of AI (Artificial Intelligence) and machinelearning to build AdviserBot to serve customers;

• Conducting customer feedback surveys online and at the customer service counter.

Shared values• Launched 05 new life, non-

life insurance products, fund certificates andother integrated financial insurance products; Launch of B-Wise trading platform.

• Deploying preferential premiums for customers when participating in insurance packages, supporting customers during The Covid-19 disease outbreaks; Implement Customer Loyalty program ;

• >600 customers respond positive feedback via online channel, fanpage and directly at service counters.

3

MEDIA

Critical issues• Providing and sharing open, active and regular information so the

media can reflect truthfully and objectively on the operation of the corporation to the public.

Baoviet’s initiatives• Closely connecting and networking with the press, ensuring that the

news of Baoviet’s activities are updated in a timely and honest manner;

• Increasing the amount of information sent to the media through press releases, news, in-depth analytical articles sent to the press.

Shared values• Collaborate with VTV, VOV

in producing news articles, interviews and stories, short documentary film to provide information about Baoviet to the public;

• More than 250 articles on Baoviet’ sustainable development have been published in newspapers in Vietnam and internationally.

2


102

GRI 102-40 GRI 102-44

STAKEHOLDERS PARTICIPATION IN BAOVIET POLICIES AND ACTIVITIES

SHAREHOLDERS/INVESTORS

Critical issues• Business growth is effective, sustainable;

• Equal treatment and shareholder rights;

• Transparent information.

Baoviet’s initiatives• Implement equality policies between major shareholders and small

shareholders to provide information and create conditions for all shareholders to exercise their voting rights;

• Pay full dividend,transparentdisclosure of information.

Shared values• Received and met 120 investors;

• Participate in 05 domestic and international investment promotion conferences (Korea, UK, Singapore ...);

• Over 100 calls from individual investors are resolved;

• Dividend payment at the rate of 8% / par value.

4

Stakeholders are our significant partners whose feedbacks are valuable source of information for us to develop and reinforce our operation. Throughout discussions and meetings with parties, we summarized the concerns of stakeholders and their major impacts on Baoviet’s activities. This is also the foundation and material for us to create 2020 Sustainability Report.

Through assessing the influence of important issues, we make investments, allocate resources reasonably to meet the expectations of stakeholders as well as ensure the sustainable development of enterprise.

PUBLIC ADMINISTRATION

Critical issues• Implement the Government’s development orientations and strategies;

• Together with management agencies implement policies to support the development of the economy, the market and community population.

Baoviet’s initiatives• Set up a division dedicated to sustainable development; Assignment

of responsibility at executive level down to the subsidiaries;

• Joined the board of VBCSD to improve performance;

• Supplementation of environmental and social reviews for Baoviet Holdings’ Project Investment Process and Equity Investment Procedure.

Shared values• Strengthen the recruitment of

local workers, increase jobs and incomes for people in the areas where Baoviet is operating or in difficult areas.

5


SCOPE OF REPORT

Materiality Identification

Baoviet uses the management approach to materiality of the business is reported in the scale of Baoviet Holdings and follows the procedures as follows:

Developing management approach and evaluating the management approach’s effectiveness

103-1 GRI 102-3GRI

GRI

102

MATERIALITY IDENTIFICATION

After assessing the impact of factors in relative relations between stakeholders’ concerns and impacts on the company’s activities, Baoviet establish the Materiality identification matrix to identify the priority level and distribute our resources properly to best fulfill stakeholders’ expectaions as well as ensure corporate sustainability.

Assessment of critical areas is the principle that requires reporting but at the same time is the process of determining the key content in accordance with the development strategy of sustainable development. The process of conducting critical assessments in Baoviet is conducted in accordance with the steps of the critical sector assessment process and methodology according to the GRI Standards.

Based on the analysis of the economic, social and environmental aspects of Baoviet Group’s activities, we identify the areas of weakness that are defined under the GRI Standards. We perform a summary of interest in areas identified for each stakeholder based on the results of stakeholder engagement. After that, we synthesized critical areas on the matrix according to important assessment results with stakeholders and businesses.

Common challenges to the process of materialization include: Prioritizing topics that are important to the business, the importance of stakeholders and the social, economic and environmental impact of each topic in the value chain.

MANAGEMENT APPROACH

For materiality, Baoviet defines the management method that helps the company shape its strategy, ensuring sustainable development in the long run.

LOCAL COMMUNITY

Critical issues• Assist and support people to improve basic living conditions;

• Support local economic development.

Baoviet’s initiatives• Supporting the community through contribution by donating basic

living conditions, enabling people to concentrate on production, securing their family economy, thereby promoting the local economy, creating business development opportunities for Baoviet;

• Environmental impact assessment; reduce energy consumption and greenhouse gas emissions.

Shared values• Organized many medical

examination and treatment programs, giving gifts to highland mountainous people; giving books and clothes, scholarships for students;

• Invested more than VND400 billion for social welfare initiatives;

• Carried out quarterly environmental monitoring report at Baoviet’s Head Office.

6

PARTNERS/SUPPLIERS

Critical issues• Equal treatment of suppliers;

• Clear criteria for evaluating options.

Baoviet’s initiatives• Supplementation of 02 criteria for environmental and social evaluation

and review for Baoviet Holdings’ Project Investment Process and Equity Investment Procedure.

Shared values• Applying the supplier evaluation

criteria in 5 aspects, including environmental factors;

• Suppliers meet management requirements, comply with legal requirements and operate in a non-damaging way towards environment and society.

7


102

GRI 102-40 GRI 102-44


Key issues assessment process

Based on the evaluation of the importance of issues considered in the correlation between the level of interest of the parties and the level of influence In terms of business activities, Baoviet has developed a “Core Matrix” in order to determine priorities and allocate resources to best meet the expectations of stakeholders.

PROCESS OF DETERMINING KEY ISSUES The assessment of a key area is a principle that requires reporting but at the same time is the process of determining the focus of content in line with the developed Sustainable Development Strategy. The process of conducting material assessment at Baoviet was conducted in accordance with the steps of the process and methodology for evaluating material areas according to GRI Standards.

On the basis of analyzing the impact on the economic, social and environmental aspects of Baoviet Holdings’ activities, we identify areas of significance in reference to GRI Standards. We aggregate the level of interest according to the identified areas for each stakeholder primarily based on the results of stakeholder consultation. We then summarize the assessment of the material key area of the matrix based on the results of the assessment of importance to stakeholders and businesses.

Building the Set of Sustainable Development Issues (Reference to GRI Standards) Evaluation and internal review

Classification of the key aspects under 3 contents:

• Research and review informations from the market and industry;

• Analysis media and press information;

• Review and survey from customers, information from Industry Associations;

• Internal discussions with workers;

• Meeting with local leaders.

Identification of sustainable issues impacting on Baoviet

Significant areas of increased interest level from stakeholders

Society EnvironmentEconomic

Identification of sustainable issues impacting on Baoviet

Assessment and selection of stakeholders’ concerns

Assessing important aspects that need to be prioritized;

Reviewing prioritized aspects by top managers;

Selecting prioritized aspects of Baoviet.

Analyzing influences

• Identifying weighted ratio of stakeholders;

• Assessing impacts of aspects on stakeholders;

• Calculating weighted GPA and impact on stakeholders.

Analysis of the effects on Baoviet’s operation

• Assessing and grading the impact on sales, costs, regulations and corporate credibility.

Priorities of Baoviet

Prio

ritie

s of

sta

keho

lder

s

Economic performance

Indirect economic impact

Occupational Health and Safety

Local Communities

Customer Health & SafetyEducation and Training

Market Presence

Business Ethic and Integrity

Information Transparency

Employment

Jobs Diversity and Equal Opportunity

Products and services for social benefits

Anti-corruption Emissions and wastes

Environmental Compliance

MATERIALITY IDENTIFICATIONGRI

102

GRI 103-1 GRI 102-3

IDENTIFY KEY ISSUES Baoviet conducts consultations with experts in the field of sustainable development for areas deemed critical that Baoviet needs to consider at the present time. At the same time, we also consider employees’ opinions through a review of proposals and comments made through internal interactive channels.

The assessment of key areas of business is based on the analysis of the business strategy of the enterprise, the analysis of press information and the business environment of the industry. From there we select the key areas and issues that are of interest to the parties. The importance and scope of the issues continues to be screened, analyzed and clarified during discussion meetings with the relevant Departments / Committees and submitted to the senior leaders to identify prioritised issues for implementation in 2020.

In 2020, the Internal Audit Division of Baoviet Holdings conducted an audit to assess Baoviet’s key management process for sustainable development according to the assessment method based on the capacity-maturity model with 04 maturity levels in line with international practices. Since then, the Internal Audit Division has proposed solutions to the Board of Directors of Baoviet Holdings to improve the process of managing key issues according to international standards.


MATERIALITY MATRIX OF KEY ISSUES IN 2020

ASSESSING THE APPROPRIATENESS OF MANAGEMENT APPROACH FOR MATERIALITY

By assessing the importance of the fields considered in the correlation between the level of stakeholders’ interestand the level of affect onbusiness operations, Baoviet develops a “Materiality Matrix of key issues” to determine the priority and appropriate allocation of resources to best meet the expectations of stakeholders as well as to ensure the sustainable development ofenterprise.

After the process of understanding and assessing the level of stakeholders’ interestwith key issues, combined with the information recommended by internal audit after the assurance process with some indicators, during the year 2020, Baoviet has reviewed, analyzed and compared in accordance with the GRI Standards criteria. In addition to consulting with stakeholders, there are a number of issues that gained increase interest of stakeholders, Baoviet has focused on these as the main analysis framework in the 2020 report as follows:

The key issues have been identified and assessed in the direction of integrating the stakeholders’ interests and Baoviet’s concerns specifically into 5 areas: Economic, Social, Environment, Governance, Customers’Health and Safety, from which Baoviet can allocate resources appropriately, best meet the expectations of stakeholders as well as ensure the sustainable development of the business. The issues mentioned above are presented in the following sections of this report.

Content related to key issues is also analyzed and presented in detail in Baoviet Holdings 2020 Sustainability Report prepared according to GRI Standards.

Priorities of Baoviet

Prio

ritie

s of

sta

keho

lder

s

Economic performance

Indirect economic impact

Occupational Health and Safety

Local Communities

Customer Health & SafetyEducation and Training

Market Presence

Business Ethic and Integrity

Information Transparency

Employment

Jobs Diversity and Equal Opportunity

Products and services for social benefits

Anti-corruption Emissions and wastes

Environmental Compliance

After the consultation, we noticed that stakeholders have increased interest in the business performance and position of Baoviet in the market. Stakeholders expressed interest in Baoviet’s need to accelerate its operational efficiency and market dominance after focusing on innovating its business model.

As an enterprise operating in the field of insurance and financial services, the safety and health issues of customers are integrated right from the product research and design process to provide customers with comprehensive protection solutions.

In the context of the Covid-19 epidemic Baoviet have developed integrated and specialized products, and maintaining micro insurance products for low-income workers, Baoviet can realize its commitment to provide comprehensive financial and protection solutions for customers and community. The continuous introduction of voluntary pension products, specialized insurance products, micro insurance products including low-cost products for a large number of people is a way for Baoviet to support and improve the lives of the poor and near impoverish households in rural and urban areas.

WITH REGARD TO ECONOMIC ISSUES1.

THE HEALTH AND SAFETY OF CUSTOMERS 3.

As a listed company with large market capitalization, Baoviet attracts the attention of many stakeholders including domestic and foreign investors, media agencies, management agencies ... Therefore, the transparent disclosure of information and diversification of information channels to the public are subjects of interest to stakeholders. In 2020, Baoviet focused on improving the transparency and reliability of information disclosure (expanding the scope of auditing non-financial indicators, continuing to review quarterly financial reports) (according to regulation, the revision of the financial statements only required for interim reports) . Increased attendance and information sharing at international forums (Singapore, Korea, Japan), proactive response to information needs of stakeholders.

WITH REGARD TO GOVERNANCE, INFORMATION TRANSPARENCY ISSUES2.

PRODUCTS AND SERVICES FOR

SOCIAL BENEFITS

LOCAL COMMUNITIES

HEALTH AND SAFETY OF

CUSTOMERS

ECONOMIC PERFORMANCE

INFORMATION TRANSPARENCY

EDUCATION AND TRAINING

MATERIALITY IDENTIFICATIONGRI

102

GRI 103-1 GRI 102-3


According to statistics of climate change long-term risks, Vietnam ranks 5th globally in terms of most countries got damaged caused by climate change and natural disasters. On average, hundreds of casualties and economic losses due to climate change each year, about USD 1.9 billion, equivalent to 1.3% of GDP.

GRI

200 Baoviet enhances economic value to affirm its leading position in core

businesses such as insurance, financial service; as a result, embarking on

sustainable development model to increase value creation to society.


MARKET PRESENCE

INDIRECT ECONOMIC IMPACTS

PROCUREMENT PRACTICES AND VALUE CHAIN MANAGEMENT

ANTI-CORRUPTION

GRI

201

GRI

202

GRI

203

GRI

204

GRI

205

STANDARDSECONOMIC

144 145Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION ECONOMIC STANDARDS

ASSURE FINANCIAL GOALS

CONTRIBUTE TO THE COMMUNITY

PROTECT ENVIRONMENT

MANAGEMENT APPROACHMANAGEMENT PURPOSE

MANAGEMENT APPROACH

Baoviet enhances economic value to affirm its leading position in core businesses such as insurance, financial service; as a result, embarking on sustainable development model to increase value creation to society.

Baoviet presented a strong note in economic performance since total assets, total revenues and profit accomplished business plan set by AGM and delivered impressive growth through years; market share in core business sectors remained at high level in line with the target; distribution network was expanded and improved with competent employees and insurance consultants; as well as statutory reserves and capital adequacy ratio in subsidiaries were maintained higher than regulations.

MANAGEMENT APPROACH ASSESSMENTThanks to effectively adopting strategic-oriented management methods for the period 2015-2020 and advanced technologies to improve corporate governance, Baoviet in 2020 delivered strong growth in business performance, and as a result, made significant contribution to State budget, ensured annual dividend pay-out ratio to shareholders and improved salaries and welfare for employees within Baoviet.

In the future, Baoviet will continue to improve the salary and bonus scheme which encourages employees to devote and make long-term commitment to Baoviet, making contribution into persisting sustainable growth in economic performance.

LEVERAGE

GUARANTEED MAINTAIN MARKET SHARE IN

ENSURE

ADVANTAGES

SOLVENCYCORE AREAS

STABLE GROWTH TARGETS

SCOPE OF REPORT

Direct economic value generated and distributed Salaries and welfare for employees

GRI

201


Maintaining positive economic performance of Baoviet not only aiming to assure financial goals but also affect other factors as follow:

MATERIALITY TOPIC

With sustainable development strategy aiming at long-term benefits to customers, employees, shareholders and community, Baoviet always attempts to establish a strong business model, in which “Economic performance” is both an effective measure and a critical factor to build that model. Growth in economic performance thus is identified as material, which sets the stage for Baoviet to make commitment to related parties.


BUSINESS PERFORMANCE

BAOVIET HAS FIRMLY OVERCOMEDTHE CHALLENGES OF COVID-19,

MAINTAINED THE LEADINGPOSITION IN THE LIFE AND

NON-LIFE INSURANCE MARKET.WITH A DIGITAL ECOSYSTEM

INTERCONNECTING

INFORMATION TECHNOLOGY

RESOURCES DESIGNED FOR

INDUSTRIE 4.0.

GROWTH 8.9%

GROWTH 12.5%

6.9% TARGET

OUTPERFROMED

GROWTH 26.7%

TOTAL CONSOLIDATED

REVENUES OF BAOVIET

GROUP IN 2020

(BILLION VND)

LIFE INSURANCE

TOTAL REVENUE IN 2020

(BILLION VND)

NON-LIFE INSURANCE


(BILLION VND)

FINANCIAL & OTHER SERVICES


(BILLION VND)

48,999

36,169

11,526

1,880

ECONOMIC PERFORMANCEGRI

201

DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTEDKẾT QUẢ HOẠT ĐỘNG KINH DOANH

Since total consolidated revenues growth maintained strong through year, Baoviet Holdings continously made its substantial contribution to Vietnam’s GDP. 2020 witnessed an impressive performance of Baoviet when total consolidated revenues touched VND48,999 billion, 9.2% higher than 2019 and outperformed 8.9% than the target. This result was driven by sustainable development strategy developed years ago, with a digital ecosystem interconnecting information technology resources designed for Industrie 4.0.

BRANDCORE BUSINESSES ARE REINFORCED

AS VIETNAMESE NUMBER

2016-2020 consolidated revenuesUnit: VND billion Actual Plan

Life insurance business marked an impressive expansion with total revenues of VND36,169 billion, dramatically grew 12.5% than 2019, outperformed 7.6% than the target and solidifed its leading position in the market. In 2020, Baoviet has faced big difficulties and challenges caused by Covid-19 pandemic and natural disasteurs in Central provinces. Baoviet Life Insurance Corporation (BVL) yet still delivered strong growth since it promptly applied advanced technology into business development strategy and expanded networks. Premiums maintained its growth momentum and achieved VND28,046billion, 10.2% higher than 2019; of which, premiums from existing policies grew up by 11.9%.

This outstanding performance came on the back of the fact that Baoviet Life (BVL) adopted key business solutions, identified the main driver of business growth and sustainable developement being network expansion, consultant quality improvement, product innovation and technology adoption in business operations, customer service and corporate governance. By 31/12/2020, with nearly 2,300 employees coupled with a network of 76 branches and 362 offices spreading in 63 provinces of the whole country, BVL has gained access and provided diversified services to many customers. Maintaining and developing the traditional agency channel as the main channel in the direction of professionalization and rejuvenation of human resources, BVL remained its goal of expanding network of consultants through recruiting new consultants, focusing on quality and efectiveness of training programs to respond to changes in business environment, towards sustainable development. Total number of consultants

in BVL reached nearly 170,000 people as a result. In addition to traditional channel, BVL continuously promoted sales through multi-channel retailing, such as bancassurance, telesales, digital sales in order to diversify customer base as well as improve consulting sales to customers.

As a national brand, BVL has always made an enormous effort to carry out mission “Protecting Vietnamese Families – Protecting Vietnamese Health – Protecting Vietnamese Future”, to fulfill social responsibilities and to contribute into building a health, safe and prosperous community. Additionally, BVL has continously been awarded as the first ranked insurer regarding corporate tax payment to the State budget as well as implemeting development strategy of the Government in establishing social welfare system through life insurance development.

Non-life insurance business maintained its growth momentum as well as its market leading position for years. Total revenues reached VND11.526 billion, 6.9% higher than the target and accounting for 23% of total Group’s revenues; of which gross written premium touched VND9,692 billion, 4.2% surpassed the plan. Claim ratio was 54.7%, considerably decreased compared to 2019 (by 8.7%) and lower than the plan (by 5.1%), thereby Baoviet aimed to improve business efficiency in non-life insurance sector. With a dominance of extensive network with 79 branches alongside the country, coupled with over 3,000 employees, above 85,000 insurance agents and nearly 700 local insurance office, Baoviet affirmed the largest insurance network for customers until now.

Baoviet thus achieved a strong performance in all core businesses, specically:

10,000

20,000

30,000

40,000

50,000

2017

32,7

50

2018

41,8

54

2019

44,8

78

2020

48,9

99

44,9

60

2016

25,6

75

9.2%



201

Not only is Baviet General Insurance Corporation (BVGI) the first preference for individual and family customers but it also leading insurer providing comprehensive insurance package, risk management program for organizations and corporates to alleviate risks and losses for customers. Baoviet made dramatical changes towards diversified digital ecosystem to bring customers a new experience journey with a more customer-centric insurance procedure which gained complete satisfaction of customers.

Couple with business impovement, BVGI always pioneered in creating a professional and friendly working environment providing development opportunities and promoting as well as good welfare for over 3,000 employees. With the aim of always listening to understand, BVGI has established a new standard of ideal workplace where all employees are committed to be comprehensively cared and completely developed and fully rewarded. With all those great efforts, BVGI has received many domestical and international pretigious awards, including Asia’s most trusted Non-life insurance Brand 2020 and non-life insurance enterprise achieved the best customer service quality in Asia 2020 (Best Brand Magazine); Best digital transformation non-life insurance enterprise in Vietnam 2020, Non-life insurance enterprise brings satisfaction and happiness to customers in 2020 (Global Banking and Finance Review).

Financial services and others signaled a positive note when contributed total revenues of VND1,880 billion and 26.7% higher than previous year, which accounted for 3% of the total Group’s revenues. Sales from all sectors such as securities, fund management, office rental, construction and real estate management indicated positive results. During 2020, investment activities were adversely impacted by the reduction in bond and deposit’s interest rates. Yet, Baoviet’s investment activities still delivered positive results: total revenues from securities achieved a growth of 5.4% compared to previous year, reaching VND594 billion. Fund management business witnessed a steady growth with total revenues of VND114 billion. Revenues from office rental, construction and real estate management businesses recorded a growth of 18.4%, achieved VND311 billion, attributing to the Group’s remarkable performance of the whole Group.

On the basis of strong and advanced technology platform, Baoviet aimed to adopt technology into business operations, especially in insurance business, to improve operational efficiency and set the stage for acceleration in following years. Baoviet attempted to optimize investment opportunities to improve business performance as well as to build strong corporate governance, modern infrastructure, strong brand identity and product and service quality improvement. Baoviet as a result overcame difficulties caused by Covid-19 pandemic, accomplished the target of maintaining market position in both life insurance and non-life insurance business, successfully outperformed the business plan, as well as ensure customers’ interests through attractive profit sharing, prompt benefit payment and prudent provision of technical reserves.

Baoviet during 2020 delivered strong growth amid the Covid-19 pandemic and remarkably achieved all targets set, sucessfully packing the 2016-2020 business strategy. Consolidated profit after tax in 2020 recorded at VND1,650 billion, increased by 32.8% compared to 2019 and 39.8% outperformed the target. In the context of much difficulties and challenges from both external environment (lower profit of investment activities as a result of interest rate reductions and turbulences in stock market) and internal factors (high network

maintenance and expansion costs, huge investment costs in technology system), Baoviet yet proactively and promptly seized opportunities in insurance market and reaped benefits when stock market were buoyed in the second half of 2020 as well as made the most of technology platform in corporate management and business to successfully maintain its leading position in both life and non - life insurance markets. Profits from insurance business remained the largest contributor into the Group’s profit (59%).

BAOVIET DELIVERED STRONG GROWTH IN CONSOLIDATED PROFIT - OUTPERFORMED 2016-2020 STRATEGY TARGETS

Consolidated profit after tax in 2020 (VND billion, )

increased by 32.8% compared to 2019 and 398% outperformed the target

1,650

Revenues by core businesses Life insurance Non-life insurance Financial & other services

2019 2020

3%

71%

26%

4%

73%

23%



201

As a leading financial-insurance group in Vietnam, Baoviet Holdings provided a wide range of services from insurance to financial service, banking, securities and real estate services; of which investment in subsidiaries and associates is core business. Besides, there are financial services business activities and other fields as prescribed by laws; information technology services; real estate services; educational support services and other business professions. Due to the characteristics of the pillar business (insurance, including general insurance and life insurance), insurance -related -expenses such as claim and maturity payment expenses, technical reserves... account for the largest share in the total expenses.

The second contributor into total expenses is general and administration expenses, of which labour cost and related expenses account for around 55%. As a service group, at Bao Viet, human resources play an important and decisive role. During 2020, the Covid-19 pandemic caused enormous damages to the economy, resulted in the fact that many corporates had to cut labour and maintain their status of existence. Baoviet yet made concerted efforts in business and governance to maintain income for employees in the Group. With positive business results in 2020, Baoviet ensured stable jobs as well as income and welfare benefits for employees, especially during the period of “social distancing”. Additionally, the attractive welfare system continued to be maintained, making significant contribution into creating movivation and confidence for employees to join hands with Baoviet to overcome difficulties and challenges caused by the pandemic and to achieve all set out targets. Noticeably, the ratio of salaries and related expenses over general and administration expenses in 2020 remained at high level (54.6%), which indicated Baoviet’s dertermination in shaping an attractive welfare system, facilitates to contribute to its and the whole economy’s substainable development.

Promoting the strength of a leading Finance-Insurance Group in Vietnam, in key business fields, Baoviet is always in the group of market leaders in terms of business performance as well as profitability with ROCC (Profit after tax/Chartered Capital) ratio of 22.2%; ROE (Profit after tax/Equity) of 7.9% in 2020; significantly increased compared to 2019 thanks to the robust growth of profit after tax.

Since the financial and insurance market in 2020 experienced many turbulences caused by the Covid-19 pandemic, in order to improve business efficiency and strengthen a strong foundation for sustainable development goal in the future, Baoviet proactively stimulated investments in technology development,

In 2020, despite many difficulties in the economy with many challenges, especially in periods of “social distancing”, with the strategy of investment and development in advanced information technology (IT) platform, the promotion of technology application in business activities, especially in the insurance business to optimize current resources on the back of technology, the proportion of expenses for external services over adminstrative costs was at 20%.. Depreciation expense for fixed assets increased slightly from 4.2% (in 2019) to 4.7% (in 2020) since some IT assets were operated.

adopted and reaped the maximum benefits of Indutrie 4.0, especially in the context of social distancing. Parallel with the investment in technology development, in 2020, Baoviet Holdings also constantly created motivations for employees through attractive salary and welfare scheme, serving as a basis for increasing labour productivity; at ther same time enhancing efficiency of cost management and sales enhancement; the business performanace therby is improved.

In addition to developing business activities, Baoviet is constantly striving to improve cohesion within the Group. The sucessful issuance of preference shares under the Employee Stock Ownership Plan (ESOP) to benefit

employees contributing into the Group has demonstrated Baoviet’s gratitude to the employees’ great contributions to the Group’s overall success, and at the same time aiming for stronger cohesion in the future, in order to build a strong Baoviet both in terms of economy and value associated with employees in oarticualr and the society in general.

With the new level of chartered capital (VND 7,423 billion) after the private placement for the strategic partner since end of 2019 and potential of investment projects on the back of advanced technology platform, Baoviet is expected to deliver strong and stable growth in the following years, providing opportunity for wealth creation for the soceity as a result.

OPERATING EXPENSES

BAOVIET ATTEMPTED TO INVEST AND ACQUIRE TECHNOLOGY TOWARDS SUSTAINABLE DEVELOPMENT

The operating cost’s structure of Baoviet remains relatively stable Staff cost Materials and office supplies Depreciation Taxes and fees expenses Expenses for external services Other expenses

2019 2020

12%

7%

4%1% 59

%

17%

12%

6%

5%1% 59

%

17%

Profit after tax/ Chartered capital (ROCC)

(%)

Profit after tax/ Equity (ROE)

(%)

Charter capital after private placement

(Billion VND)

22,2 7.9 7,423



201

Total payments Bao Viet made to the State Budget (including taxes and annual dividend paid) in 2020 was more than VND1,600 billion, which is one the top 3 years with the highest tax payment in the last five years. Of which, taxes are VND 1,220 billion – being the highest level within half decade - mainly from Value Added Tax (VAT), corporate and personal income taxes. High growth of revenues, promoted investments activities in projects and network expansion and improved employees’ income are the main drivers for high payments of VAT, corporate income tax and personal income tax.

All these contributions comprise actual taxes and annual dividends paid to the State budget

CONTRIBUTION TO THE STATE BUDGET

WAGES AND BENEFITS ALIGNING EMPLOYEES

2016 2017 2018 2019 2020

1,456

1,707

1,663

1,560

1,604

In order to increase shareholders’ value and demonstrate long-term commitment on economic benefits, Baoviet has always made high dividend pay-out ratio. Total dividends paid to shareholders since equitization (2007) is nearly VND8,800 billion, with dividend payout ratio ranging from 8-15%. For 2020 alone, regardless of big difficulties and challenges in the economy, Baoviet made the dividend payment of nearly VND600 billion (calculated on the chartered capital of VND7,423 billion), indicating enormous efforts in maintaining firm commitment to

shareholders and following Bao Viet’s strategy on maintaining the minimum dividend payment of 50% of annual profit after tax.

At the same time, with the purpose of re – investment to improve financial capacity, toward sustainable and long term development as well as to bring stable business performance and increase long term value for shareholders, a part of l annual profit after tax was appropriated for Investment and Development fund (30% of profit after tax in 2020). This

Attractive salary, bonus scheme and a competitive welfare system, constantly being improved and enhanced to ensure material aspects are Baoviet’s recognition to its employees decisive efforts and their commitment. In 2018, the successful issuance of shares under Employee stock ownership plan (ESOP) with total value of over VND730 billion expressed high appreciation for the long-term contribution of employees.

During 2020, the Covid-19 pandemic caused enormous damages to the economy, which resulted in the fact that many corporates had to cut labour and maintain their status of existence. Baoviet yet made concerted efforts in business and governance to maintain welfare scheme for employees in the Group, especially during the period of “social distancing”. Annual income structure of employees remained stable, including monthly salary, performance-based bonuses and other benefits. Coupled with those, employees are also fully covered insurance policies, which comprises both mandatory obligations such as social insurance, medical insurance, unemployment insurance and voluntary insurance packages such

annual setting up of Investment nad Development fund has reinforced Baoviet’s financial capability which ensured concrete business growth and demonstrate Bao Viet’s commitment to a prudent operational goal and sustainable development.

as annual health care, comprehensive health insurance and cancer insurance (K – care), Life insurance (Combined insurance), other life insurance such as An Nghiep thanh cong, An Phat tron doi and Pension insurance... Additionally, for family members, Bao Viet also has reasonable remuneration policies for employees through supporting preferential insurance packages. Supporting promoted insurance packages suitable for both employees and thier family members has strengthened close bond between Baoviet and employees. In such a year full of turbulence, these attempts has helped to encourage employees to keep their minds on Baoviet, devote and make long-term commitment to Baoviet.

Despite significant damages caused by the Covid-19 pandemic, during 2020, Baoviet delivered strong growth and remarkably achieved all targets set with total consolidated revenues outperformed the plan by nearly 9% and profit after tax was much higher than 2019, as well as reinforced its leading position in both non-life insurance and life insurance market., therefore stablely maintained the average income of employees. In a joint effort to deliver robust growth in business and to create attractive salary and welfare scheme, Baoviet is always in the top of the best workplaces in Vietnam (BVL was honored ‘Asia’s Best Workplace’ for three consecutive years, BVGI was awarded as the best workplace in non-life insurance sector for years...). Total employees related expenses in 2020 (including salary, taxes and other related benefits) remained stablely at 55% of the total general and administration expenses. In such a situation of many difficulties, this has demonstrated Baoviet’s ongoing efforts in raising the income and improving the living standards of its employees, and its commitments to establish an attractive working environment as well as competitive salary and bonus scheme, which help to reinforce the life quality of Baoviet employees in particular and the general labor force of Vietnam.

DIVIDENDS PAID TO SHAREHOLDERS

Dividends paid to shareholders in 2007-2020 (Billion VND)

Dividend pay-out ratio (%)

Re-investment ratio / Profit after tax

8,800 8-15% 30%

BaoViet always appreciates the contributions and dedication of its staffs to the Group’s overall success, since Baoviet well understand that a team of people with determination and consensus for the goal is the key factor for its growth and long – term success.

Employee stock ownership plan (ESOP) issuance

(Billion VND)

730Total employee rated expenses in 2020

Total expenses55%

Employees’ fully covered insurance policies

insurances10


MANAGEMENT PURPOSE MANAGEMENT APPROACH

Salary allocation is important to eliminate inequality, such as the gap between the wage gap between women and men, or between citizens and immigrants.

In addition, the starting salary compared to the region’s minimum wage shows the organization’s wage competitiveness and provides relevant information to assess the impact of wages on the local labor market. Comparing this information by gender can also be a measure of the organization’s perspective and approach to equal opportunity in the workplace.

Determining the maintenance of competitive pay policies is an important factor to attract talents and maintain the cohesion of employees. Baoviet also recruited senior officials from the local community, contributing to creating jobs for the locality where Baoviet is doing business.

In order to maintain the salary payment policy towards internal fairness for employees and increase the competitiveness of total income in the market, Baoviet takes into consideration and raises wages for employees annually based on business results and working efficiency of individual employees to motivate work, increase the level of engagement with businesses and promote labor productivity of workers. When the Government has adjusted the regional minimum wage, Baoviet applies new wages and adjusts income for workers

SCALE OF STARTING SALARY FOR 2020 RECRUITED EMPLOYEES ARE ASSURED BY BAOVIET INTERNAL AUDIT BLOCK

In 2020, the monthly salary for newly recruited employees is assured in compliance with the law on regional minimum wage. Key areas in the reporting period are divided into areas: Hanoi, Nghe An and Ho Chi Minh city.

With the viewpoint of human resources being the most valuable asset of the enterprise, Baoviet applies and maintains a salary policy aimed at internal fairness for employees and increases the competitiveness of total income.

Paying higher wages also contributes to workers’ economic well-being. Reasonable salary brings immediate impact, and directly affects the individual of the organization in particular and the level of national spending and the development of the economy in general.

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MARKET PRESENCE

MATERIALITY TOPIC

SCOPE OF REPORT

Scale of starting salary by genders Scale of starting salary by region minimum salary

MANAGEMENT APPROACH ASSESSMENT

MANAGEMENT APPROACH

In 2020, with the policies and actions to adjust income for employees in BaoViet, the lowest monthly salary agreement for newly recruited employees regardless gender was between 20% and 50% higher than the regional minimum wage of both areas: Hanoi, Ho Chi Minh and Nghe An.


MARKET PRESENCEGRI

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SCALE OF STARTING SALARY BY GENDER AND REGION MINIMUM SALARY

Baoviet always applies and maintains a salary policy to ensure the balance and rationality of the salary of individuals in the same position, in accordance with the education level, time and level of contribution to the business. Career in assigned positions and experiences are summarized through many years of work.

At the same time, the policies of Baoviet always focus on increasing the competitiveness of total income in the market. The starting salary paid for new workers is recruited regardless of the Male and Female in key areas: Hanoi, Nghe An, Ho Chi Minh City and across the country in general are always higher than the regional minimum wage due to state regulation.

On a yearly basis, depending on the company’s business results and each individual’s work performance, Baoviet conducts the salary review to motivate employees, increase their loyalty and productivity. Whenever there is an adjustment to the Government’s region-based minimum wages, Baoviet accordingly follows and alters employees’ salary.

In 2020, in Baoviet, the lowest starting salary for newly recruited employees regardless of Male or Female is VND 6,319,600 (51% higher than the region minimum wage of Hanoi and Ho Chi Minh City, and 116% region minimum wage of Nghe An). The average starting salary for new employees in 2020 is VND 8,615,492, accounted to 229% of region minimum wage, increased 29% compared to the average starting salary for new employees recruited in 2019.

Starting salary of newly recruited male employees compare to region minimum wage (2020)

Starting salary of newly recruited male employees compare to region minimum wage (2020)

2,000,000 2,000,000

4,000,000 4,000,000

6,000,000 6,000,000

8,000,000 8,000,000

12,000,000 12,000,000

10,000,000 10,000,000

Region minimum Minimum Average Region minimum Minimum Average

Hanoi HanoiHochiminh HochiminhNghe An Nghe AnBaoviet Baoviet

Key areas Hanoi Nghe An Hochiminh Baoviet (including both 3 areas)(*)

Region minimum wage 4,180,000 2,920,000 4,180,000 3,760,000

Starting salary Minimum Average Minimum Average Minimum Average Minimum Average

Male 4,729,400 10,361,167 8,000,000 8,500,000 4,729,400 7,428,726 5,819,600 8,763,298

Female 4,729,400 9,119,426 11,000,000 11,000,000 4,729,400 5,283,633 6,819,600 8,467,687

Average salary 4,729,400 9,740,296 9,500,000 9,750,000 4,729,400 6,356,180 6,319,600 8,615,492

Scale (%) of male employees’ salary compare to region minimum wages 113% 248% 274% 291% 113% 178% 155% 233%

Scale (%) of female employees’ salary compare to region minimum wages 113% 218% 377% 377% 113% 126% 181% 225%

Scale (%) of employees’ salary (male & female) compare to region minimum wages 113% 233% 325% 334% 113% 152% 168% 229%

(*) Baoviet’s regional minimum wage is based on the average regional minimum wage in 03 key areas


MANAGEMENT APPROACH

MANAGEMENT APPROACH ASSESSMENT

KEEPING THE PIONEERING AND LEADING ROLE IN REDUCING THE IMPACT OF NATURAL DISASTER


Determining the position of an influential Financial Insurance Group in the market, Baoviet always strives to carry out activities that bring positive indirect economic effects, showing the social responsibilities actively, contribute to building an increasingly sustainable community.

In 2020, despite the challenges of Covid pandemic worldwide and in Vietnam, Baoviet still maintains significant contributions to the local community and the economy, playing an important role with other businesses to share and solve social problems. In the long term, Baoviet will continue to enhance social activities, researching to launch new insurance products to bring customers a wider range of protection, expanding business to create more jobs for locals and promote the country’s economic development.

In 2020, natural disasters and epidemics take place irregularly, abnormally, and fiercely. Right from the beginning of the year, an acute respiratory infection caused by the SARS-COV2 virus (Covid-19) appeared, causing a heavy negative impact on the entire economy, especially affecting the lives of workers, freelance with unstable income.

Regarding natural disasters, especially from mid-September to mid-November 2020, storms, floods and landslides occurred consecutively in the central region with very strong intensity and on a large scale, causing huge damage to people and properties , severely affecting the lives and working conditions of millions of people in the area. Estimated damage was more than 35,181 billion VND.

With the role of a leading financial and insurance enterprise in the market, Baoviet has always maintained a positive influence in the socio-economic life of the country. Above all, it must be mentioned the role of supporting to compensate for financial losses and overcome damage caused by natural disasters, so that Baoviet helps to minimize unwanted impacts on the economy and community. With the largest insurance market share in Vietnam, Baoviet has always maintained its leading role in disaster insurance compensation over the country,

pioneering in compensating thousands of billions of dong, helping local residents overcome the consequences, soon stabilize the lives of people in the affected areas, and at the same time helping prevent the risks of diseases that may occur after natural disasters.

2020 is an unforgetable year that the Covid pandemic took place very complicatedly on a global scale. Right from the beginning of the year, the situation of the Covid epidemic became the focus of the whole world in general and Vietnam in particular when the number of people infected with the virus increased rapidly. In this sitiuation, with the goal and mission of taking care of and protecting the community’s health, Baoviet Insurance has officially launched the program “TAI CHINH TANG NGAY- CHUNG TAY VUOT DICH” , free to 1 million applicants aiming to join hands with society to prevent and repel the pandemic.

After only 2 weeks launching, the program has been registered by 1 million citizens with a series of positive feedback, support & received countless thanks from the community. Just being a Vietnamese citizen, each individual after registering you will receive 01 Protection Program worth VND 20 million if unfortunately infected with SARS-COVID 2 virus.

Every year, Baoviet make great efford on timely paying compensations for natural disasters losses, maintaining and expanding community activities, enhancing training and developing human resources, creating jobs and increasing income for local residents. Baoviet also takes environmental, social and governance (ESG) elements in the review and assessment of suppliers for the company, and adopting responsible investment principles.

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INDIRECT ECONOMIC IMPACTS

MATERIALITY TOPIC

SCOPE OF REPORT

Keeping the pioneering and leading role in reducing the impact of natural disaster

Reinvesting back to the economy, contributing to social construction and development

The indirect positive impacts on the economy and society created by Baoviet include:

Creating hundred of thousands of stable job opportunities, promoting the local economy

Enhancing the services quality of related industries, increasing international integration capacity

Maintaining position as the leading Insurance- Finance Group in Vietnam, Baoviet affirms the role of a pioneer in proclaiming and realising our sustainable development strategy through indirect impacts that help promote the general development of the economy and improve the quality of social living standard. With the responsibility to contribute to building common prosperity for the community, Baoviet constantly upholds the goal of contributing benefits to people and the ecosystem in Vietnam generally.


CREATING HUNDRED OF THOUSANDS OF STABLE JOB OPPORTUNITIES, PROMOTING THE LOCAL ECONOMY

people, but also contributes to improving the quality of local labor in general. Only in 2020, Baoviet Holdings has recruited 513 more employees. New staffs are mainly at Baoviet Insurance Corporation and Baoviet Life Corporation, with the number of female employees accounting for 39%.

Along with a large number of human resource, Baoviet focuses on developing the quality of employees through improving the working environment, providing training programs to accrue staffs’ knowledge and skills. Baoviet provides labors access to advanced and modern technology applications in a professional working environment. For example, Baoviet Life and Baoviet Insurance provides applications that help agents quickly and conveniently issue insurance policies and certificates, minimizing costs for intermediaries and customers.

In the technology era, during 2020, Baoviet effectively continues to maintain the use of Facebook Workplace and Workchat throughout

In 2020, in the context of the Covid epidemic causing many negative impacts, Baoviet effectively applied and promoted the available 4.0 technology applications that were previously equipped, especially during the period of “social distance” in order to maintain and improve the quality of business operations, keep stable income for all employees throughout the system.

Baoviet Group affirms the outstanding advantage in our extensive business network. With over 200 branches and more than 1,000 transaction points, we have connected 6,519 officers and more than 262,000 enthusiastic agents, consultants and brokers. Through policies on recruiting, training, developing human resource and remuneration regimes that are improved every year, Baoviet not only attracts many workers, creates jobs, increases incomes for

the system, helping to connect staff and shorten work processing time. BaoViet-Office has been popularized throughout the Group with a quick and timely process of submission & approval to help information flow from the Leader to the employees without geographical and time barriers. The project “E-Documents” at Baoviet Holdings has been urgently studies with the goal of bringing about breakthrough efficiency in document storage and management. Baoviet is constantly updating information technology applications (BVFR, Power BI) in the operations of the whole system to provide optimal working tools and utilities for employees as well as support managements to make timely and effective business decisions. The revolution in application of advanced technology in connecting, exchanging and handling work daily at Baoviet helps to improve working efficiency, save costs, contribute to upgrade human resources’ skill in technology to create the foundation for pioneering developments and breakthrough in the Finance & Insurance industry in Vietnam.

According to the draft Strategic Plan for the 2021-2025 period, Baoviet identifies digital human resource training as one of the four basic solutions to help Baoviet successfully deploy and implement our digital transformation strategy. In the year 2020, the training and development of human resources at Baoviet has been quickly built a foundation of improving skills in applying digital technology at work.

The programs with digital transformation content are widely organized for Baoviet staff in 2020 including: Instructions for using and deploying Power BI (Business Intelligence), Online teaching skills, Instruction for using BVOffice software. The Group continues to strongly apply digital technology in training activities and training management. In the context of 2020 with unusual socio-economic changes, as well as the impact of the Covid-19 epidemic, classroom training activities are significantly limited. However, Baoviet has promptly promoted activities using digital technology in training, including: Digitizing training content, applying technology to the

training management platform, equipping tools for online training. Specifically, in 2020, Baoviet conducted training for 6,506 officers with 11,447 training sessions. The total number of training hours is 183,649 hours, of which the number of training hours according to the Common Learning Map is 75,125 hours, the number of training hours outside the Common Learning Map is 108,524 hours. The average number of training hours per staff in the year is 28.2 hours, of which the average training hours for male staff is 34.5 hours, for female staff is 21.3 hours. The average number of training hours by title: the number of training hours for senior managers is 35.5 hours, for middle-level officials is 82.1 hours, and for employees is 23.2 hours. With such policies and practice of implementing human resource training applied to the whole system, Baoviet is building a high-quality labor force, creating a premise for improving the qualifications of the workforce across the country generally.

During business operation, Baoviet presents in almost provinces of Vietnam also used local suppliers to provide equipment, machinery, stationery,ect for the operation of branches and units, which promotes merchandise flows and contribute to local economic development.

O PHÚ QU C

Q Đ O HOÀNG SA

Q Đ O T NG SA

TP. HCM

Baoviet GroupAFFIRMS

THE OUTSTANDINGADVANTAGE

IN OUR EXTENSIVEBUSINESS NETWORK

Baoviet continuesto maintain its leading rolein the Vietnamese Finance -

Insurance market

BRANCHES

TRANSACTION OFFICES

EMPLOYEES

AGENTS

RECRUITED EMPLOYEES

200

1,000 6,519262,000

513

INDIRECT ECONOMIC IMPACTSGRI

203

Continuing the wind of innovation in digital technology, Baoviet with the slogan “New Normal - New Mood” has strongly invested in developing an advanced and modern information technology platform, enhancing technology application in business activities, and at the same time continued to develop and expand the network throughout the country.

Trained employees6,506

Training session11,447

Training hours183,649

Training hours/employee28.2


Re-investment in Government bonds (Billion VND)

Re-investment back to the economy (Billion VND)

Contribution to social security projects (Billion VND)

28,156 124,422 400

According to the insurance market report in 2020 of the Insurance Supervisory Authority of Vietnam, Baoviet is still the leader in terms of total premium revenue with an estimated contribution of over 20% of the total revenue of the insurance industry (total revenue of the insurance industry is estimated at 182,654 billion VND). At the same time, as an enterprise with a view to sustainable development, Baoviet has also re-invested into the economy with a total value of more than 124,422 billion VND, accounting for about 27% of the total amount invested back into the economy (which is estimated at VND 457,982 billion), of which re-investment in Government bonds (*) is about VND 28,156 billion, accounting for 79% of the Group’s total bond portfolio.

Owning Baoviet’s insurance products, especially healthcare insurance packages, customers have a wide range of choice for modern medical services with high standards. Hospitals and clinics accordingly also strive to invest in facilities as well as improve professional skills, meeting the in12345creasing needs of customers with financial support from Baoviet’s insurance packages. The development of property and vehicle insurance promotes the development of related services such as damage assessment and vehicle repair in a more professional and modern direction.

At the same time, the diverse business lines from insurance to finance, banking, securities, and real estate have created favorable conditions for Baoviet to contribute to attracting domestic and foreign investors, such as a major investment in Baoviet by Sumitomo Life a world leading corporations from Japan, helping to promote and develop related economic activities and international integration. The continuous development of diversified insurance products that are flexible to the market situation and customer needs from affordable to high-end such as fire insurance, accident insurance, agricultural insurance, marine insurance, tropical storm insurance as well as a series of high-end health products, golf insurance,

(*) Government bonds are bonds issued by the Government in order to offset budget deficits, finance central and local public welfare projects or as a monetary regulating tool.

Life-care insurance, ect, have created a dynamic, attractive and potential insurance business environment, creating conditions to attract more investors worldwide.

Baoviet also promotes the development of online sales channels through baovietonline.com.vn; strongly cooperate with information technology partners, including MoMo Wallet that helps customers actively choose and directly buy insurance products with just one touch on smart mobile devices. With the orientation to enhance technology development in the future, Baoviet is making an important contribution to improving the competitiveness of the finance and insurance industry in particular and the economy in general.

In the process of liberalizing trade and financial services, insurance plays a supporting role in bilateral and multilateral negotiations, implementing integration commitments under the roadmap such as the Vietnam-China Trade Agreement. period, joining the World Trade Organization (WTO), the Vietnam - EU Free Trade Agreement (EVFTA)... With continuous efforts to develop business activities, Baoviet has made an important contribution in promoting the process of economic integration, affirming Vietnam’s position in the region and in the international arena.

Accompanying with reinvestment activities in the economy, up to now, Baoviet Group has always been at the forefront of charity work, investing in social security projects and activities with a total amount of up to nearly 400 billion VND. Prominent activities such as constructing schools and healthcare stations in ethnic minority areas to contribute to poverty alleviation and improvement of the living standards of dis-advantaged people. In addition, Baoviet also focuses on gratitude activities, participating in embellishing historical monuments, building houses of gratitude, awarding scholarships to poor students, voluntary blood donation, raising public awareness in maintaining good health, ect.

Baoviet’s investment back into the economy contributes significantly to meeting the country’s capital needs in the development period, especially with the large capital investment in government bonds for a long time. Baoviet also makes contribution to the community by indirectly sponsoring public welfare works from the central to local levels, building infrastructure and improving living conditions for people.

As a pioneering insurance enterprise, Baoviet provides comprehensive life and non-life insurance packages to customers following the principle of “Protecting Vietnamese families - Protecting Vietnamese values” with good benefits and reasonable premiums to customers.

REINVESTING BACK TO THE ECONOMY, CONTRIBUTING TO SOCIAL CONSTRUCTION AND DEVELOPMENT

ENHANCING THE SERVICES QUALITY OF RELATED INDUSTRIES, INCREASING INTERNATIONAL INTEGRATION CAPACITY

INDIRECT ECONOMIC IMPACTSGRI

203


At Baoviet, the assessment of the environmental, social and governance risks in the supply chain is not only important for Baoviet but also for our investors and customers. Hence, the adherent of sustainable elements into investments and supplier selection helps Baoviet step by step getting closer to the sustainable supply chain, which brings benefit to both Baoviet and related parties in the supply chain.

Procurement practices also reflect the levels of Baoviet’s investment practices (such as conditions for selecting suppliers based on quality, reputation, availability, social responsibility, and environment, etc.) that impacted on the efficiency of the enterprise supply chain and the ability to supply to the community.

SCOPE OF REPORT

Engaging sustainability in the supply chain and improve the supplier selection process

Green capital market

Investment performancce

2021 Investment orientation

MANAGEMENT APPROACH MANAGEMENT PURPOSE

MANAGEMENT APPROACH

Integrating sustainability issues in procurement, investment and service use decisions helps Baoviet stick to a more sustainable goals, especially for environmental issues.

Right from the supplier selection, Baoviet has selected suppliers who fully comply with legal requirements, have a sense of responsibility for environmental protection, and have business ethics. In the past, the Management issue was centrally considering in investment projects, but nowadays, according to Baoviet’s newly issued practices, the issue of labor use, community contribution, and raising awareness of the environment will also become the criteria for evaluating and adding points to the investment project.

As a listed company with the participation of many investors, we understand that sustainable development will create a competitive advantage in capital attraction. Therefore, Baoviet - as an investor, wants to integrate sustainability factors in the process of considering potential projects.

MANAGEMENT APPROACH ASSESSMENTIn 2020, according to the corporate governance policies, none project among projects that Baoviet has invested in did fail to achieve the announced or committed schedule. Baoviet investment activities has complied with the principle of safety and efficiency, thereby increase the benefits of shareholders and customers, on the hand, support the living standards of employees.

Focusing to the strategic direction for the period 2016 - 2020, in 2020, Baoviet Holdings issued investment policies and risk management, continue to improve and complete the processes, regulations relating to investment activities to ensure timely action as partners appear to show credit deterioration. As a result, the Group’s investment activities are ensured safety, making an important contribution to the overall business results of the Group and subsidiaries.

MATERIALITY TOPIC

GRI

204



As an enterprise providing insurance products and financial services to millions of Vietnamese people, Baoviet determines that a business can only implement a sustainable development strategy when combining financial growth goals, economic profits with social development and environmental protection. On the basis of identifying key issues and concerns of stakeholders, Baoviet has built a business model to maximize the effectiveness of internal factors (human resources, capital, intellectual property, brand reputation...) and external factors such as sustainable development trends, demographics, social responsibility to create output values including products and services, economic values (revenue, profit, dividends) to bring added value to stakeholders.

KEY GROWTH DRIVERS

These contents are generalized according to the following model:

INTERNAL FORCES

1. Financial resourcesStrong financial strength; Exploiting market opportunities.

2. Production resources and tangible assetsModern information technology platform; Large-scale distribution system.

3. Intangible assets and intellectual propertiesProduct development capacity; Technical assistance from strategic shareholders.

4. Corporate governanceCorporate governance competency in accordance with International governance standards.

EXTERNAL FORCES

1. Social forcesOpportunity derived from sustainability development trend and demographic factors.

2. Environmental forcesClimate change and “going green” business activities.

INPUTS RESOURCES VALUES FOR STAKEHOLDERSPRODUCTS, SERVICES & SUPPLY CHAIN

Financial resources Customers

Tangible assets Shareholders

Human resources Employees

Corporate governance Public administration

Environmental factors Local community

Social factors Environment

Intangible assets (brand and intellectual property) Partners/Suppliers

RISKS AND OPPORTUNITIES

CORPORATE GOVERNANCE

IDENTIFY THE MAIN ISSUES

DEVELOPMENT STRATEGY

ALLOCATING RESOURCES

ENGAGE WITH STAKEHOLDERS

LIFE INSURANCE

INVESTMENT - FINANCE

NON-LIFE INSURANCE

BANKING

ENGAGING SUSTAINABILITY IN THE SUPPLY CHAIN AND IMPROVE THE SUPPLIER SELECTION PROCESS

SUSTAINABLE VALUE CHAIN


GRI

204


To maintain the sustainability factor, from the input phase, we have selected suppliers who fully comply with the legal requirements, have a sense of responsibility for environmental protection and ensure labor rights. The assessment of the environmental, social and governance risks in the supply chain is not only important for Baoviet but also for our investors and customers.

ASSESSMENT INDICATORS INDICATORS SCORE

ASSESSMENT INDICATORS INDICATORS SCORE

SUPPLIER SELECTION PROCESS

At Baoviet, we have built a Supplier Selection Criteria with criterias in the following five (5) aspects:

With the requirements of selecting suppliers as above, we have helped build and raise awareness of sustainable development not only in business partners with Baoviet but also with the community of active businesses. dynamic in the area, contributing to join hands in the process of building a truly sustainable economy.

The scope of review of suppliers is expanding to the whole Group, after focusing on deploying at the Parent Company. Next time, we will increase the number of contractors reviewed on environmental and social issues as well as expand the scope of application across the system. This is a challenge for Baoviet as it aims to build a sustainable value chain by sustainable development, which is still in the awareness stage, turning awareness into actions of each unit will need a lot of time and effort of the business community.

We believe that the issues of corporate governance, environment and society are an important part of evaluating the value and effectiveness of investment in the medium and long term.

QUALITY

• Origins of the goods (if applicable)

• Quality control system follow international standards

• Testing samples meet requirement

• Warranty policy

• Supplied goods meet Baoviet’s need

• Goods that are not environmental hazard

• Both indicators meet the requirements

• Main indicators meet the requirements

• Do not meet the requirements

30

25

0

PRESTIGE

• Business license

• Information self - collected

• Recommendation from intermediaries

• Previouscollaboration with Baoviet

• Business profile from suppliers

• High

• Acceptable

• None

20

15

0

SUPPLY & DELIVERY

CAPABILITY

• Supplier commitment of delivery time and

• location, capacity and transport vehicles

• After-sale services

• Capability to mitigate unexpected risks (if applicable)

• Meet the requirements

• Acceptable


15

10

0

SOCIAL & ENVIRONMENT

RESPONSIBILITY

• Community activities which have been done or performed by suppliers

• Possible impact assessment of business activities toward environment from supplier

• Supplier commitment of social responsibility

• Meet the requirements

• Acceptable


15

5

0

PRICE RAGE & PAYMENT

• Price quotes from suppliers

• Research and comparison with market price

• Payment methods and payment period

• Optimal

• Acceptable

• Unreasonable

20

10

0QUALITY

PRESTIGE

PRICE RAGE AND PAYMENT

SUPPLY AND DELIVERY CAPABILITY

SOCIAL AND ENVIRONMENT RESPONSIBILITY

point

point

point

point

point

30

20

2015

15

Supplier assessment Total score

point100


GRI

204


INVESTMENT PERFORMANCE

Baoviet Holdings’ investment activities comply with the principles of safety and efficiency to increase the benefit of shareholders, customers and ensuring jobs, living standards for employees. In 2020 the management role of BVH was expressed through the implementation of risk management policies, building and deploying the model evaluation and classification of the credit institution to determine the investment limits in financial institutions, continue improving the processes and regulations related to investment activities. BVH also set up the investment monitoring measures to ensure timely action when the counterparts appear to experience credit quality deterioration. As a result, the Group’s investment activities ensure safety, contributing significantly to the overall business result of the Group and each unit.

INVESTMENT PERFORMANCE OF THE GROUP IN 2020

INVESTMENT PERFORMANCE OF BVH IN 2020

At 31/12/2020, the total investment capital of the Group was 134,420 billion, increasing 16.5% compared to last year’s figure. In particular, fixed income investments (deposits and bonds) reached 124,281 billion, or 17.7% higher than 2019’s figure, accounting for 93.9% of the total capital investment. Equity investments reached 5,972 billion, or 6.1% smaller than 2019’s figure, accounting for 4.5% of the total capital investment.

At 31/12/2020, the total investment capital of BVH was 16,766 billion, or 15.6% higher than the figure at 31/12/2019. Approximately 90% of the equity investment portfolio focused on insurance and financial services - the core businesses of BVH. Total investment revenue in 2020 reached VND 1.066 billion.

The Group’s Investment Portfolio at 31/12/2020

No. Items (Unit: VND Billion)

At 31/12/2020 At 31/12/20192020/2019

Amount Proportion Amount Proportion

I. Fixed Income Investment 124,281 93.9% 105,587 92.9% 17.7%

1. Deposits 88,804 67.1% 72,952 64.2% 21.7%

2. Bonds 35,477 26.8% 32,635 28.7% 8.7%

II. Equity Investment 5,972 4.5% 6,358 5.6% -6.1%

III. Other investment 2,167 1.6% 1,741 1.5% 24.5%

Total 132,420 100% 113,686 100% 16.5%

Source: Consolidated Financial Statements_ 2020

BVH’s Investment Portfolio at 31/12/2020

No. Items (Unit: VND Billion)

At 31/12/2020 At 31/12/20192020/2019

Amount Proportion Amount Proportion

I. Fixed Income Investment 4,604 27% 3,190 22.0% 44.3%

1. Deposits 3,744 22.3% 2,131 14.7% 75.7%

2. Bonds 860 5.1% 1,059 7.3% -18.8%

II. Equity Investment 12,163 72.5% 11,313 78.0% 7.5%

Total 16,766 100% 14,502 100% 15.6%

Source: Financial Statements_BVH only_Audited 2020

2019 20192020 2020

64.2

%

5.6%1.5%

28.7

%

67.1

%

4.5%1.6%

26.8

%

14.7%

7.3%

78.0%

22.3%

5.1%

72.5%

The Group’s Investment Portfolio BVH’s Investment Portfolio Deposits Bonds Equity Others Deposits Bonds Equity

Fixed income investments (deposits and bonds)

17.7% higher than 2019’s figure

The total investment capital of the Group

increasing 16.5% comparedto last year’s figure

VND BILLIONVND BILLION124,281 134,420


GRI

204


INVESTMENTS IN 100% SUBSIDIARIES: strengthens the financial capacity of Subsidiaries

THE GROUP PROMOTES ITS ROLE IN MANAGING AND COORDINATING INVESTMENT ACTIVITIES

INVESTMENTS AT BVH: Exceeding the plan

In 2020, the Group will continue to prioritize focusing on core businesses, strengthening the financial capacity of subsidiaries by increasing chartered capital to ensure solvency margin, meet business needs and sustainable development of the units.

At the end of 2020, Baoviet Group continues to maintain its leading position in the insurance market in both life insurance and non-life insurance. Baoviet Life continues to lead the Top 10 “Vietnamese prestigious life insurance companies” for many consecutive years. Baoviet Insurance also received the award “Asia’s most trusted insurance brand” by Global Brand Magazine. Baoviet Fund Management Company is proud to be voted the best Fund Management Company in Vietnam for the 4th time by Global Banking & Finance Magazine - the UK’s leading prestigious magazine on finance and banking, contribute to the strong development of the Group.

On the basis of the strategic orientation for the period 2016 - 2020, in 2020 the management role of BVH was expressed through the implementation of risk management policies, building and deploying the model evaluation and classification of the credit institution to determine the investment limits in financial institutions, continue improving the processes and

regulations related to investment activities. BVH also set up the investment monitoring measures to ensure timely action when the counterparts appear to experience credit quality deterioration. As a result, the Group’s investment activities ensure safety, contributing significantly to the overall business result of the Group and each unit.

Best Fund Management

Company in Vietnam

FIXED INCOME INVESTMENT

• BVH re-invested available fund with suitable terms in line with interest rate movements and cash flow plan; increased investments in corporate bonds to improve investment efficiency.

• Fixed income investment revenue in 2020 reached VND346.7 billion, exceeding the target by 31%.

• Revenues from equity investment reached VND119.7 billion, exceeding 17% of the plan, mainly coming from divestment profits and dividends.

In 2020, in the context of difficulties caused by the COVID-19 epidemic, BVH’s investment activities have achieved positive results, with remarkable increase in revenue compared to 2019, making an important contribution to the achievement of the strategic objectives of the period 2016 – 2020.

Baoviet Holdings’ investment activities comply with the principles of safety and efficiency to increase the benefit of shareholders, customers and ensuring jobs, living standards for employees.

EXCEEDING THE PLAN

BVH’s Equity Investment Portfolio at 31/12/2020

No. ItemAmount (VND Billion) Proportion

31/12/2020 31/12/2019 31/12/2020 31/12/2019

1 Insurance 8,117 7,267 66.7% 64.3%

2 Bank 1,599 1,599 13.1% 14.1%

3 Securities, Fund 1,260 1,260 10.4% 11.1%

4 Real Estate 462 462 3.8% 4.1%

5 Others 724 724 6.0% 6.4%

6 Total 12,163 11,313 100% 100%

Among big projects that Baoviet has invested in, there’s no project that failed to reach the announced or committed schedule. In 2020, to enhance the financial capacity of core subsidiaries, BVH has increased BVL’s chartered capital from 4,150 billion to 5,000 billion which was also the biggest investments of BVH over the year.

EQUITY INVESTMENT


GRI

204


EMBED ESG IN INVESTMENT PROJECTS

IDENTIFY GREEN CAPITAL MARKET

ORIENTATION 2021BAOVIET & GREEN CAPITAL MARKET

GREEN CAPITAL MARKET

We believe that corporate governance, social and environmental mechanism are important factors when assessing the effectiveness of middle and long-term investment. Therefore, besides return indicators, Baoviet also embed the Environmental, Social and Governance (EGS) indicators in our investment selection, review and continued to implement Principles for Responsible Investment when reviewing major investment projects.

As a listed company with capital contributions from many investors, we understand that sustainable development is a competitive advantage in attracting capital. Therefore, Baoviet - as an investor, strives to engage sustainable factors into assessing potential projects.

Baoviet focuses on the core business with 90% of our equity investment portfolio focusing on insurance, investment and financial services, which are also environmentally friendly industries. In 2019, we have always complied with criteria related to governance - social - environmental issues in the management of investment projects and equity investments.

In the past, governance criterion was considered the most important part when evaluating an investment project. But now, according to the newly promulgated procedures of Baoviet, labour usage, community contribution and environmental awareness also

become important criteria for evaluating and adding points to the project. In the near future, we will continue to prioritize the development of our core business - to ensure the sustainable development of Baoviet, and to contribute to the reduction of harmful effects on the environment.

The linkage of sustainability factors for suppliers as well as investment projects helps Baoviet approach closely to the goal of building a sustainable value chain, which benefits Baoviet and its counterparts as well.

Green growth is defined as an important highlight in the development policy of many countries in the world towards sustainable development. Vietnam’s financial market is making efforts to research policies, seeking feasible solutions to promote the development of green capital markets. The shift from traditional capital market to green capital market has been regarded as an important step in creating a strong financial channel for restructuring Vietnam economy, thus moving towards sustainable development in the long term.

On the basis of the strategic orientation approved by the Board of Directors, along with financial and monetary market forecasts, in 2020 The Group follows and expands its investment orientation on the basis of compliance with the principle of safety and efficiency, thus increasing the benefit of shareholders, customers and ensuring jobs, living standards for employees.

In 2021, Baoviet aims to actively participate in the green capital market by considering investment in green financial products of great significance such as: List of green projects built by the State Bank, or local governments’ green bonds, investment projects in the fields of wind power, solar power, or construction of green buildings, etc ... Although Vietnamese bond market has changed remarkably over the past few years, green bond market is still small and has a long way to go. As a member of Vietnam Bond Market Association (VBMA), Baoviet commits to full participation in training courses and seminars related to the green bond market and wishes to collaborate with other parties to revise related policies. It is strongly believed that together we can help promote the green bond market development.

Baoviet hopes to join the Securities and Exchange Commission and other related parties to develop and implement a framework for green finance and green financial products, thus maintaining the business effectively while ensuring environmental and social benefits; which, in turn, helps maintain the sustainable development of green capital market.

Baoviet’s investment activities comply with the principles of the United Nations’ responsible investment (including not to invest in projects negatively affecting the environment or employing child labor ...), invest in insurance, investment and financial services - environmentally friendly industries. In addition, Baoviet also holds many other VNSI stocks such as MBB, BID, VNM, FPT…., to name just a few.

With the leading scale of total assets in the insurance market, Baoviet has increased its investment back into the economy with investment orientation based on safety and efficiency principles, ensuring the Group’s sustainable development, thereby ensuring the benefit of shareholders, customers and employees.

Baoviet is one of the big enterprises pioneering in researching and seeking financial support towards green growth through the reduction of greenhouse gas emissions, environmental pollution and the green production.

Engage ESGs factors into investment

analysis and decision making processes

Engage ESGs factors into issues related to Stakeholders’

interests

Develop a suitable disclosure regime for ESGs issues at

enterprises invested by Baoviet

Cooperate with other financial

institutions to foster the development of

green finance market

Report on the implementation

progress

PRINCIPLES

1PRINCIPLES

OF RESPONSIBLE INVESTMENT BAOVIET IS APPLYING IN OUR PROJECTS INCLUDE:

PRINCIPLES PRINCIPLES PRINCIPLES

2

05 PRINCIPLES

3 4 5

CORPORATEGOVERNANCE

SOCIAL

ENVIRONMENTAL


GRI

204


Therefore, Baoviet recognizes that improving anti-corruption through adherence to honesty, corporate governance practices and responsible business practices will also have a positive impact on the business itself. meet the expectations of the market, international standards and stakeholders.

GRI

205

ANTI-CORRUPTION

SCOPE OF REPORTImplementation of prevention measures

and detection of corruptionCorruption cases

confirmed and actioned

IMPLEMENTATION OF MEASURES FOR PREVENTING AND REVEALING CORRUPTION

MANAGEMENT APPROACH

MANAGEMENT TOPIC

ISSUE AND IMPLEMENT ANTI-CORRUPTION POLICY

MANAGING RISK OF CONFLICT OF INTEREST


Within the enterprise, Baoviet has been applying some anti-corruption policies such as:

In addition, Baoviet is in the process of perfecting the mechanism and regulations to ensure the effective operation of channels of denunciation and corruption to receive complaints and denunciations with clear policies and easy to understand and reliable procedures. As a basis for strengthening Baoviet Holdings’ corporate integrity. In the future, Baoviet will choose a third party in order to ensure transparency and confidentiality.

On the basis of awareness of the prevention and management of the risk of conflict of interest to help businesses reduce losses and increase business efficiency, Baoviet has issued specific regulations on disclosure and supervision of conflict risk. the benefits in the Charter and internal management regulations and the form of declaration of risk of conflict of interests of the employees.

Beside that, Baoviet also built a transparent working environment, integrity; Create a working environment that encourages the initiative and creativity of employees. Baoviet believes that the consistent implementation of the corporate integrity policy helps the employees understand the message and expectations of the company’s leaders about the integrity of the work, encouraging employees to compete healthy. Strong with ability and creativity, be treated and evaluated, rewarded, punished fairly.

The public and transparent implementation of regulations and processes in the operational process will contribute to anti-corruption and at the same time help enterprises improve the awareness and responsibility of employees in corporate governance.

In order to prevent corruption, Baoviet has introduced a Code of Conduct and Professional Ethics to apply management measures and compliance control policies for employees. Baoviet has also combined various measures and channels to communicate to all leaders and employees about policies and regulations against corruption and bribery.

CORRUPTED ACTIONS AND ACTIONS OF IMPLEMENTATIONIn 2020, at Baoviet Holdings, including its member companies, through internal audit, supervision and inspection work of the Baoviet Holdings’ Party Committee and Inspection Committee of Baoviet Holdings’ Party Committee, no corrupt incident was recorded.

To fulfill the obligations of the enterprise to the State and laborers.1.

To implement the statistical regime according to the provisions of law.2.

Publicity, transparency in the operation of enterprises.3.

To formulate and implement regulations on internal control.4.

Carry out internal audit, inspection and supervision of the Party Committee and the Supervisor Committee.5.

Corruption not only affects businesses but also brings negative impacts on the environment, economy and society such as: poverty of transitional economies, environmental damage, abuse human rights, democratic abuse, misallocation of investment capital, and weakening the rule of law.


We believed that monitoring, adapting and flexible application of technology in energy and resources consumption are small but extremely necessary actions in order to reduce the impact on the environment, prepare for epidemics, climate changes and protect the community environment.

ENERGY

WATER, EFFLUENTS, EMISSIONS AND WASTE

ENVIRONMENTAL COMPLIANCE

STANDARDSENVIRONMENT

GRI

300

GRI

302

GRI

305

GRI

307

As an enterprise operating in the financial sectors, the direct impact on Baoviet’s business environment is negligible. However, we believed that monitoring, adapting and flexible application of technology in energy and resources consumption are small but extremely necessary actions in order to reduce the impact on the environment, prepare for epidemics, climate changes and protect the community environment.

182 183Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION ENVIRONMENT STANDARDS

SCOPE OF REPORT

Supervising and controlling energy consumption

Solutions for energy saving in operations

Solutions for energy saving in buildings

GRI

302

ENERGY

During operations, Baoviet is aware that when the enterprise changes or balances the direct or indirect consumed energy, this will help minimize the environmental impacts. We believe that when this small actions are spread within the business community, it will bring drastic changes to greening and rebalancing Vietnam ecological environment. Therefore, for better control of energy consumption, the energy and resources were supervised and controlled monthly. The reported data is collected within Baoviet Holdings energy consumption.

MATERIALITY TOPIC Before 2020, climate change is one of the biggest challenges for humanity in the 21st century. However, the complex outbreak of a pandemic like Covid-19 has created a “double crisis” for humanity.

To be able to face this “double crisis”, Baoviet not only focuses on controlling energy and ressources consumption in order to reduce the intensity of greenhouse gas emissions, but also flexibly changes to adapt to the current situation. The new normal after Covid.

MANAGEMENT APPROACH MANAGEMENT PURPOSE

MANAGEMENT APPROACH

We believe that the environmental goals will become easier to be achieved when our stakeholders, especially stakeholders in Baoviet’s value chain, join hands to engage the goals in business operation in order to timely adapt with the new normal. Therefore, we can reduce the consumption of energy resources, raise awareness and contribute to protecting the environment.

1.

Raise awareness of environmental protection

and climate change resilience

2.

Inspect disposable sewage system

3.

Reduce the usage of energy and natural

resources

4.

Apply environmental criteria in supply chain and investment plan

In terms of energy consumptions in Baoviet buildings, we applied BMS ( Building Management System) and enhanced the internal communication to raise awareness of environmental protection among employees.

Besides that, Baoviet determined that the application of advanced technology solutions will support digitalize operational transactions and reduce paper waste to the environment. In terms of working space, all offices in Baoviet have proper windows and sunshades to be ventilated with natural sunlight, limit exposure to ultra-violet radiation, and against heat loss during air-conditioning. In addition,

when carrying renovations on office areas, Baoviet required constructor to provide solutions to limit the rising temperature caused by the greenhouse effect.

In 2020, at the building 233 Dong Khoi, Baoviet renovated the elevators waiting area at the parking floor with a closed glass wall design, separating the elevator waiting guests from the parking area. It will make the customers feel comfortable, bringing a cool and airy space for users and avoiding the loss of air conditioning power between the waiting area and parking area.

EMBEDDING ENVIRONMENTAL GOALS IN OPERATIONS

MANAGEMENT APPROACH ASSESSMENTIn the new normal, Baoviet understood that many activities need to be immediately deployed in order to protect the environment during business operations. For this reason, Baoviet identifies management goals that need to be changed and focuses on three main issues: Increase efficiency of energy consumption in business activities; Transform to renewable energy; Limit and control of waste, emission during operation.

In 2020, the situation of the Covid-19 pandemic was complicated; the Prime Minister promulgated directive 16/CT-TTG about social distancing from the end of March 2020 to the end of April 2020. This social distancing causes businesses to change the way they do business and transform to online business; this way has saved an enormous amount of money in transportation as well as operating costs for offices and buildings facilities.


ENERGYGRI

302

SUPERVISING AND CONTROLLING ENERGY CONSUMPTION

Fuel consumption of Baoviet Holdings in 2020 is 12,384 liters (reduced 31% compared with 2019, 38% and 62% decreased compared with 2018 and 2017 ). Moreover, Baoviet reduced 5,645 liters of fuel consumption in 2020, cost-saving up to 170,3 million VND. Fuel consumption of Baoviet Holdings is mainly from cars carrying working delegations to cities and provinces across the country, primarily concentrating in the North and Central provinces where Baoviet was implementing social security programs.

Electricity consumption of Baoviet Holdings is collected from 3 locations: Head office of Parent Company – Baoviet Holdings (No. 72 Tran Hung Dao Street, Hanoi ), Baoviet Information Technology Centre (No. 71 Ngo Sy Lien Street, Hanoi ) and Baoviet Tower ( No. 223 Dong Khoi Street, Ho Chi Minh city ). Accordingly, the total electricity consumption of all 3 buildings in 2020 is 1,055,751 kWh (3,801 GJ), cost 7.1 billion VND.

In 2020, Baoviet Holdings had a rotating online working period and a temporary social distancing period according to the Prime Minister’s directive 16 due to the Covid-19 pandemic outburst; During the period of online working through intranet, the office machines still have to operated to maintain connectivity. Therefore, the electricity consumption remain unchanged. Despite this, electricity consumption in 2020 cut down 5% compared to 2019. Accordingly, the amount of electricity saved is 49,770 kWh (179 GJ) in 2020, equivalent to 350.7 million VND in usage cost.

With a view to better control energy consumption in business operations, Baoviet kept track of monthly power and fuel consumption while raising the awareness of saving to employees in Parent Company.

Electricity consumption by month (kWh)

20,000

40,000

80,000

100,000

60,000

120,000

2017 2018 2019 2020

Gasoline consumption by month (liters)

1,000

2,000

3,000

4,000

2017 2018 2019 2020

JAN

JAN

FEB

FEB

MAR

MAR

APR

APR

MAY

MAY

JUN

JUN

JUL

JUL

AUG

AUG

SEP

SEP

OCT

OCT

NOV

NOV

DEC

DEC

Fuel consumption of 2017 - 2020 (liters)

5.000

10.000

20.000

30.000

25.000

15.000

35.000

2017 2018 2019 2020

12,3

84

32,863

20,0

30

18,0

29

Electricity consumption of 2017 - 2020 (kWh)

200,000

400,000

800,000

1,000,000

600,000

1,200,000

2017 2018 2019 2020

326,

478

493,

856

1,05

5,75

1

LITER OF GASOLINEWAS SAVED

KWH OF ELECTRICITYWAS SAVED

EQUIVALENT

1,00

5,98

1

1.497TRASH BAGS

ARE RECYCLED

582TREES EXCHANGED

C02 INTO O2

35,2TONS OF CO2/YEAR

EMISSIONSREDUCED

EQUIVALENT13.3TONS OF CO2/YEAR

EMISSIONS REDUCED 564

TRASH BAGS ARE RECYCLED

219TREES EXCHANGED

C02 INTO O2


ENERGYGRI

302

SUPERVISING AND CONTROLLING ENERGY CONSUMPTION

LIGHTING AND ENERGY MANAGEMENT SYSTEM

AIR-CONDITIONING AND VENTILATION SYSTEM

CAR PARKING MANAGEMENT SYSTEMCAMERA SYSTEM

FIRE ALARM SYSTEMELEVATOR SYSTEM

ENTRANCE AND EXIT MANAGEMENT SYSTEMRADIO SYSTEM

According to the summary report of the World Business Council on Sustainability, most of the world’s buildings use 60% of the energy source, causing a rapid increase in the greenhouse effect. Therefore, Baoviet has promoted the energy-saving campaign throughout the system.

Solutions for energy saving in operations

Solutions for energy saving in buildings

Implement rational monitoring, maintenances and operations align with demands;1.

Reduce power consumption of air-conditioning systems by replacing low-powered local air conditioners with modern air-conditioners, using inverter technology, installing curtains or using insulating glass;

2.

Regularly cleaning all heat exchangers, especially air-cooled condensers, that avoid dust which will reduce the capacity of the devices;

4.

Ensuring the quality of soft water for water chiller systems;5.

Control outlet loads, install sensors for rooms/areas;3.

Maintaining and repairing damage in time to avoid energy loss for the system;6.

Hiring professional employees to manage and operate air-conditioning and ventilation systems in buildings brings high energy-saving efficiency.

7.

Being aware of the impacts of climate change, Baoviet has strengthened internal communication to raise employees’ awareness through energy saving during working hours. Besides, we also invest in an application of information technology in order to digitalize operational transactions and reduce paper waste to the environment.

In order to supervise and control energy consumption, besides raising awareness among the enterprise employees, the advanced information technology solutions will be the tool to support savings save energy. Therefore, all Baoviet buildings have applied and promoted the BMS (Building Management System) performance, which controls all techniques in the building such as electricity, water supply system, air conditioning, ventilation, fire alarm system, etc. This system ensures that all equipment is timely and correctly operated.

In term of working space, all Baoviet offices glass windows can be swiped up and combine with sun protection function that help ventilation, bringing natural light, limit the negative influence of solar radiation, while preventing temperature loss during air-conditioning. When renovating the office areas, Baoviet always require the constructors

to provide solutions of preventing indoor heat absorption which is caused by the greenhouse effect toward large glass arrays.

Understanding that all electrical equipments are still activated even when there are no users in the office which lead to electricity cost increase, Baoviet has installed sensors in the corridors, restrooms, etc. in the headquarters building to make sure that the electricity and water will automatically cut off when no one is using it.

In buildings, the most energy consuming components are air conditioning system, auxiliary equipment (water pump, ventilation and fan system), lighting system, office equipment system and elevator system. Accordingly, the potential for energy savings can be optimized, resulting in savings of 10-40% in usage costs.

AIR CONDITIONING SYSTEM(50% electrical power)

• Periodic maintenance

• Maintain a temperature of 25-27 degrees C with average humidity and always ensure air circulation to limit the development of Corona virus.

• Turn off all the air conditioner after 17:30

LIGHTING SYSTEM (40% electrical power)

• Replacing low-efficiency lighting systems with energy-efficient lighting fixtures

• In term of outdoor lighting devices, equip automation system to turn on and off align with demand (according to time, according to the brightness of the environment...).

HOT WATER SYSTEM (10% electrical power)

• Replace local hot water heating with hot water supply centers for the entire building.


GRI

305


As an enterprise with financial services business activities, Baoviet business activities do not cause significant impacts on the environment. However, Baoviet offices and buildings also focus on waste and wastewater as an effective environmental protection method.

MATERIALITY TOPIC

In 2020, Baoviet Holdings continued to maintain its environmental impact assessment from the operation of Baoviet buildings headquarters in Hanoi and Ho Chi Minh city. The evaluation of water and wastewater standards is carried out at the headquarters and branches of Baoviet Holdings in Hanoi and Baoviet Building No. 233 Dong Khoi, Ho Chi Minh city.


Reduce or eliminate negative impacts on the environment by minimizing waste, emissions, and wastewater, thereby reducing impacts on public health and the natural environment.

ASSESSING MANAGEMENT METHOD

MONITORING AND CONTROLLING EFFLUENTS AND DOMESTIC WATER

Baoviet has using clean water to serve daily life, and business has licensed by the Hanoi Department of Natural Resources and Environment to discharge wastewater into water sources according to regulations, also installed water flow meter used. Besides that, Baoviet also has taken measure to minimize the pollution concentration of wastewater such as dredging, unclogging manholes, disinfecting with Clorin B, ensuring that wastewater discharged into the environment meets environmental standards.

As an enterprise with financial services, Baoviet business activities do not cause signìicant impacts to the environment. However, the control of discharge sources is an environmental protection measure applied to Baoviet buildings in Hanoi.

According to a recent research of British scientists in Wuhan, a secondary infection method of nCoV is warned as wastewater. Similar to SARS, the risk of pathogens entry from infected waste that exposed to the environment, into the food chain, is very high. Accordingly, Baoviet has increased measures to control emissions at Baoviet buildings. With a wastewater treatment system that meets QCVN14:2008/BTNMT standards, wastewater was treated and disinfected according to a strict process before being discharged to the receiving water source, strictly abide by the law on the protection of natural resources and the environment of Vietnam. Moreover, the building’s wastewater receiving system still works well even in heavy rain.

In 2020, water consumption of Baoviet Group was collected in 3 locations: Head office of Parent Company – Baoviet Holdings (No. 72 Tran Hung Dao street, Hanoi ), Information Technology Centre of Baoviet Holdings (No. 71 Ngo Sy Lien Street, Hanoi ) and Baoviet Tower of Baoviet Saigon (No. 233 Dong Khoi Street, Ho Chi Minh city). Accordingly, water consumption of Baoviet holdings in 2020 is 517m3 (equivalent to 8.2 million VND), a decrease of 58% and 28% compared with 2019 and 2018. In the second half of 2017 and the first half of 2018, there was a sharp increase in water volume due to repair and expansion of the working area at Baoviet Information Technology Centre.

Water consumption of 2017 - 2020 (m3)

50

100

300

400

350

250

150

200

450

2017 2018 2019 2020

Q1 Q2 Q3 Q4

M3

WATER CONSUMPTION IN 2020

109 102

204

305

79

136 142

97

142120

135 120

415

374

228 228

SCOPE OF REPORT

Monitoring and controlling effluents and domestic water

Monitoring and controlling greenhouse gas emission at workplace

Solutions for waste resource treatment at workplace

MANAGEMENT METHOD

Baoviet Holdings continue to maintain the assessment of environmental impacts from the operation of Baoviet buildings in Hanoi. The assessment included:

Report on implementing environmental protections in recent years, including measures to control emission, water pollution, solid waste, and hazardous waste treatment.

2.

Analysis of energy consumption include electricity and fuel consumption in 2020 (reported at GRI 302).

1.

9 M3/DAY

AVERAGE EFFLUENTS DISPOSAL

43 M3

AVERAGE WATER CONSUMPTION

8.2 MILLION VND

COST OF DOMESTIC WATER IN 2020

33.1 MILLION VND

COST OF PURE DRINKING WATER IN 2020


By including the content of water saving in the company rules, the divisions which are in charged of managing the buildings wastewater and domestic water commit to continue the water saving communication projects, minimizing the amount of waste water to protect the environment.

13.3TONS OF CO2/YEAR

EQUIVALENT EMISSION REDUCTION

5,614 LITERS OF FUEL ARE SAVED

EQUIVALENT EMISSION REDUCTION

35.637 kWh ELECTRICITYARE SAVED


300 M2 GREEN TREES ABSORB



MONITORING AND CONTROLLING GREENHOUSE GAS EMISSION AT WORKPLACEDue to activities of industrial production such as burning fuel, decomposing fat, producing chemicals, ... or daily activities such as means of transportation refueling, cooking, forests burning, ... the entire global CO2 emissions are alarming.

In each building, depending on the permitted conditions when arranging the premises, Baoviet alternately sets green spaces to create fresh air, minimizing the amount of CO2 emitted into the atmosphere. Particularly in Baoviet financial center building 233 Dong Khoi, more than 300 m2 with ornamental plants are arranged to create an open and green space at the building as well as an economical and effective CO2 filtration system.

In addition, the policy of reducing travel and firmly shutting down online business activities has helped lower fuel costs, saving 5,614 liters of gasoline in 2020. Power-saving activities of the building and employees have helped reduce 35,637 kWh of electricity in 2020. These have helped reduce energy costs and reduce greenhouse gas emissions by a significant amount.

When the amount of CO2 emission exceeds the standard level, they absorb heat from sunlight, reflect and spread the heat, causing the greenhouse effect and temperature increase of the earth.

Although it is a financial company that does not impact the environment, the buildings managed and used by Baoviet strictly control waste into the atmosphere. Furthermore, according to the Greenhouse Gas Protocol (GHG Protocol), Baoviet is developing regulations on managing toxic gas emission sources.

GRI

305


Sources of Baoviet buildings greenhouse gas emission

CO2 SF6 CH4 NF3 HFCS PFCSN4O

SCOPE 1 SCOPE 3SCOPE 2DIRECT EMISSION

SOURCESOTHER EMISSION SOURCES

INDIRECT EMISSION SOURCES

POWER GENERATION SYSTEM

MAINTENANCE AND REPAIR ACTIVITIES

ELEVATOR SYSTEM

TRANSPORTATIONS OF SUPPLIERS

FUEL COMBUSTION FOR OPERATION SYSTEM

AIR CONDITIONING SYSTEM TRANSPORTATIONS

OF CUSTOMERS, EMPLOYEES

OFFICE EQUIPMENTS

TRANSPORTATIONS TRAFFIC AROUND

THE BUILDING

Greenhouse Gas Protol (GHG Protocol) is a widely used method to evaluate and manage greenhouse gas emissions developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBSCD). The GHG report distinguished in three areas that are currently used by systems around the world, including:

• SCOPE 1: Direct emissions - are source emissions at areas owned or controlled by the company.

• SCOPE 2: Indirect emissions – are emissions from power generation purchased outside and consumed at a production facility owned or controlled by the company.

• SCOPE 3: Indirect emissions from other companies, emissions from sources not owned and controlled by the company.

BUSINESS TRANSPORTATIONS


SOLUTIONS FOR WASTE RESOURCE TREATMENT AT WORKPLACE

Every year, The Environmental Protection Reports are always devotedly implemented by Baoviet. This report covers solutions to reduce wastewater pollution through supplement of microbial products, cleaning sewer systems, periodic inspection of wastewater treatment systems, collection and drainage systems to avoid clogging sewage.

The toilets and stormwater drainage systems in the building generated wastewater.

If the effluents sources are not treated before discharge and regular maintenance of the drainage system, effluents from the facility will cause leakage, affecting the surrounding environment and human health.

Technical solutions

• Wastewater before being discharged into the general drainage system meets the standards of QCVN14:2018/BTNMT;

• Hire a qualified unit to conduct monitoring every three months and annually report on the situation of wastewater collection, treatment, and discharge of wastewater to the Department of Natural Resources and Environment according to regulations;

• Add microbial products to increase septic tank efficiency, adding disinfectants to disinfect wastewater when discharged into water sources;

• Regularly check the collection system and drainage system to avoid blockage and overflow even in adverse weather.;

• Organize training, improve management capacity for employees in charge of environment and wastewater treatment.

Enviromental solutions

• Put signs, instructions on water use and dispose of garbage in the toilet area. Raise employees awareness in water use and discharge activities, keep the sink clean and avoid clogging;

• Place awareness messages on water conservation in areas such as faucets, sinks, toilets and water dispensers.

GRI

305

Baoviet Environment Protection Scheme also includes detailed information about solutions for each type of waste and approved by the Vietnam Department of Natural Resources and Environment for implementation in Baoviet buildings.

Emissions from employees and the company’s transportations at the building (using fuel and diesel oil), transportations of customers visiting and passing by the building at Tran Hung Dao street.

Dust and emissions from the transportations increased the level of air pollution in the area, causing health consequences that affect the local community.

Technical solutions

• Place trees to reduce dust in the air. At Baoviet building at 233 Dong Khoi Street, Baoviet has reserved nearly 300 square meters of space on the 10th floor to provide a landscape of trees, creating a fresh, green environment;

• Request vehicle owners to turn off engine before entering the building;

• Daily clean the building area;

• Arrange ventilation system at the parking basement to keep the air fresh;

• Separate regional for high-emission engineering machineries such as large-emission systems such as power generation systems, ventilation systems, water pumps, and distinct air handling systems.


• Launch Tree planting program for employees to have more trees and reduce emissions in Baoviet’s working place;

• Promote 5S project for a green, clean, and efficient working environment;

• Encourage each desk to put a small green tree, and each office has at least two large potted plants to purify the air;

• Regulations for separate placement of office equipment such as printers, fax machines, arrangement of different air handling systems.

EFFLUENTS EMISSIONS

Baoviet Environment Protection Scheme is summarized as follow:


COMMON WASTE

HAZARDOUS WASTE

Waste contains substances or hazardous substances (flammable, explosive, corrosive, toxic, ..) or interacts with other substances causing harm to human health and the environment.

Common solid waste mostly discharges from activities of employees in the building.

Common waste includes paper waste, dry pens, cartons, fruit skins, … In addition to regulations on proper waste disposal, garbage sorting will also help the company collect and recycle waste faster and more efficiently.

Technical solutions

• Baoviet provides 01 large composite trash can and 01 small bin at each floor to collect waste;

• Everyday building janitor cleans out every renter ‘s office room and hall;

• At the end of workday building janitor collects trash from all trash cans to the garbage collection site at the main building gate;

• Waste types after being classified are collected and collected in a centralized manner. Sanitation workers will segregate waste types according to each area. This area will be cleaned by the company every day so as not to affect the surrounding environment. After that, sign a contract, transfer hazardous waste and ordinary waste to the functional unit for treatment.


• Raise awareness of employees in environmental protection;

• Reuse stationery including pens or plastic flares;

• Strengthen measures to control pollution sources by regularly monitoring, inspecting and maintaining machinery and equipment, constantly improving and upgrading treatment systems to achieve higher goals.

Within the company building, this hazardous waste is maintly from burning fluorescent bulbs, printing ink, oil-soaked rags or cleaning chemicals,...

Technical solutions

• Store, classify and collect according to Circular 36/2015 / TT-BNTMT June 30, 2015 on hazardous waste management. Accordingly, hazardous waste is stored in a separate bin, with a separate storage area and labeled hazardous waste warning;

• Signing a contract with a unit responsible for collecting and transporting hazardous waste of the building. The time for storing hazardous waste in the building does not exceed 1 year in accordance with the provisions of Circular 36/2015 / TT-BNTMT June 30, 2015.


• Some of the environmental solutions to deal with this waste are bio-composting, incineration, landfilling and recycling;

• However, with the hazardous nature of this waste, the problem of collection and treatment is still assigned to a third party with expertise to reduce environmental pollution.

WATER, EFFLUENTS, EMISSIONS AND WASTEGRI

305

In addition to Baoviet Environment Protection Scheme that have been implemented, Baoviet Holdings has also taken some additional measures at the headquarters buildings in 2020:

Supplementing the post-treatment wastewater disinfection system for the system as well as microbiological culture for aerobic tanks to improve the aerobic treatment process and disinfecting water with chlorine before discharging it into the environment;

1.

Installing a system to measure the amount of wastewater discharged in two buildings 71 Ngo Sy Lien and 72 Tran Hung Dao, Hanoi to control the amount of waste water from the buildings;

3.

Improving the wastewater treatment system of 233 Dong Khoi building according to the major renovation and repair plan (the building has been in operation for 10 years);

4.

Cleaning the water tank to ensure clean water supply for the buildings;2.

Launching the movement to use water sparingly at the offices in the system;5.

Additional discharge risk scenarios, training and response drills in the event of a discharge incident at the building.6.

System of propaganda and instruction signs at the building’s toilets

From the inside

1 2 3 4 5


GRI

307

ENVIROMENTAL COMPLIANCE

SCOPE OF REPORT

Compliance with regulations on environmental protection

Coordinating with suppliers to implement environmental protection measures

Compliance with periodic effluents quality monitoring

Engaging employees in green business activities

MATERIALITY TOPICAs a financial service provider, Baoviet’s business operations have little impact on the environment. However, Baoviet insists that it still needs to behave responsibly with environmental impacts through compliance with environmental regulations and pollution control, sewage treatment and recycling processes, resources saving.


MANAGEMENT APPROACH

Baoviet strictly commit to regulations on environmental protection to protect the life and health of employees and does not affect the community environment.

MANAGEMENT APPROACH ASSESSMENTRegarding environmental protection: Signed a contract with a functional unit to propose a project on environmental protection. Signed garbage collection contracts and transportation of domestic waste.

Raising awareness of employees in the whole system in compliance with regulations on environmental protection and responding to climate change such as energy, natural resources use in a economical and efficient way, planting many trees, forming a habit of environment-friendly consumer.

Compliance with regulations on environmental protection

Baoviet also promotes the engagement of employees in businesses and communities in the activities of greening business operations. , events on ecosystem protection so that this activity is done voluntarily and regularly.

Engaging employees in green business activities

In the process of investment in capital contribution to enterprises and projects, Baoviet has reviewed environmental impact assessment reports related to enterprises. , project before making an investment. During the investment process, Baoviet continues to monitor and make recommendations for enterprises to implement appropriate environmental protection solutions during the project implementation process. In addition to environmental protection and maintenance activities conducted by individual businesses, Baoviet also cooperates with suppliers to implement environmental protection measures more systematically and professionally.

Coordinating with suppliers to implement environmental protection measures

Periodic monitoring of wastewater and emissions at Baoviet Buildings.

Compliance with periodic effluents quality monitoring


ENVIROMENTAL COMPLIANCEGRI

307

COMPLIANCE WITH REGULATIONS ON ENVIROMENTAL PROTECTION

COMPIANCE WITH PERIODIC EFFLUENTS QUALITY MONITORING

fines) and the information recorded from the monitoring system of regulation compliance.

Environmental monitoring report at building 71 Ngo Sy Lien and 8 Le Thai To, Hanoi in 2017-2018 is implemented based on the following legal bases:

• Vietnam Law on Environmental Protection, 2014.

• Circular No. 21/2012 / TT-BTNMT regulating quality assurance and quality control in environmental monitoring; Circular 36/2015 / TT-BNTMT dated June 30, 2015 on hazardous waste control.

• Units participating in monitoring have certified to issue VIMCERTS 006 certificate and Certificate of recognition of Vilas 372.

In 2020, Baoviet Holdings and its subsidiaries hardly recorded any minutes/notification in relation to violations of law or regulations on environment. The confirmation of no violation is also based on the data from the audit results (no record of

Since 2018, Baoviet Group installed a waste water measuring system at 71 Ngo Sy Lien and 72 Tran Hung Dao Street, Hanoi to control the wastewater flow into the environment from buildings. At the same time, Baoviet Group also analyzes the amount of wastewater periodically every quarter so that it can take timely measures to solve it if it detects that it exceeds the prescribed standards.

REPORT ON THE RESULTS OF WASTEWATER QUALITY ANALYSIS AT THE MAIN BUILDINGS IN 2020

Analytical information:

Results of wastewater quality analysis after treatment in 2020

No. Analytical indicators Unit Analytical result (17/07/2020)

Analytical result (26/12/2020) Standards (*)

1 pH - 7.89 6.87 5 – 92 TSS mg/L 67 72 1003 Total suspended solids (TSS) mg/L 604 762 1,0004 BOD5 mg/L 32 28 505 Sunfua mg/L 0.36 0.42 4.06 Amoni mg/L 7.28 9.53 107 Total P mg/L KPH (MDL=0.05) KPH (MDL=0.030) 508 Total P mg/L 5.92 6.12 109 Total of surfactant mg/L 0.54 0.42 10

10 Total mineral oil mg/L 8.4 7.6 2011 Coliform MPN/100mL 900 1,400 5,000

(Source: Tan Huy Hoang Environmental Consulting Service and Trading Co., Ltd) (*) The standard is the national technical regulation on domestic waste water (QCVN 14: 2008 / BTNMT)

when waste water discharged into receiving water sources is not used for drinking water supply

Time of mearsurement and sampling

09/07/2020, 18/12/2020

Time of result returned 17/07/2020, 26/12/2020

Analysis frequency Once every six months

Analysis location a point at the wastewater treatment system outlet

REPORT ON THE RESULT OF AIR QUALITY ANALYSIS AT THE MAIN BUILDING IN 2020


Results of air quality analysis in 2020



1 Noise dBA 68.2 69.4 702 Temperature oC 35.0 30.2 -3 Dust µg/m3 229 204 3004 NO2 µg/m3 61 32 2005 SO2 µg/m3 83 55 3506 CO µg/m3 4,619 4,360 30,000

(Source: Tan Huy Hoang Environmental Consulting Service and Trading Co., Ltd)

(*) The standard is the national techical regulation on noise (QCVN 26:2010/BTNMT) and air quality (QCVN 05:2013/BTNMT)


09/07/2020, 18/12/2020



Analysis location The gate of the

headquarters building

ASSESSMENT OF ANALYTICAL RESULTS AND RECOMMENDATIONS OF THE INSPECTION TEAM

Air environment• CONCENTRATION OF GASES: The concentration of toxic gases at the inspection locations in the work area and around the unit

are within the allowable limits according to TC 3733-2002 / BYT-QD, QCVN 05: 2013 / BTNMT.

• CONCENTRATION OF DUST: The concentration of dust concentration at the inspection locations in the work area and around the unit is within the limits allowed under TC 3733-2002 / BYT-QD and QCVN 05: 2013 / BTNMT.

Water environment Domestic waste water: The content values of the analyzed indicators in the waste water samples at the unit are within the permitted limits of QCVN 14: 2008 / BTNMT, column B.

Recommedations Continue to maintain the control system, minimize impacts to ensure environmental quality according to the regulations.

REPORT ON THE RESULT OF EMISSIONS QUALITY ANALYSIS AT THE MAIN BUILDING IN 2020


Results of emissions analysis in 2020



1 Flow m3/h <20,000 <20,000 -2 Nito oxit (NO2) mg/Nm3 306 285 6803 Sulfur dioxide (SO2) mg/Nm3 285 269 4004 Carbon oxit (CO) mg/Nm3 325 306 8005 PM dust mg/Nm3 116.3 104 160

(Source: Tan Huy Hoang Environmental Consulting Service and Trading Co., Ltd)

(*) The standard is the national techical regulation on industrial emssions for dust and inorganic substances (QCVN 19:2009/BTNMT)


09/07/2020, 18/12/2020



Analysis location Generator chimney



307

COORDINATION WITH SUPPLIERS TO IMPLEMENT ENVIROMENTAL PROTECTION MEASURES

monitoring, collection, transportation, treatment of waste and system maintenance to ensure labor safety and efficient use of electricity. Contracts with environmental providers have been carried out annually by Baoviet and will continue to be expanded in the upcoming years.

In addition to the environmental protection and maintenance activities carried out by enterprises, Baoviet also coordinates with suppliers to implement environmental protection measures systematically and professionally. In 2020 Baoviet Holdings has invested more than VND 2 billion in contracts for

Baoviet has applied environmental protection measures through signing contracts with suppliers and providers of environmental consulting service, daily domestic waste collection and building sanitation service as followed:

No. CONTRACTS WITH PROVIDERS CONTRACTS CONTENTSCONTRACT VALUE ( VND )

2016 2017 2018 2019 2020

1Contract for domestic waste collection service

• Providing waste collection tools

• Collecting waste generated in business activities32,328,000 32,328,000 32,328,000 32,328,000 35,560,800

2Contract for the transportation of dangerous waste

• Providing transportation

• Transportation of waste to the treatment site (Nam Son Waste Treatment Complex), storage and treatment of waste

26,400,000 26,400,000 26,400,000 12,002,400 6,061,000

3 Contract for the building sanitation

• Daily and weekly cleaning within the building precincts

• Control of water usage, toilet paper, cleaning chemicals

• Gathering of domestic waste, collection and recycling of used paper

928,884,000 1,038,180,000 1,092,000,000 1,201,200,000 1,364,420,000

4Contract for periodical environmentalMonitoring

• Collecting samples, analyze periodical monitoring samples of domestic waste water, toxic gas, dust concentration

• Making results report and recommendations for environmental factor maintenance

23,408,000 23,408,000 20,000,000 22,000,000 22,000,000

5Contract for waste water treatment plant operation and maintenance

• Operating, controlling the volume and status of waste water treatment

• Maintaining waste water treatment system to avoid spilling and breakdown of sewer pipes resulting in environmental pollution

88,000,000 66,000,000 0 0 11,000,000

6 Contract for M&E system maintenance• Maintenance, maintaining electrical management capability, reducing

electrical incidents, protecting labor’s safety and using electricity efficiently

1,227,600,000 1,227,600,000 607,600,000 668,360,000 469,247,100

7 Contract for elevator maintenance• Maintenance, maintaining useful time, reducing elevator incidents,

protecting labor’s safety and using electricity efficiently184,252,992 189,619,584 195,308,190 201,168,000 267,113,000

8Contract for transformer station maintenance

• Maintenance, reducing electrical incidents, maintaining electricity usage efficiency, preventing fire and explosion

30,965,150 30,965,150 30,965,150 30,965,150 30,965,150

TOTAL 2,541,838,142 2,634,500,734 2,004,601,340 2,168,023,550 2,206,367,050



307

ENGAGING EMPLOYEES IN GREEN BUSINESS ACTIVITIES

The awareness of environmental protection should start from building a clean and opened working environment. Therefore, Baoviet has cooperated with Vietnam Productive Center to train, guide and conduct periodic inspection of storage, arrangement and maintenance of working space in all buildings of Baoviet.

PROMOTE

STANDARDIZE SUSTAINSET IN ORDER SHINESORT

Review, sort, select and remove unnecessary things in the workplace

Regularly clean, wipe everything that causes dirt, stains in the workplace

Practice, create self-discipline habits, maintain order and manners and also needs to strictly follow

regulations at work.

Organize and rearrange items according to easy-to-find, easy-to-see, easy-to-grab, easy-to-return criteria. Everything needs to be put in the

right place to be convenient when it is neededContinue to uphold the 3S standards above and

implement them on an ongoing basis

5S IN WORKING ENVIRONMENT

The project 5S is organized to ensure that the system of records and documents is “Standardize – Sort – Set in order - Sustain – Self-discripline,” stored scientifically, minimized as much as possible search time, and avoided waste papers that affect the environment.

Implementing 5S at Baoviet has helped create a scientific, clean, and convenient environment for work and contributed to changing the way of thinking, forming disciplined working habits, and initiating creativity.

Baoviet also launched the contest “Best Working Corner 2020” to continue maintaining a sense of responsibility for environmental protection and encouraging a good habit in the workplace. The competition attracted hundreds of beautiful photos and awarded 30 best working corners.

With the implementation of the project 5S, Baoviet Holdings has been certified to international standards such as ISO 9001:2008 – quality management system and ISO 27001:2005 – safety information management system certification to establish an information technology infrastructure that operates safely, efficiently and optimizes operation processes into integration.


ENVIROMENTAL COMPLIANCE

GRI

307

Raising GO

AWARENESS

PLANNED TREES2,500

TON OF CO2/YEAR151.2WILL ABSORB

“Planting trees to cause forests is a necessary and urgent activity. With the planting of the first 2,500 indigenous timber trees in Phong Dien Nature Reserve, Baoviet wishes to join hands to contribute and protect people’s peaceful lives against natural disasters and floods, sowing green seeds for life - also fulfilling the mission of safeguarding Baoviet’s future”.

Mrs. Thân Hiền AnhChairman of the Board of

Members of Baoviet Life Corporation

Responding to the call of Prime Minister Nguyen Xuan Phuc to “Plant 1 billion trees for Viet Nam”, Baoviet launched the campaign “Vietnam Green Journey” to spread green lifestyle and encourage action to protect the environment. Accordingly, in Thua Thien Hue, Baoviet Life will plant the first 2,500 native trees on 5ha of land at Phong Dien nature reserve park.

This campaign has attracted more than 1,000 employees, consultants of Baoviet Life across 63 provinces and cities across the country to participate. The program donated 2,500 native forest trees to the Phong Dien Nature Reserve Management Board and communicate the above message to the community. At the same time, the Youth Union of Baoviet Holdings directly awarded five scholarships to students overcoming difficulties in Soc Son district, Hanoi. In addition, the delegates and the Youth Union attended the program to plant 530 trees, contributing to improving the green-clean-beautiful environment.

This activity is to celebrate the 90th anniversary of the establishment of the Vietnamese Communist Youth Union launched by the Prime Minister; Realizing Baoviet Holdings sustainable development goals.

The campaign “Vietnam Green Journey” demonstrates Baoviet’s long-term commitment to contribute to sustainable development activities, raise a voice to the community for a green lifestyle and environmental protection.

THE CAMPAIGN “VIETNAM GREEN JOURNEY” represents Baoviet’s aspiration and long-term commitment

to sustainable development activities, raising a call to the community for a green lifestyle,

protect the living environment, for a better and healthy environment

for future generations.

GO GREEN FOR OUR BETTER FUTURE



307

COMMUNICATING EFFICIENT ENERGY USING

EARTH HOUR

SAVE ENERGY

#WITHBAOVIET SAVE CLEAN AND SUSTAINABLE ENERGY

PROTECT OUR PLANET

In order to raise employees’ awareness about efficient energy using, Baoviet has promoted energy saving campaigns throughout the organization with posters, e-newsletters, internal bulletins.

With the message

to change the perception and habits of employees in the use of energy sources.

“SMALL HABITS, BIGGER EFFECTS”

In addition, Baoviet has focused on applying modern information technology such as video conferencing, teleconferencing or video calling to hold meetings nationwide in order to minimize travel time and the frequency of using transportations: airplanes, trains, therefore, contributing to reduce CO2 emissions into the environment.

The information exchanging system (Lotus Notes System) has also been upgraded and expanded from the Group to subsidiaries and branches nationwide in the field of life, non-life insurance, which has contributed minimizing the amount of printing papers, improve labor efficiency and support online working from home.

Monthly, Baoviet also publishes e-newsletters and electronic magazines, thereby reducing 30% of printing newsletters and paper journals to contribute to environmental protection.

“Light off future on” is the message from Baoviet to communicate in the system in response to the Earth Hour program. We understand that environmental protection needs the cooperation of the whole community and sustainable development is the responsibility of the whole society, not just one individual or organization. Baoviet participants commitment:

Do not hunt, keep, or use illegal wildlife products;1.

Limit single-use plastic;2.

Turn off electrical appliances from 20:30 to 21:30.3.


In 2020, in the context of the world economy being shaken by the COVID-19 pandemic, Vietnam has emerged as a proud “bright spot” with effective infection prevention measures on a national scale. bringing the virus under control, ensure social life and economic development.

GRI

400HUMAN RESOURCES

COMMUNITY

GRI

400

GRI

400

In the digital age, finding ideas and policies arouses the potential, creativity and dynamism of businesses and people, towards building a dynamic, strong, prosperous and prosperous society becomes an urgent need - The key to build a sustainable future.

Baoviet is well aware of its role not only as an economic leader but also as a pioneer in realizing the Sustainable Development Strategy with actions in business decision making, community development, products and services development for the safety and health of people, focusing on people-center to ensure peace and sustainable community development.

STANDARDSSOCIAL

GRI 401 Employment

GRI 413 Local communities

GRI 403 Occupation health and safety

GRI 416 Customer health and safety

GRI 404 Training and education

GRI 419 Socioeconomic compliance

GRI 405 Diversity and equal opportunity

G4 FS7 Products and services designed to deliver social benefits

GRI 408 Child laborGRI 409 Forced and compulsory labor

212 213Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION SOCIAL STANDARDS

GRI

401

EMPLOYMENT

SCOPE OF REPORT

Labor force in Baoviet Labor recruitment Labor turnover rate

MANAGEMENT APPROACH ASSESSMENTWith these management methods, Baoviet has built a suitable labor workforce to our development objectives, ensuring uniform and stable quality.

Baoviet has been and will continue to improve the welfare and training policies so that employees can feel secured, long-term working for the business, and improve their professional qualifications to hold Baoviet key position in the future.

MATERIALITY TOPICFor many years, Baoviet has always appreciated and realized that the values created by members all contribute to success, regardless of position, age, gender, education level, social status, personality, lifestyle, thinking process, work experience, ethnic origin ... That philosophy is the foundation for Baoviet to build a dynamic, fair, and individual working environment. All have the opportunity to work and train towards success and career development in the Group.

Create opportunities for young candidates and new graduates to work in

a dynamic and challenging environment

Create job opportunities in the local and labor market

Create training courses for employees to become a

professional and high quality workforce

Build a sustainable value chain

Relocation and rotate work position to improve the capacity, experience and quality of the workforce

Maintain equal and fair working opportunities

HUMAN RESOURCE ACTIVITIES

1.6.

3.4.

2.5.

MANAGEMENT APPROACHPURPOSE

MANAGEMENT APPROACH

Baoviet focuses on managing human resources to create a professional working environment with a strong workforce full of enthusiasm, motivation, passion for the job which contributes to a prosperity Baoviet.

Baoviet effectively records and manages work by evaluate the individual’s performance to ensure business efficiency by equipping every individual in the organization’s capacity and tools to help know clearly about the organization’s expectations, create conditions for individuals to function effectively, promote their capabilities and potentials and contribute to the success of the organization.

Human resource management through the intranet hr.baoviet.com.vn system helps reduce the load of workload for managers, minimizes administrative tasks, helps to transparent the benefits of each employee salary, bonus, efficiency, work goals; At the same time, Baoviet regularly updates and implements human resource policies in accordance with labor law regulations and builds and innovates internal personnel policies to ensure maximum benefits for employees and maintain attracting qualified human resources.

HUMAN RESOURCES MANAGEMENT STRATEGY

Build a rich corporate culture1.

Improve human resource quality2.

Appreciate the contribution value of employees3.

Build a positive working environment4.


EMPLOYMENTGRI

401

LABOR FORCE IN BAOVIET

In 2020, the total number of employees of Baoviet is 6,519 people. Regarding the labor structure in 2020 by gender is quite equal: The proportion of male workers accounts for 52.5%, female workers 47.5%.

In terms of age structure, the proportion of workers under 30 years old accounts for 23.5%, middle-aged workers from 30 to under 50 years old make up 67.2% and workers aged 50 and over with working seniority longtime partnerships in Baoviet accounted for 9.3%. Regarding ethnic groups, workers from the Kinh majority account for 6,378 people (97.8%) and workers from ethnic minorities are 140 people (accounting for 2.1%), an increase of 80 people compared to 2019.

Regarding labor qualifications, with the goal of building and maintaining a contingent of cadres with high professional qualifications and structure, by 2020, Baoviet’s employees will continue to maintain a proportion of qualified workers with college and postgraduate at a high level. Workers with university degrees accounted for the majority with 81.9%, postgraduate degrees accounted for 8.8% and workers with university degrees only accounted for 9.3% (down 0.4% compared to the previous year).

In terms of managerial staff structure, in 2020, the total number of management staff of Baoviet is 592 people, accounting for 9.1% (up 0.1% compared to 2019), employees are 5,927 people, accounting for 91%. In terms of management structure, senior managers are 48 people, accounting for 0.7% and middle-level managers are 544 people, accounting for 8.3%.

Labor structure by years

1,000

2,000

4,000

6,000

5,000

3,000

7,000

2017201620152014201320122011 2018 2019 2020

6,51

9

6,57

4

6,36

6

6,03

3

5,61

8

5,46

7

5,36

45,89

9

5,86

9

5,61

9

IN 2020, THE TOTAL NUMBER OF EMPLOYEES OF BAOVIET IS

PEOPLE

Labor structure by criterias

LABOUR STRUCTURE – BY CRITERIA NUMBER OF EMPLOYEESPROPORTION OUT OF BAOVIET’S TOTAL NUMBER OF EMPLOYEES

By Elthnic

Kinh 6,378 97.8%

Ethnic minority 140 2.1%

By nationality

Vietnamese 6,517 99.07%

Foreigners 2 0.03%

By education level

Master degree 571 8.8%

Bachelor degree 5,342 81.9%

College graduate 224 3.4%

Others 382 5.9%

By gender

Male 3,421 52.5%

Female 3,098 47.5%

By age

Under 30 years old 1,533 23.5%

30 to 50 years old 4,381 67.2%

Over 50 years old 605 9.3%

By region

North 3,348 51.4%

Central 1,807 27.7%

South 1,364 20.9%

By seniority

Senior-level managers 48 0.8%

Middle-level managers 544 8.3%

Employees 5,927 90.9%

Regarding the region, the number of workers in the North accounted for the majority with the number of 3,348 people, equivalent to 51.4%, in the Central region there were 1,807 people, equivalent to 27.7%, and the number of workers in the South was 1,364 people, accounting for 20.9%.%.

Labor structure by seniority Senior-level managers Middle-level managers Employees

8%1%

91%

Labor structure by gender Male Female

52%48%

Labor structure by age Under 30 30-50 Over 50

24%9%

67%

Labor structure by education level Master degree Bachelor degree College graduate Others

82%

9%3%6%


EMPLOYMENTGRI

401

513CANDIDATES

WERE RECRUITED IN 2020

NEW RECRUITMENT AND TURNOVER RATE ARE GUARANTEED BY BAOVIET HOLDINGS INTERNAL AUDIT DEPARTMENT

LABOR RECRUITMENT

In 2020, the monthly salary paid for newly recruited employees (in both male and female) is always ensured to compliance with the provisions of the law on regional minimum wages. The key areas in the reporting period are classified by areas: Hanoi, Nghe An, Ho Chi Minh city.

Among the top 50 recruitment brands voted by Anphabe, Baoviet still focuses on intensive investment in many areas of human resource management, including recruitment policies to attract young workforce at high level of expertise, dynamic, creative, enthusiastic, and equipped with basic and advanced information technology knowledge to suit business requirements in the context of technology application in management activities corporate and business finance and insurance.

LABOR TURNOVER RATEIn 2020, the business market is undergoing many changes leading to many challenges for businesses in maintaining existing teams. Employees have many opportunities to choose a better job, in accordance with their career orientation and their own changing working environment. However, with policies aimed at investing in depth, developing and maintaining human resources, in 2020, Baoviet had a significant decrease in labor volatility compared to the previous year, specifically: the total number of employees quitting at Baovietnam in 2020 is 533 people (decreasing by 253 compared to 2019), equivalent to the severance rate of 8.2% (down 3.8% compared to 2019). Regarding the structure of laid-off employees in 2020, the severance rate of men is 9.2%, of women is 7.6%; Regarding the age group, the severance rate of workers over 50 years old (mainly retired) accounts for 3.5%, young workers (under 30 years old) account for 19.2% and workers aged 30-50 years only accounting for 5.4%. Regarding geographical areas, units in the North and the South had a high rate of resignation compared to units in the Central, specifically, the severance rates in the North, Central and South were respectively 8.8%, 4.6% and 12.8

In 2020, Baoviet recruited 513 people, including the majority of candidates from Baoviet Insurance Corporation, Baoviet Life Corporation and Baoviet Investment Company due to increased service providers. requires more labor than previous years.

Out of the total number of recruited candidates, Male candidates account for 61%, Female candidates account for 39%; Young candidates under 30 years old are recruited by Baoviet accounting for the highest proportion of 68%, followed by candidates aged from 30 to 50 years old accounting for 31% and candidates over 50 years old is 1%. In terms of regions, units in the North employ the most at 52%, followed by 28% in the South and 19% in the Central.Labor recruitment by subsidiaries

50

100

100

200

200

400

250

700

600

500

150

300

BVInvest

North South

BVSC

Female Central

BVF

Male

BVGI

>50

BVLIFE

30T - 50

BVH

<30

87

30

-

140

232

24

Labor recruitment by area North Central South

Labor recruitment By Age Under 30 30 - 50 Over 50

2020 Resignation 2020 Recruitment

Labor recruitment by gender of female BVH BVLIFE BVGI BVF BVSC BVInvest

Recruitment criteriaAge Gender Area

Toal<30 30-50 >50 Male Female North Central South

2020 RecruitmentQuantity (person) 349 161 3 314 199 268 100 145 513

Ratio (%) 5.4% 2.5% 0.0% 4.8% 3.1% 4.1% 1.5% 2.2% 7.9%

2019 RecruitmentQuantity (person) 739 234 3 418 558 526 136 314 976

Ratio (%) 11.3% 3.6% 0.0% 6.4% 8.6% 8.1% 2.1% 4.8% 15.0%

Turnover rateAge Gender Area

Total<30 30-50 >50 Male Female North Central South

2020 ResignationQuantity (person) 295 235 21 316 237 295 84 174 533

Ratio (%) 19.2% 5.4% 3.5% 9.2% 7.6% 8.8% 4.6% 12.8% 8.2%

2019 ResignationQuantity (person) 451 260 75 425 361 436 177 173 786

Ratio (%) 25.4% 6.2% 12.1% 13.5% 10.5% 12.2% 12.0% 11.3% 12%

213

295

349

235

161

316

314

237

199

295

268

8410

0

174

145

50%

35%

35%

31%

20%3%

39%

0%7%

64%

35%

1%


349YOUNG CANDIDATES WERE RECRUITED

IN 2020

GRI

403

OCCUPATIONAL HEALTH AND SAFETY

SCOPE OF REPORT

Healthcare program for employees and their families

Maternity leave policy for female employees and male employees with spouse taking

maternity leave

Assigning employees participating in Baoviet health and safety network

MATERIALITY TOPIC

Baoviet understands that the right to a safe and healthy workplace is recognized as a human right and is mentioned in international documents.

On the other hand, the health and safety of employees can be impacted to to their work as well as to the business they are working for.

• All employees perform their work under the control of Baoviet

• All employees work at the workplace under the control of Baoviet


In order for businesses to be successful and reach their estination, it should be based on a workforce with determination and consensus for common goals. Therefore, Baoviet always appreciates the contribution and dedication of the staff to the overall success of Baoviet, while ensuring the rights and conditions of labor safety and health for employees during the time. working time at the enterprise.

MANAGEMENT APPROACH

Baoviet always strives to bring about a fair, friendly, professional, safe and healthy working environment for employees, to maintain the workforce and strengthen the commitment and commitment to the public. work of each officer and employee. Occupational health and safety management systems include policy making, analysis, control of safety and health risks, provision of training, documenting and investigation of safety cases and Baoviet’s health has been maintained and continued to develop and improve over the years to ensure the health, safety and financial safety for staff.

MANAGEMENT APPROACH ASSESSMENTWith the management methods set out, in 2020, Baoviet recorded no cases of workers’ safety and health violations


Baoviet always strives to improve the welfare policy system, to provide an equal, friendly and professional working environment, to ensure labor safety and financial stability during and after their dedication time to the company. Accordingly, in addition to being fully participating in compulsory insurances, each Baoviet employee is also equipped with enterprise insurance packages along with their pensions, ensure a financial independence for employees, and at the same time, employees and their families are also protected against risks in life and in the working process. Insurance packages each employee received:

In 2020, Baoviet continued to show an interest in the health of our employees through conducting periodic health examinations for employees at reputable medical facilities and high-service quality.

With the strength of products to protect customers against health risks, Baoviet regularly organizes consultancy programs with the participation of experts and doctors for internal customers and staffs. Members are expected to increase their knowledge on health protection and care, especially for female workers.

Healthcare insurance card

Health insurance for family

Cancer Insurance (K-Care)

“An nghiep thanh cong”

“An phat tron doi”

“Huu tri vung nghiep”

Social welfare insurance

Healthcare Insurance

Unemployment insurance

Occupational accident insurance

OCCUPATIONAL HEALTH AND SAFETYGRI

403

HEALTHCARE PROGRAM FOR EMPLOYEES AND THEIR FAMILIES

VND/PERSON

FOR RETIRED OFFICIALS, IN ADDITION TO ORGANIZING VISITS, GIVING GIFTS

ON THE OCCASION OF INTERNATIONAL ELDERLY PEOPLE, LUNAR NEW YEAR, BAOVIET MAINTAINED ANNUAL

COMBINED HUMAN INSURANCE WITH A LIABILITY OF 20,000,000

NON-LIFE INSURANCE

LIFE INSURANCE

COMPULSORY INSURANCE


HEALTHY WORKPLACE ORIENTATION DEPLOYMENT PLAN

Accordingly, in recent years, Baoviet has actively maintained and organized the following activities:

STRESS MANAGEMENT

• Organize seminars on stress and task management, coffee break exercising, internal communication content for healthy lifestyle, etc. to help employees deal with stress at work and in daily life.

• Organize entertainment room with instruments for employee stress relief activities after working hours.

SMOKE-FREE WORKPLACE

• Smoking by employees or business partners is prohibited anywhere within buildings. The building smoke-free policy is communicated to employees through occupational safety and health training courses and regular checkups by the building security staffs.

FIRST-AID, FIREFIGHTING AND

PREVENTION SKILLS

• First-aid skill training course and Firefighting and prevention course are organized annually. The availability of fire protection equipment has been registered, provided and located at every floor of the building. These courses not only enhanced employees’ first-aid knowledge, but also provided assurance to customers’ safety.

ENVIRONMENT AND SAFETY FACILITY

ASSESSMENT

• Local government agencies will conduct safety inspections of facilities at the building annually. During their visits, they offered advices to the employer regarding employees’ safety, as well as procedures that can be taken to improve the current workplace and equipment layout.

HEALTH, NUTRITION AND EXERCISE

• Provide annual health checkups and optional in-depth checkups for employees with consultation session with physicians after health checkups to analyze abnormal health findings for all employees.

• Release weekly posts, e-newsletters about Smart diet, Healthy lifestyle with advices on low-sugar, low-salt and important notes on care for chronic illnesses are being disseminated.

• Organize rooms for various sport clubs including yoga, aerobics, and gym during lunch break and after working hours. Tennis, football and hiking events are also organized on a regular basis.

With the desire of creating a safe and healthy workplace, Baoviet has implement the Healthy workplace orientation deployment plan including 4 steps: Plan, Prepare, Act and Control to proceed and maintain the activities on annual basis.

ISO 45001

CERTIFIED BY ISO 45001 OCCUPATIONAL HEALTH

AND SAFETY SYSTEM

1. 2. 3. 3.

PLAN

Establish Occupational

Safety and Health

Devise annual health

promotion

Implement Health and Safety Code of Conduct

PREPARE

Assess the working

environment

Employee safety and

health training

Health promotion

activities/seminars

Assessment by on-site

physicians

ACTION

Employee health

management

Maternity protection

program

Abnomal workload-

induced diseas prevention program

CHECK

Monitoring the operating

environment

Health check-up program

Investigation, resolution, and statistical analysis of occupational hazards and

accidents

Maintenance of safety and

health records

HEALTHY WORKPLACE


403


100%FACILITY IMPROVEMENT RATE AFTER INTERNAL/

EXTERNAL AUDIT

0OCCUPATIONAL INCIDENT

OF HIGH SEVERITY (DEATH/DISABILITY)


403

MATERNITY LEAVE POLICY FOR FEMALE EMPLOYEES AND MALE EMPLOYEES WITH SPOUSE TAKING MATERNITY LEAVE

ASSIGNING EMPLOYEES PARTICIPATING IN BAOVIET HEALTHCARE AND SAFETY NETWORK

In addition, in order to create maximum conditions for employees to have time to take care of their children, after the end of maternity and commuting leave, female workers were provided with conditions to shorten working time for 1 hour / day compared to other workers until the child is full 12 months old. Female employees can register to work late or leave early compared to the standard working time prescribed by Baoviet and ensure that the total number of late hours and / or early dismissal does not exceed 1 hour in accordance with the regulations of internal rules and labor law.

Baoviet applied maternity leave policies for employees (both men and women) to comply with the labor law and to apply the policy of reward, welfare, health insurance and other types of insurance. At the same time, employees were still considered for annual emulation, consideration for periodic wage increases and performance evaluation as a basis for considering annual work performance rewards and related welfare regimes.

In 2020, the actual number of employees taking maternity leave was 231 people; in which, male employees whose wives give birth were 32 maternity leave, while female employees having maternity leave was 199 people. By the end of December 31, 2020, there were 205 employees returning to work after maternity leave, reaching 89%; in which, male workers returned to work 100% and female workers returned to work was 173, reaching 87%. The remaining female employees would return to work in 2020 after the end of the maternity leave regime. Baoviet commits and always ensures the full employment for the maternity leave workers to return to work at the old position after the end of the leave.

Pursuant to Article 74 of the 2015 Law on Occupational Safety and Health, each functional board in Baoviet needs to have at least 1 part-time officer in charge of safety and sanitation. Safety and Hygiene officer (WHSO) is concurrently responsible for occupational safety and health, fire and explosion prevention in the functional board WHSOs are direct workers, knowledgeable about occupational safety and sanitation, voluntary and exemplary in the observance of labor safety and hygiene regulations.

20

40

100

60

120

140

80

BVIBVSCBVFBVLIFEBVGIBVH

Labour take maternity leave by gender Male Female

107 1174-

25

7

119

11

30

-

199FEMALE EMPLOYEES

TAKE MATERNITY LEAVE

32MALE EMPLOYEES TAKE MATERNITY

LEAVE

In addition to ensuring that employees are assured of rest and recuperation after birth and to have the necessary health to continue working as required by the organization, after the end of maternity leave, the main Maternity leave policies also help employees feel secure financially and create the best conditions to support employees to care for children.

Develop a plan for occupational safety and health of the year;1.

Arrange people to work in labor safety;2.

Establish a network of safety and hygiene;3.

Sign a contract of medical examination and treatment facility to take care of workers’ health;

Organize training on occupational safety for employers and employees;

Implement the regime of annual report on occupational safety and health, periodic report on the situation of accidents in the first 6 months and annually to the labor state management agency in accordance with regulations.

4.

5.

6.

In 2020, Baoviet has implemented occupational safety and sanitation to ensure compliance with the provisions of law, ensuring efficiency, bringing peace of mind and safety for employees. Works implemented during the year include:


SCOPE OF REPORT

Digital human resource Human resources relocation and rotation

MATERIALITY TOPICHuman resource development and training are important activities, contributing to ensuring the existence and development of Baoviet, helping Baoviet human resources to adapt to environmental changes and meet the requirements of implementing the strategic goals of the organization.

In the context the Industrial Revolution 4.0 which has a great impact in economy and society, Baoviet’s human resource training and development have made remarkable changes, catching up with the latest training trends. For example, Baoviet uses online tools in tandem with face-to-face training, such as e-learning portal, workplace/workchat, live streaming software, etc.; increases online training courses; and uses up-to-date software programs in training data management.

GRI

404

TRAINING AND EDUCATION MANAGEMENT APPROACH

MANAGEMENT PURPOSE

The overall objective of training and developing human resources is to manage the human resources effectively and improve labor productivity in the enterprise; by helping employee better understand their jobs, be more self-aware and motivated in performing their tasks, as well as improve their adaptability to changes in the economy.

MANAGEMENT APPROACH

Baoviet manages and enhances the effectiveness of training on Capacity dictionary system; Capacity framework; General learning maps; Functional learning maps. The training needs, the capacity to be trained, the compulsory professional knowledge are determined in a specific and accurate way based on the specific job position of each officer. Therefore, each Baoviet employee will have a detailed training schedule in order to fully develop their competency.

MANAGEMENT APPROACH ASSESSMENTIn 2020, Baoviet has implemented training programs in General learning map and the Functional learning map. In addition to normal face-to-face training programs, Baoviet has increased online training programs to optimize training effectiveness. Besides, Baoviet staff are also always given favorable conditions to participate in both internal and external training programs and to encourage learning culture incessantly. The training programs in 2020 are highly appreciated by trainees for the content, organization and practical applicability.

AVERAGE NUMBER OF TRAINING HOURS PER EMPLOYEE GUARANTEED BY BAOVIET HOLDINGS INTERNAL AUDIT DEPARTMENT

The average number of training hours per employee in 2020 is aggregated from the figures of the Parent company and its subsidiaries according to the criteria: gender and rank. The average number of training hours per employee is determined by: Total number of training hours for staff / Number of employees. In which, the average training hours per employee in 2020 is 53.1 hours, increased 131.8% compared to the average training hours in 2019.


TRAINING AND EDUCATIONGRI

404

DIGITAL HUMAN RESOURCES TRAINING

In the strategic project for the period of 2021-2025, Baoviet determines digital human resources training is one of the four basic solutions to help Baoviet successfully implement the digital transformation strategy. In fact, in 2020, the training and development of human resources in Baoviet has initially built a foundation for improving digital technology skills at work.

Training courses about digital transformation are widely trained for Baoviet staff in 2020 include: Instructions for using Microsoft Power BI (Business Intelligence), Online teaching skills, Instructions for using work management software BVOffice, etc.

In particular, the “Instructions for using Microsoft Power BI” course helps staff who regularly manipulate data have data analysis tools, and present reports more effectively in a good visualization. The “Online teaching skills” program provides the skills needed for the internal trainers in charge of online training. The “Instructions for using work management software BVOffice” course helps staff quickly access and use BVOffice software proficiently in planning, submitting, approving, arranging and reporting the progress of work. In addition, courses about using of applications and software for each job position are regularly organized to improve the digital capacity of the staff.

A SOLUTION FOR BAOVIET’S DIGITAL TRANSFORMATION STRATEGY

In the Fourth Industrial Revolution with the powerful development of technology, human resources training and development has become increasingly important, playing a decisive role in improving the quality of human resources, increasing labor productivity, and creating new added-value.

TRAINING COURSES OF DIGITAL TRANSFORMATION1.

Specifically, highly applicable training contents are selected for digitization, converted into attractive online lectures, with modern simulation images and movements. Baoviet also applies gamification to increase the vividness of lectures. The selected training programs

include programs with updated content and international standard programs,... Besides, special attention is also being paid to the application of technology in training management activities. Baoviet continues to implement online training programs on the training portal (Elearn.baoviet.com.vn) with a modern and user-friendly interface. Communication channels in online courses are diversified, from the maximum use of internal social networking’s features such as Workplace/Workchat to external software programs such as Zoom, Meetz,... Data of training activities is managed by Microsoft Power BI software which helps managers to be more convenient in reporting and evaluating training activities. In addition, the online training and teaching activities are fully equipped with devices such as computers, microphones, cameras, backdrop, lights,… for recording and live-streaming lectures; which helps trainers easily prepare training materials and transfer knowledge in online courses.

Baoviet continues to strongly apply digital technology in training and training management activities. In the context of 2020 with unusual socio-economic changes, as well as the effects of the Covid-19 pandemic, classroom training activities are significantly limited. However, Baoviet has immediately promoted activities using digital technology in training, including: Digitizing training materials, applying technology to training management activities, equipping online trainers with modern devices.

TRAINING COURSES OF APPLYING DIGITAL TECHNOLOGY2.



404

DIGITAL HUMAN RESOURCES TRAINING – A SOLUTION FOR BAOVIET’S DIGITAL TRANSFORMATION STRATEGYThe above changes have brought positive results in training, in terms of both quality and quantity. Regarding the quality of training, online courses in modern learning platforms make learning activities more attractive and lively as well as encouraging employees to take initiative in learning and personal capacity building. Regarding the training time, online training helps the number of courses as well as the number of trainees increase significantly, because online courses are not limited in time, space and support staff resources. Accordingly, in 2020, Baoviet has trained 6.506 staff with 11.447 training sessions. The total number of training hours is 183.649 hours of training, of which the total number of training hours under the General Learning Map is 75.125 hours, the number of hours of training outside the General Learning Map is 108.524 hours of training, this is the number of training hours for professional programs. The average number of hours of training per employee in a year is 28.2 hours of training, of which the average number of hours for male staff is 34.5 hours, for female staff is 21.3 hours. On average, the number of training hours by title, the number of training hours of senior managers is 35.5 hours, the middle-level staff is 82.1 hours, the staff is 23.2 hours.

These positive advances in human resource training and development have helped Baoviet staff acquire the necessary knowledge and skills for digital transformation activities; in order to improve labor productivity and complete business tasks in 2020.

Average number of training hours per employees in 2020

CriteriaGender Title

TotalMale Female Senior-level

managerMiddle-level

manager Employees

Training hours 224,313 121,271 2,379 79,843 263,362 345,584

Training under the General Learning map 60,266 41,567 103 12,041 89,689 101,833

Functional traings 164,047 79,704 2,276 67,802 173,673 243,751

Training sessions 7,946 3,503 51 2,020 9,378 11,449

Training under the General Learning map 1,717 1,315 5 280 2,747 3,032

Functional traings 6,229 2,188 46 1,740 6,631 8,417

Number of employees at Dec 31st 3,415 3,091 45 541 5,920 6,506

Average number of training hours per employees per year (hours/person/year) 65.7 39.2 52.9 147.6 44.5 53.1

Total training hours by gender in 2017-2020

Male Female

2020201920182017

30.1

20.3 22.1

65.7

23

13.710.5

39.2

Total training hours by titles in 2017-2020

Senior managers Middle managers Employees

2020201920182017

Average training hours in 2017-2020

2017

104.

9

63.7

20.3

2020

52.9

147.

6

44.5

2019

15

53.5

12.6

2018

35.6 49

.7

14

17.2 16

65.7

26.8

10

Training sessions under the General learning map Training sessions under the Functional learning map

20

Number of training sessions in 2017-2020

30

2020

40

2019

50

2018

60

2017

70

7,091

5,519

8,4179,783

1,661 1,177

3,032

1,506

39.265.7TRAINING HOURS FOR MALE EMPLOYEES

TRAINING HOURS FOR FEMALE EMPLOYEES

8,4173,032TRAINING SESSIONS OF GENERAL LEARNING MAP

TRAINING SESSIONS OF PROFESSIONAL LEARNING MAP

65.7AVERAGE TRAINING HOURS PER EMPLOYEE PER YEAR

44.5147.6TRAINING HOURS FOR MIDDLE-LEVEL EMPLOYEES

52.9TRAINING HOURS FOR SENIOR-LEVEL EMPLOYEES

TRAINING HOURS FOR EMPLOYEES

6,506TRAINED EMPLOYEES

11,449TRAINING SESSIONS

345,584 TRAINING HOURS

53.1TRAINING HOURS/EMPLOYEE/YEAR



404

HUMAN RESOURCES RELOCATION AND ROTATION

To meet business requirements, Baoviet focused on developing human resources by relocating, rotating employees to different positions within Holdings, within a subsidiary, between Holdings and subsidiaries in accordance with the Regulation on rotation and transfer appointed by the Board of Directors.

In 2020, Baoviet relocated and rotated 445 employees. The proportion of relocated employees aged from 30 to 50 years old is highest (230 employees, accounting for 52%), then employees under 30 years old (184 employees, accounting for 41%), the lowest proportion is employees over 50 years old (31 employees, or 7%). Out of total relocated employees, the number of male and female ones is 290 and 155 employees, making up 65% and 35%, respectively. Geographically, staff in the northern units was

relocated the most with 137 people, accounting for 31%, the remaining 31% and 38% of relocated staff was in the central and southern units.

Each relocated and rotated employee is able to adapt, integrate quickly, actively participate in business activities and contribute to the overall success in 2020.

Under 30 Over 5030 - 50

47

497

15

65

1.56

8

102

10

146

7

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Labor structure by age

Position relocated Position appointed Salary adjusted

North SouthCentral

95

1,09

8

91

15

626

32

12

432

31

200

400

600

800

1,000

1,200

Labor structure by area


Male Female

85

1,11

0

109

37

1,04

6

45

200

400

600

800

1,000

1,200

Labor structure by gender


<30 >50 Male Female North Central South Total30-50

445

169

4719 1210

85 104

6537

138

65

119

95

15 25 12 2550

150

100

250

200

350

300

450

400

500

Labor structure of relocation

and appointed

Position relocated Position appointed


GRI

405

DIVERSITY AND EQUAL OPPORTUNITY

MANAGEMENT APPROACH ASSESSMENTIn 2020, Baoviet has maintained a reasonable ratio between managers and employees, ensuring the optimum in corporate governance and administration. In the management and administration apparatus of Baoviet, it creates opportunities and encourages female officials to participate and hold management positions at the units.

In order to meet the requirements of the company in the new context, Baoviet continued to maintain a reasonable ratio of the structure of management officers under the Board of Directors, Board of Members (Board of Directors / Board of Members) and other committees advisory board to assist the Board of Directors / Board Members. In 2020, the total number of management officers of Baoviet is 588, accounting for 9.02% of the total number of employees.

MATERIALITY TOPIC

During the process of more than 50 years of operation and development, Baoviet has always appreciated the contributions and dedication of the staff in general and the female cadres in particular for the overall success of Baoviet. Therefore, Baoviet strives to implement competitive salary, bonus and welfare policies to ensure fair treatment for employees, ensure equal opportunities in training, development and promotion activities.

MANAGEMENT APPROACHMANAGEMENT PURPOSE MANAGEMENT APPROACH

Baoviet believes that when businesses actively promote diversity and equality in the workplace, it will bring great benefits to both organizations and workers such as access to potential human resources and more diversity or ability to retain talents and quality human resources that the organization has invested in training. Since then, the working environment in businesses that maintain cultural equality and diversity will promote social stability and support further economic development.

To manage equity in the enterprise, comparative activity between the diversity of employees in general and the diversity of management levels also provides a fairly clear view. In addition, Baoviet is also active in reviewing its activities and policies to promote diversity, eliminate gender bias and support equal opportunities for labor components. These principles apply publicly and publicly in recruitment activities, promotion decisions and remuneration policies. Equality of remuneration is also an important factor for Baoviet to apply to retain qualified employees.

SCOPE OF REPORTEmployees and leveled management structure

Performance-based salary scheme and management system

Equal treatment for employees

Discrimination incidents and corrective actions taken

Human resources play a very important role in completing the mission and strategic objectives of Baoviet.

EMPLOYEES AND LEVELED MANAGEMENT STRUCTURE

5,927EMPLOYEES

Management structrure by gender

Management structrure by age

Senior-level management Middle-level management Employee

Senior-level management Middle-level management Employee

5

10

37

32

148

118

398

426

Female

Over 50

Male

30-50

Under 30

0

0

500

500

1,000

1,000

1,500

1,500

2,500

2,500

3,500

3,500 4,500

2.000

2,000

3,000

3,000

4,000

4,000 5,000

2,893

2.893

3.034

3,921

1,531

473


588SENIOR MANAGERS

DIVERSITY AND EQUAL OPPORTUNITYGRI

405

EQUAL TREATMENT FOR EMPLOYEES PERFORMANCE-BASED SALARY SCHEME AND MANAGEMENT SYSTEMWORKING PERFORMANCE-BASED MANAGEMENT POLICY

Equal treatment for employees plays an important role in establishing an ideal working environment, giving them motivation to increase their capacity and commitment to Baoviet.

Baoviet’s effective management policy has been maintained since 2009 so as to establish, control, evaluate the level of accomplishing objectives, classifying work efficiency of each individual, serving as a basis for viewing consider adjusting annual salary and performance bonuses for individual employees based on their achievements, the level of contribution to the organization’s success; contributing to creating a fair and competitive income mechanism in Baoviet’s salary policy.

Baoviet’s human resources policy aims for the following goals:

In 2020, individuals who were proposed to be classified as Class 1 (Excellent) had to present their reports of achievements in the previous year. These achievements must have a level of influence and benefit on the the comapany and be recognized by the majority of individuals. In case the number of votes for more than 50% of the Board members and individuals was reached, the Board of Directors would approve the General Director of the Group to approve Class 1 - Excellent, the Director of the Center must present the report and protect the achievements of those individuals before the Council. These achievements

had to have the level of influence and network benefits in the Block / Center scale and were recognized by the majority of individuals and collectives in the Division / Block. In case the number of votes for more than 50% of the Board members and individuals was reached, the Board of Directors approved Class 2 – Good Performance. The remaining individuals were considered and rated Class 3 – Completed and Class 4 - Not completed depending on the level of accomplishment of the work goal in the year and the expression of attitudes and behaviors of individuals.

BAOVIET’S HUMAN RESOURCES POLICY

AIMS FOR THE FOLLOWING GOALS:

No discrimination based on gender, ethnic group, skin colour, social class, marital status, religion, health status, or for reasons of establishing, becoming a member, and joining activities of the Trade Union in compliance with the Labour Law.

1.

Fair performance-based salary scheme for employees.2.

Respect and listen to opinions of employees. All employees have the right to give feedbacks on how to build and develop Baoviet.

3.

Every employee has the same opportunity in training, development and advancement.

4.

Baoviet encourages and allows time and expenses for female employees to attend training courses under the general learning map, functional map to enhance knowledge, capability, functional skills, and management skills, with a view to meet work requirements and Baoviet’s sustainable development goal.

In 2020, the number of hours of training of female was 112,271 hours, an average of 39.2 training hours/Female employee/year. In addition, female employees are also received financial support to participate in the preparation for international certification exams for Life Insurance Programs (LOMA), Non-life Insurance (ANZIIF), Accounting-Audit-Fianance Programs (ACCA, CPA, CFA), Project Management (PMP) and a number of international certificates in the field of Information Technology (programming, security, integration, network administration), …

Together with the Trade Union, Baoviet “Commission or Women’s Advancement” plays a significant role in incorporating gender issues in the establishment and implementation of its human resources policy; ensuring female employees ‘full entitlement to the Government’s benefits and other social welfare such as: compulsory social insurance, annual leave, social insurance leave, health care insurance, life insurance, period health check, and corporate culture activities.

Within the organizational structure, Baoviet’s management model always engaged at least one female employee, specifically:

Proportion of female employees 47.5% 3,098 employees

Proportion of newly recruited female employees 40.7% 66 employees

Proportion of female employees holding a high senior management role/Total senior managers

11.9% 05 employees

Proportion of female employees holding a middle senior management role/Total middle managers

27.1% 148 employees

Proportion of female employees/Total manager 39.0% 153 employees

112,271 39.2

THE NUMBER OF HOURS OF TRAINING OF FEMALE IN 2020

HOURS AN AVERAGE OF

TRAINING HOURS/FEMALE EMPLOYEE/YEAR


Baoviet Performance management processComplete work

performance appraisal

Managers collect their employees’ mid-year performance management data. Employees start withself-appraisal

Employees discuss mid-year appraisal with their managers and receive mid-year rating

Managers collect performance management data. Employees start with self-appraisal

Start planning for next year objectives

Employees complete setting goals for the year, and are well

aware of these goals

Employees discuss performance appraisal with their managers and

receive year-end rating

Monitor & manage work performance

Provide training & develop work performance

January February

March

April

Oct

ober

September

August July June

M

ay

November

December

Objectives setting

Revising

Mid-year appraisal

Mid-year appraisal

YOU


405

PERFORMANCE-BASED SALARY SCHEME AND MANAGEMENT SYSTEM

In 2020, in addition to complying with current laws and regulations, Baoviet continuously updated new trends in the market’s remuneration policies to improve the competitive advantage of human resources, to attract and retain high quality labor force easily, to motivate and increase labor productivity.

With the human resource development strategy approved by the Board of Directors, in 2019, Baoviet continued to implement the performance-based income policy, participated in surveys about the market’s wages and salaries to determine pay range, pay rate to its employees corresponding to each job level and performance accomplished, ensuring the internal equity and competition with the other competitors.

In 2020, the total number of employees going through performance appraisal in accordance with Baoviet’s regulations was 3,580 persons, accounting for 96% of the labor force; out of which the number of male employees was 1,718 people equivalent to 48% of total labors, and the number of female employees was 1,862 peoples (52%). In terms of age group, employees aged from 30 to 50 going through appraisal was 1.092 persons, making up 30.5% of the total labors, the figures for the group of employees under 30 and over 50 years old which was 2,229 (equivalent to 62.3%) and 259 people over 50 (equivalent to 7.2%).

The remaining of the total number of employees as of December 31, 2020 of Baoviet were assessed and recorded their achievements in 2020 according to the specific policies of each subsidiary of Baoviet, accordingly with each position and specific job; and be awarded for the specific achievement.

Unit: person

No. Subsidiaries

Ratio of evaluated employees Number of evaluated employees

Total number of employee

Total number of evaluated

employee

Ratio of evaluated

employees

Age Gender

Under 30 30-50 Over 50 Male Female

1 BVH 261 258 99% 25 220 13 155 106

2 BHBV (*) 576 517 90% 83 405 29 289 287

3 BVNT 2,251 2,157 96% 756 1,232 169 1,109 1,142

4 BVF 46 46 100% 8 38 - 24 22

5 BVSC 246 242 98% 50 151 41 113 133

6 BVInvest 360 360 100% 170 183 7 172 188

Total 3,740 3,580 96% 1,092 2,229 259 1,862 1,878

(*) The performance appraisal data of BVGI is calculated at the Corporation Head Office.

Have a minimum working time to meet the requirements of Baoviet

1.Excellent

Be on the list of regular employees at the time of the assessment

2.Great-performance

Have a working plan and being directly approved by the manager

3.Completed

Earned from the salary fund of Baoviet

4.Uncompleted

PERFORMANCE EVALUATION

CRITERIA

RATING CRITERIA

Working performance evaluated employees by gender

Male Female

Working performance evaluated employees by age

Under 30 30 - 50 Over 50

RESULTS OF SALARY ADJUSTMENT IN 2020

Comparison

Salary survey

Policy

Market

BehavioursObjective delivery

EmployeesObjective setting

Performance effectiveness

Job

Organizational analysis

Job description

Job assessment

Fundamental model which forms the basis for Baoviet salary policy

JOB EVALUATE

ANNUAL APPRAISAL

SALARY RANGE

SALARY

52%48%

63%

6%

31%


Salary

Bonus


405

PERFORMANCE-BASED SALARY SCHEME AND MANAGEMENT SYSTEM

Salary and bonuses from Baoviet’s salary fund in 2020 include

• Salary depends on the job/title and allowance;

• Supplementary salary;

• Salary for outstanding annual leave that employees have not used up.

• 13th month salary;

• Performance based bonus.

RESULTS OF SALARY ADJUSTMENT IN 2019

<30 >50 Male Female North Central South30-50

1,11

0

1,04

6

1,09

8

626

200

600

400

1,000

800

1,400

1,200

1,800

1,600

Salary adjustment in 2020

497

146

1,56

8

432

In 2020, Baoviet has periodically increase salaries of 2.211 employees based on annual job title/position, equivalent to 33.9% of total employees; Among them, male employees were 1.110 persons (17% of total number of male employees) and female employees were 1.101 persons (16.9% of total female employees). For work performance based salary review, 100% of employees eligible for performance appraisal in 2019 had their salary reviewed consistent with the budget and current regulations.

2.211 EMPLOYEES

INCREASE SALARIES IN 2020

In 2020, there were no confirmed claims or incidents related to discriminatory treatments at Baoviet Holdings and its subsidiaries.

DISCRIMINATORY TREATMENTS AND CORRECTIVE ACTIONS TAKEN

Baoviet has always focused on human resources development and viewed this as key to the success of its sustainable development strategy. In its business operations, while establishing and executing human resources policy, Baoviet respects equality, and never let employee discrimination and mistreatment occur. In 2020 and previous years, there is no employee mistreatmen and Discrimination, no forced or compulsory labour at Baoviet.

In 2020, Baoviet Holdings, including subsidiaries, receive no written records relating to violations of laws and regulations in the social and economic fields.

Since its establishment, Baoviet strictly comply with the Vietnam’s Laws on labour.

Baoviet accordingly never uses child labour in its business operations.

CHILD LABOR

GRI

408

FORCED OR COMPULSORY

LABOUR

GRI

409

SOCIOECONOMIC COMPLIANCE

GRI

419


GRI

413

LOCAL COMMUNITY

MANAGEMENT APPROACH ASSESSMENTIn the near future, Baoviet Holdings will continue to provide programs, activities that support the community to achieve sustainable development goals that the Government is targeting.

MATERIALITY TOPIC


MANAGEMENT APPROACH

In line with Baoviet’s sustainable economic goals, Baoviet’s sustainable development strategy aims to balance the benefits for the community and the environment, making social responsibility as a fundamental goal of the Baoviet.

Based on the humanistic meaning of insurance products, which is to share the financial burden with customers when facing with risks, Baoviet invests in the development of micro-insurances such as agricultural insurance and student insurance to assist low-income customers in rural areas to access insurance services for their livelihood, agricultural and production activities.

Furthermore, Baoviet also simultaneously contribute to reducing pressure on the Gorvernment social insurance budget by researching and creating pension insurance products to provide stable income for employees after retirement, bringing better life for the community; specialized insurance products for patients with serious diseases such as cancer and cardiovascular disease to share the financial burden with patients and bringing a prosperious life to the community.

Baoviet also engages in social programs since we believe that community activities are long-term investments for businesses. We undertake community development initiatives on behalf of shareholders in order to benefit society and increase positive impact level of Baoviet through in that locality.

With a nationwide network of operations, Baoviet serves the local community by implementing community development initiatives that contribute to poverty alleviation, positive spiritual and material life for locals. Baoviet also provides jobs in the region, helps to close the gap in living standards between urban and rural areas, as well as improves infrastructure for local people localities.

SCOPE OF REPORTContribution to the development

of local communitiesReduce poverty alleviation

and improve healthcare support Invest in education

and young generation

Gratitude to heroic war martyrs and veterans’ family

Support natural disaster recovery and environmental protection

Evaluate the effectiveness of community programs in 2020

PERFORMANCE OF SOCIAL

RESPONSIBILITIES PROGRAMS

Investing in local community development programs• Reduce poverty alleviation and improve healthcare support • Invest in education and young generation • Gratitude to heroic war martyrs and veterans’ family• Support natural disaster recovery and environmental protection

Developing products for the community benefit• Microinsurances• Pension insurances• Unit linked and specialize insurances

Improving local economic• Create jobs for local communities


354VND BILLION

INVESTED ON COMMUNITY SUSTAINABLE DEVELOPMENT

PROGRAMS

LOCAL COMMUNITYGRI

413

CONTRIBUTION TO THE DEVELOPMENT OF LOCAL COMMUNITIES

In 2020, Baoviet contributes to the sustainable development of the local community through giving priority to investment in programs under the scope of: Invest in education and young generation (VND 10.8 billion, accounting for 52.5%); Reduce poverty alleviation and improve healthcare support (VND 6.7 billion, accounting for 32.5%); Support natural disaster recovery and environmental protection (VND 1.7 billion, accounting for 8.3%; Gratitude to heroic war martyrs and veterans’ family (VND 1.3 million, accounting for 6.7%).

LOCAL COMMUNITY INDICATOR GUARANTEEED BY BAOVIET HOLDINGS INTERNAL AUDIT

DEPARTMENT

GRI

413-1

With a nationwide operating network, Baoviet share benefits with local residents through fulfilling tax obligations, creating jobs and improving the quality of local human resources. Along with the positive contributions from the sustainable and long-term growth of Baoviet, we also aim to promote the socio-economic development of the country through community investment activities.

Carrying out the mission of ‘Ensuring the peace, prosperity and long-term benefits for customers, investors, workers and the community’, in parallel with business growth mission, Baoviet identifies strategic goals for sustainable development through the implementation of economic, environmental and social responsibility goals. Baoviet has always accompanied with local authorities to carry out social activities proactively participated in the Government’s s Decree No.30A to ensure that the progress of the initiative to alleviate poverty rapidly and sustainably, invested in health care, education and youth, and appreciation of veteran’s families…

Generally, in the period of 2009-2020, Baoviet Holding and its subsidiaires actively participated in social welfare activities, invested over VND 354 billion on sustainable development community investment activities, including poverty alleviation projects in Dien Bien and Lai Chau provinces to contribute to the construction of local infrastructure.

Through poverty alleviation programs implemented under the Government’s Decree 30A/2008/NQ-CP, Baoviet helped improve local residents’ living standards, narrow down the gap between rural and urban life, ensure proper implementation of Government’s roadmap.

The investment funds for Baoviet’s community programs comes from 02 sources:

Source of centralized profit-after-tax (percentage of profit-after-tax was approved at the General Meeting of Shareholders, equivalent to 1% of profit-after-tax).

ii)

Source of operation centralized expenses;i)

The total community investemts in 2020 from Baoviet Holdings’s parent company operation expense and profit-after-tax is VND 12.5 billion. Of which, VND 7.2 billion was deducted from the operatiom expenses and VND 5.3 billion was deducted from the profit-after-tax. Beside Baoviet Holdings’s community investments, more than VND 10.5 billion has also been invested from the subsidiaires’ owned funds.

12.5VND BILLION

INVESTED ON 2020 COMMUNITY SUSTAINABLE DEVELOPMENT

PROGRAMS OF BAOVIET HOLDING’S PARENT COMPANY

Local community investments in 2018-2020 (Unit: VND)

PRIORITIES 2018 2019 2020

Invest in education and young generation 21,204,095,000 12,275,766,000 6,070,649,000

Reduce poverty alleviation and improve healthcare support 2,279,186,000 150,000,000 99,300,000

Support natural disaster recovery and environmental protection 100,000,000 - 600,000,000

Gratitude to heroic war martyrs and veterans’ family 180,000,000 - 500,000,000

TOTAL 23,763,281,000 12,425,766,000 7,269,949,000

(from centralized expense budget of Baovit Holdings Parent Company)

Local community investments in 2018-2020 (Unit: VND)

PRIORITIES 2018 2019 2020

Invest in education and young generation 4,072,000,000 200,000,000 -

Reduce poverty alleviation and improve healthcare support - 279,496,011 4,550,000,000

Support natural disaster recovery and environmental protection - 1,460,000,000 -

Gratitude to heroic war martyrs and veterans’ family 1,624,625,000 730,000,000 750,000,000

TOTAL 5,696,625,000 2,669,496,011 5,300,000,000

(from centralized profit-after-tax budget of Baovit Holdings Parent Company)

Thanks to the stable growth result of core businesses over the years, Baoviet will continue to allocate profit-after-tax budget of the Parent Company to invest in more community programs which will corresponds to the proportion of each business segment that contributes to Baoviet’s profits.


LOCAL COMMUNITYGRI

413

PROPORTION OF COMMUNITY INVESTMENT IN 2020

In the profit-after-tax proportion, the insurance segment has always maintained the largest proportion of contribution due to the remarkable growth of life and non-life insurance businesses in recent years.

The proportion of community investment activities per subsidiairy including all sources of operation expenses and profit-after-tax of Parent Company allocated to 100% capital subsidiaries and other sources (social welfare funds/Union funds and donations from employees) are presented in the following tables:

In 2020, Baoviet’s community investments focused on 04 specific areas: Invest in education and young generation (VND 10.8 billion, accounting for 52.5%); Reduce poverty alleviation and improve healthcare support (VND 6.7 billion, accounting for 32.5%); Support natural disaster recovery and environmental protection (VND 1.7 billion, accounting for 8.3%; Gratitude to heroic war martyrs and veterans’ family.

Unit: VND

Business segment

From Baoviet Holdings

Total ProportionBusiness operation expenses

Profit after tax

Business operation expenses

Profit after tax

Other sources (*)

Investment sector 1,090,492,350 5,300,000,000 0 0 - 6,390,492,350 30.2%

BVH 3,315,959,200 5,300,000,000 0 0 0 6,390,492,350 30.2%

Insurance field 3,315,959,200 0 7,307,280,036 381,198,419 - 11,004,437,655 52.0%

BVL - 0 6,521,850,036 381,198,419 0 10,219,007,655 48.3%

BVGI 2,863,497,450 0 785,430,000 0 0 785,430,000 3.7%

Financial services sector 2,863,497,450 0 - 0 451,195,000 3,314,692,450 15.7%

BVF - 0 0 0 0 2,863,497,450 13.5%

BVSC 7,269,949,000 0 0 451,195,000 451,195,000 2.1%

TOTAL 3,740 5,300,000,000 7,307,280,036 381,198,419 902,390,000 21,160,817,455 100.0%

(*) Other sources: Sourcese form social welfare fund, Union fund and employee donations.

Proportion of community investments in 2020

57.6%INSURANCE SEGMENT

39.8% INVESTMENT

SEGMENT

2.6% FINANCIAL SERVICES

SEGMENT

CENTER2018 2019 2020

Investment Proportion Investment Proportion Investment Proportion

Invest in education and young generation

3,677,669,978 82.7% 20,193,255,232 69.4% 10,888,629,416 52.6%

Reduce poverty alleviation and improve healthcare support

5,125,713,373 12.6% 3,424,061,192 11.8% 6,752,761,711 32.6%

Support natural disaster recovery and environmental protection

100,000,000 0.2% 1,561,625,000 5.4% 1,779,881,328 8.6%

Gratitude to heroic war martyrs and veterans’ family

1,810,625,000 4.4% 3,913,735,080 13.5% 1,278,100,000 6.2%

TỔNG 40,714,008,351 29,092,676,504 20,699,372,455

In addition to prioritizing and focusing in specific areas, Baoviet also encouraged the involvement of employee in the process of realizing community investment objectives. Baoviet Holdings and subsidiaries’ organizations including Trade union, Youth union, Veterans’ association and Woman Union annually implemented successfully hundreds of social well-fare programs with billions of VND such as taking care, visiting and donating for the Vietnam Heroes’ Mothers and policy families, building gratitude houses, border shelters and houses of solidarity…

As one of the pioneering enterprises in sustainable development, Baoviet attended the National Conference on Sustainable Development 2019 to share with the Ministries; representatives of local management agencies; representatives of international organizations and other businesses to open answers to current issues as well as useful policy recommendations for the Government.

In 2020, Baoviet Holding has supported VND 20.6 billion social welfare programs including activities such as supporting construction of schools and health stations in localities across the country,

in order to contribute to fast and sustainable poverty reduction. In addition, the Group also focuses on gratitude activities, participates in embellishing historical sites, building gratitude houses, and award scholarships to poor students who overcome difficulties to study well. In the school year 2020-2021, Baoviet Holdings continues to sponsor scholarships for students of the National Economics University and the Finance Academy with the total amount of VND 650 million and VND 570 million respectively. Baoviet scholarships are awarded to students who have excellent academic achievements, students in difficult circumstances, and policy families with the spirit of striving for learning…

For more than half a century, Baoviet Holding has accompanied people across the country to share the financial burden in their lives, fulfill its commitments, share and take responsibility to “Ensuring peace, prosperity and long-term benefits for customers, investors, workers and the community.

Proportion of community investments by specific area in 2020

Proportion of community investments by business segment in 2020

Proportion of community investments in 2020 (Total business operation expense and profit-after-tax of Baoviet Holdings and subsidiaries)

BVH BVL BVGI BVF BVSC Investment sector Insurance field Financial services sector

Invest in education and young generation Reduce poverty alleviation and improve healthcare support Support natural disaster recovery and environmental protection Gratitude to heroic war martyrs and veterans’ family

31%

49%

4%

14%2%

40%

57%

3%

52.6%

32.6%

6.2%

8.6%


LOCAL COMMUNITYGRI

413

Baoviet defines investment in education as an investment for the future and a fundamental investment. Therefore, over the years, Baoviet has prioritized budget for educational development activities such as school donation, scholarships for excellent students, building schools, sponsoring learning tools, giving gifts and scholarships to disadvantaged children.

THE HEART JOURNEY - “ACCOMPANYING STUDENTS TO SCHOOL”

SPRING DAY 2020 – GIVES GIFTS TO THE DISADVANTAGED PATIENTS AT HANOI HEART HOSPITAL

In 2020, the Trade Union of Baoviet Insurance Corporation cooperated with the Youth Union to implement the program “Baoviet accompanies students to school” at Secondary School & High School Vu Muon, Bac Kan.

In the new school year, on 5 September, Representative of Leaders of Baoviet Insurance, Trade Union, Youth Union and BaoViet for the Community club and leaders of Baoviet Bac Kan Company attended the opening ceremony and presented gifts worth 75 million VND to teachers and students in Vu Muon Secondary school and High school in Bach Thong district, Bac Kan, including 20 bicycles, 50 sets of stationeries, sports equipment, water purifier,… Baoviet hope to share and fulfill our commitment with the community and society.It is an annual event that the Baoviet Insurance Corporation

organizes a new school year ceremony to support students with difficult circumstances who have to go through many deprivations and struggles to study every day.

On February 7, 2020, the Trade Union and Baoviet Insurance Youth Union cooperated with Hanoi Heart Hospital to organize a charity gift-giving program for patients who have difficult circumstances are staying for medical examination. As a result, more than 50 gifts have been delivered to the patient’s family. Thus, it is not only a gift to wish peace at the beginning of the new year, but partly shared the difficulties with patients their families.

This is also a volunteer program held annually by Baoviet Insurance to accompany social security activities, contributing to supporting families/individuals in needy circumstances.

INVEST IN EDUCATION AND THE YOUNG GENERATION

To “Protect Vietnamese benefits - Protect Vietnamese future,” in 2020, Baoviet Life continues to award students bicycle scholarships for 1,880 poor and studious students in 27 provinces and cities across the country: Gia Lai, Nghe An, Bac Ninh, Dong Nai, Thai Nguyen, Quang Tri, Tay Ninh, Thua Thien Hue, is a regular activity. Baoviet Life has persistently implemented this annual event for many years. It has awarded 26,000 scholarships to disadvantaged children to encourage them to continue on the path of academic success, grow up to become valuable citizens and build a more prosperous and more beautiful homeland.

1,880DONATINGBICYCLES TO POOR AND STUDIOUS STUDENTS

“These gifts are the hearts of Baoviet Insurance employees who want to send them to the patients, hope to be the motivation for patients to overcome diseases and return to a peaceful life soon”.

Representative of the Corporation’s Board of Directors - Mr. Do Hoang Phuong shared:


POVERTY ALLEVIATION AND HEALTH SUPPORT

BAOVIET SUPPORT 20 MILLION VND/POSITIVE CASE OF SARS-COV-2 FOR 1 MILLION VIETNAMESE CITIZENS

In March 2020, respiratory infection (Covid-19) became a hazard for the world in general and Vietnam, remarkably when the number of infected people is increasing rapidly. Witnessing the complicated developments of the Covid-19 epidemic, Baoviet officially launches the program “FINANCIAL GIFT NOW - OVERCOME THE PANDEMIC TOGETHER” to join hands with society to prevent and reverse the pandemic. Accordingly, Baoviet has issued a policy of financial support 20 million VND/Covid-19 infected person for the first million Vietnamese citizens who registered to participate in this program.

In addition, Baoviet Life also announced a particular policy, paying 200% of benefits providing regular hospital fees to customers infected with Covid-19. Moreover, reduce waiting time all when customers are hospitalized, seriously ill or dies by Covid-19.

SUPPORT 2,500 POOR HOUSEHOLDS TO RECEIVE A FREE MEDICAL EXAMINATION

SHARING THE SPIRIT OF YOGA TO MORE THAN 5,000 PEOPLE, RAISING AWARENESS OF HEALTH PROTECTION

With the desire to contribute to improving the quality of Life for Vietnamese, In 2020, Baoviet Life’s “Green Journey - Golden Heart” program reached five provinces embedding: Dong Nai, Gia Lai, Hai Phong, Bac Ninh and Nghe An. The program is accompanied by the doctors from central hospitals, free medical examination, and sharing about protecting and staying healthy for more than 2,500 poor households.

Baoviet Life’s “Green journey” not only mobilizes the dedicated participation of more than 200,000 “Golden Hearts” - volunteers, consultants Baoviet Life, but also call for joining hands to contribute the team of dedicated doctors and nurses from central hospitals to coordinate medical examination for free, helping people to detect diseases and raise awareness of disease prevention.

2020 is a year of many changes for people worldwide, including Vietnam, because the disease has had a significant impact on society’s life and health. To raise awareness of people in proactively protecting the health of themselves and their families, in 2020, Baoviet Life continued to coordinate with the Embassy of India to organize International Yoga Day. Through the theme “YOGA - Refresh your life,” Yoga for a New Beginning, Baoviet Life wishes to spread the message of mastery living, optimistic about being ready to face all challenges. More than 5,000 people love Yoga at Vinh Phuc, Quang Ninh, Phu Yen, ... have joined Baoviet Life as ambassadors to spread the spirit and positive energy, ready to deal with the epidemic. The program is organized to ensure room regulations anti-epidemic, safe for participants.

With a view to reducing the disproportionate development between urban and rural areas due to the impact of the economy, Baoviet invests in infrastructure, builds health stations, schools, and houses for people in difficult provinces, helping them feel secure to work and continue to support themselves and their families. In addition to the campaign to eliminate hunger and reduce poverty in regions such as Nghe An, Quang Tri, Thai Nguyen, Quang Binh, Tay Ninh, Phu Tho, etc. Baoviet will continue to implement social security activities according to Resolution 30A/2008/NQ-CP on the Government’s program prompt and sustainable poverty reduction support for 61 poor districts.

LOCAL COMMUNITYGRI

413


LOCAL COMMUNITYGRI

413

BLOOD UNITS HAVE BEEN DONATED

“BAOVIET - FOR YOUR BELIEFS” BLOOD DONATION:

BUILDING CHARITY HOUSES IN KIEN GIANG AND HA GIANG

in the 7th voluntary blood donation “Baoviet - For your beliefs” in Hanoi.

With the spirit of “Every drop of blood given, a life remains,” Baoviet understands that it is crucial to blood donation for patients. On 11/12/2020, 300 units of precious blood contributed to the program “Baoviet - For your beliefs”.

Since 2013, Baoviet’s voluntary blood donation program has been organized to motivate more confidence and optimism to patients in need of blood transfusion. As a result, the program received the enthusiastic support of Baoviet’s employees and consultants, showing the kindness and responsibility of individual to the community. So far, the voluntary blood donation program “Baoviet - For your beliefs” has contributed 2,700 blood units, contributing to the community in a timely supply of blood, bringing life to many patients.

Deploying during the pandemic, the blood donation process is strictly controlled. Staff and consultants donate blood are required to have health declaration, blood pressure measurement, check suitability for blood donation, and take safety measures during the Covid-19 pandemic.

are challenging to travel, two houses in Thong Nhat hamlet, Quang Minh commune, Bac Quang district, Ha Giang province and Vinh Hung Hamlet, Hoa Chanh commune, U Minh Thuong, Kien Giang in dilapidated, damaged, badly degraded condition, members in that families need to face with challenges every day. Therefore, promoting the wonderful tradition of “Drink water, remember the source” of the Vietnamese people, the Trade Union of Baoviet Insurance Corporation has contributed to build 02 houses for 02 households with difficult circumstances as above with the total support for building homes is 130,000,000 VND.

Thereby, Baoviet Kien Giang & Baoviet Ha Giang had coordinated with local authorities to organize the construction, quality assurance supervision and use of support funds for the proper purposes and transparency.

On December 11, 2020, Baoviet Group collaboration with the National Institute of Hematology and Blood Transfusion held for hundreds of employees and consultants participating

In 2020, Baoviet Insurance Corporation’s Trade Union cooperates with Baoviet Group’s Trade Union to join hands to bring “home” for families with difficult circumstances.

Located far from the center of the commune, the roads

OVERCOMING THE CONSEQUENCES OF NATURAL DISASTERS AND THE ENVIRONMENT

Recently, due to the impact of climate change, natural disasters have become more extreme and have left heavy consequences for humans and the environment. Therefore, it is well aware of its role as an economic driver and as a pioneer, enterprise to ensure the peace and development of the community.

BAOVIET INSURANCE RELIEF TEAM CROSSED THE SEA AND ENTERED THE “FLOOD NAVEL” AREA TO GIVE ESSENTIAL ITEMS TO PEOPLE IN THE CENTRAL REGION

Witnessing the “gut” of the Central region suffered a lot of loss of people and property after the flood. Not to be outdone, Baoviet Insurance quickly brought a relief truck from the Corporation (Hanoi) directly to the three most affected central provinces in the country (Ha Tinh, Quang Binh, Quang Ninh) to promptly hand over the essential items to the people.

From October 21, 2020, Baoviet Ha Tinh, Baoviet Quang Binh, and Baoviet Quang Tri companies have quickly and promptly carried out relief work. In the immense sea of Central Vietnam, the delegations did not hesitate to sail and wade to each household to hand over practical gifts, including 1.610 life jackets and 1.730 raincoats, bottled drinking water, food and many other necessities.

However, the Baoviet Central Company also upholds the spirit of “The leaves protect tattered ones “ by actively moving to neighboring provinces and coordinating with the Company. The local Baoviet gave a meaningful gift of relief to the local people. At the same time, from the Corporation and its member companies, the whole system has simultaneously called for cash donations of at least one day’s salary in the hope of partly sharing difficulties, helping people stabilize their lives soon. after the disaster.

SUPPORT 4 CENTRAL PROVINCES TO OVERCOME THE CONSEQUENCES OF FLOOD DISASTER

At the end of October 2020, storms from the East Sea continuously landed in the Central region, causing significant damage to people and properties, leaving 192 dead and 57 missings, 1,531 houses collapsed; 239,340 homes were damaged, their roofs were blown off, and more than 473,450 turns of places were flooded. “Leaving no one behind,” Baoviet Life Corporation quickly coordinated with authorities at four provinces of Ha Tinh, Quang Tri, Quang Binh and Thua Thien Hue to present gifts to families are severely affected by floods and storms.

At the same time, Baoviet Life’s staff and consultants in 76 provinces/cities also volunteered to support at least one day’s salary to share the loss and pain with people in “flooded” areas. “contributing to help people overcome the consequences and soon stabilize their lives.

2,700


GIVING GIFTS TO POLICY FAMILIES ON THE OCCASION OF WAR INVALIDS AND MARTYRS’ DAY

GRATEFUL TO HEROES AND MARTYRS, FAMILIES WITH MERITORIOUS SERVICES TO THE COUNTRY

With the moral of drinking water, remember its source and When eating a fruit, be grateful to the grower. Baoviet is always thankful for the sacrifices and spirit of the soldiers who fought for the independence and freedom of the Fatherland and demonstrated by their efforts to preserve and preserve historical relics - proof of a period of heroic national struggle and forever the pride of Vietnamese generations. Therefore, the restoration and embellishment of historical relics to contribute to the gratitude of the previous generations, and at the same time, the educational activities of the country’s revolutionary traditions for the following generations are also protected. Viet is interested in implementation.

Actively join hands with the State in gratitude to veterans and their families with meritorious services to the Revolution, contributing to the country’s social security work, with the support of the Provincial Party Committee, the People’s Committee of Thai Binh province, On July 27, 2020, Baoviet Life held a groundbreaking ceremony for the construction of a detoxification center for members of the Association of Agent Orange Victims (CVD) in Thai Binh province with a total investment value of 3 billion VND, At the same time, giving gifts to the children of war invalids of Agent Orange at the Center...

On the occasion of the 72nd anniversary of War Invalids and Martyrs’ Day on July 27, Baoviet Group’s Trade Union cooperated with Mong Cai International Border Gate Border Guard Station to pay tribute to policy beneficiaries and families meritorious services to the revolution. The headland of the country. The delegation visited and gave gifts to dozens of policy families in Mong Cai, Quang Ninh, with a total value of 40 million VND. Soviet Group’s Trade Union also gave gratitude gifts to policy families with children currently working in Baoviet, demonstrating our nation’s principle of drinking water, remembering its source.

CORPORATE RESPONSIBILITY PLAN IN 2021

In 2021, the Baoviet plans to spend about VND30 billion from operating expenses and VND10 billion from profit after tax to perform social security and community support tasks. Through projects to build schools, medical stations, gratitude activities, embellish historical sites, build houses of gratitude, visit and give gifts to highland students, build kitchens and homes boarding… join hands with local communities and communities to significantly improve the living and learning conditions of local people and students.

LOCAL COMMUNITYGRI

413


GRI

416

CUSTOMER HEALTH AND SAFETY

MANAGEMENT APPROACH ASSESSMENTWith the corporate governance focusing on customers’ health and safety, Baoviet ensures that products and services perform properly and bring the most benefits, without causing risks of health and customer safety.

MANAGEMENT APPROACHMANAGEMENT PURPOSE MANAGEMENT APPROACH

Through development of unit-linked and specific purpose insurance products as well as maintaining micro insurance products for low-income customers, Baoviet fulfills its firm commitment bringing comprehensive financial solutions protect to customers and community throughout the life of products and services. Baoviet’s governance measures are also taken into account in compliance with regulations and laws on health and safety impacts on customers.

Continuous launching of voluntary personal pension products, insurance products for specific purpose are not only the way for Baoviet sharing the burden of State budget and State social insurance fund but also facilitating our customers to prepare for their retirement lives or unpredictable health problems. In addition, Baoviet also maintains micro insurance products including low premium product for majority to support households below and at the threshold of the poverty line in countryside and urban areas to improve their life quality.

MATERIAL TOPIC

As a corporate providing insurance and financial service, customer health and safety impacts of products are noted and assessed for improvement in initial life cycle stages from development of product concept and research and development to provide effective protection scheme.

SCOPE OF REPORT

Develope unit-linked and specialize insurance products to bring comprehensive financial solutions to community

• Maintaining micro insurance products for low-income people

At the beginning of 2020, the situation of acute respiratory infections caused by the SARS-COV2 virus (Covid-19) became the focus of the whole world in general, and Vietnam in particular, when the number of people infected with the virus increased day by day. In the face of complicated developments of the Covid-19 epidemic, with the goal and mission of taking care of and protecting the health of the community getting better and better, Baoviet Insurance has officially launched the program FINANCIAL DON’T - JOIN OUT I wish to join hands with society to prevent and fight the pandemic. Registration is completely free.

After only two weeks of launch, the program has registered the first 1 Million citizens with a series of positive feedback, support & received countless thanks from the community. Vietnamese, after registering, will receive a 01 Protection Program worth VND 20 million if unfortunately infected with the SARS-COVID 2 virus.

BAOVIET PAYS 20 MILLION VND/CASE OF SARS-COV-2 FOR THE FIRST REGISTERED “ONE MILLION VIETNAMESE CITIZENS.”

DEVELOPE UNIT-LINKED AND SPECIALIZE INSURANCE PRODUCTS TO BRING COMPREHENSIVE FINANCIAL SOLUTIONS TO COMMUNITY


LAUNCHED THE PRODUCT CANCER AND STROKE INSURANCE WITH THE HIGHEST PAYOUT IN THE MARKET

LAUNCHED A SUPERIOR INSURANCE PRODUCT FOR CHILDREN

Cancer is still often called with haunting names such as “K disease,” “death sentence,” “the end” because the number of new cases and deaths from cancer every year is continuously increasing. Moreover, along with cancer, stroke is increasingly younger, even occurring very early in the 20s and 30s, raising alarm bells about proactive health care. However, with the advancement of medicine, people with cancer and stroke can completely recover if detected early and treated aggressively. Besides, scientific studies also show that a scientific and healthy lifestyle can prevent cancer and stroke early with a scientific and healthy lifestyle.

To promote the spirit of proactive living, in December 2020, Baoviet Life launched the preeminent online product LifeCare - The only integrated Cancer Insurance on the market, providing financial solutions proactive and thoughtful, spreading the meaningful message “Cancer is not for fear, but action.” The product is easy to join, has low fees, protects right from the start and covers up to 122% of the sum insured, the highest payout on the market today.

Life insurance is a solid form of protection that other financial solutions such as savings and investments cannot provide, providing financial security for your child’s future under all circumstances. To accompany parents on the journey with their children to grow up, grow up and live a happy life, Baoviet Life has researched and developed the life insurance product “An Khoa Trang Nguyen.” Together with parents, prepare the future for their children.

Not only is inheriting the preeminent benefits in children’s products of Baoviet Life, but “An Khoa Trang Nguyen” is also added with the most comprehensive and attractive new benefits for children. Children on the market, helping to accumulate and protect both children and parents in the same contract, such as extended medical care benefits for children, financial support benefits and fee waiver return of the main contract if unfortunately, the parents have a severe illness, attractive career gift benefits for all children participating in the agreement, ... Besides, “An Khoa Trang Nguyen” has a participating age ranging from 0 to 15 years old, and has the option of a short payment term of 5 years but still protected for 18 years.

Life Care

PROMOTE EDUCATION FOR YOUNG FUTURE GENERATION

It can be seen that, when adopting insurance products for children and adolescents, insurance companies incline to maintain higher indemnity insurance coverage than total premium since they are proactive and inquisitive; thereby increase risks relating to school accidents. Baoviet however still attempts to promote insurance products for pupils with a humanity purpose and local education.

in the last school year, Baoviet accepted claims and paid for 176,784 accidents of pupils and teachers with a total claim of nearly VND 170 billion. In addition, Baoviet also implemented policy of no fee charged for all pupils and students being children of martyrs and wounded soldiers; 50% discount of fee for disable pupils, orphans, helpless and poor pupils. Baoviet regards adoption of removal or reduction of fees policy as a social policy that we are responsible for implementing, making considerable contribution into education for young future generation.

Studend insurance

REDUCE RISKS, AND PROTECT TRAFFIC PARTICIPANTS

In fact, the number of traffic accidents in Vietnam is increasingly rising with more serious level. According to the recent statistics report, there have been 21,589 traffic accidents all over the country, causing 8,685 deaths and 19,280 people injured. Those accidents have had an adverse impact on GDP 2020, leading to a fall of 2.9% (equivalent to VND300.000 billion/day) with severe financial losses and reduced life quality of many families.

Because of those, raising awareness of traffic participants and reducing physical losses of accidents are of importance when Baoviet provides vehicle insurance products. Only in 2019, Baoviet offered insurance for 480 thousand cars and 1.9 million motorcycles nationwide with scope of insurance involving in fire and explosion, compulsory insurance of civil liability for vehicle owners and accident insurance with total insurance payout of VND 1,138 billion. In addition, Baoviet also proactively attempts to raise awareness of traffic participants in various forms such as: outside billboards in main roadway, important routes; installing reflectors through hazardous areas, especially mountainous and craggy areas…

Vehicle insuranceAn Khoa Trang Nguyen

CUSTOMER HEALTH AND SAFETYGRI

413

MAINTAINING MICRO INSURANCE PRODUCTS FOR LOW-INCOME PEOPLE


G4

FS7

PRODUCT AND SERVICES DESIGNED TO DELIVER SOCIAL BENEFITS

MANAGEMENT APPROACH ASSESSMENTIn general, many products and services of Baoviet meet the needs of all part in the society such as products and services related to education, health care, etc…

Specifically, there are products and services of Baoviet that support development opportunities and improve financial capacity for disadvantaged groups. Although all products and services are designed to have different benefits for society, the FS7 indicator will focus only on products and services designed to bring benefits for specific or prioritized people in society.


MANAGEMENT APPROACH

The FS7 indicator provides information and data on Baoviet’s products and services to the majority of people and serves the community, therefore, bringing an overview of Baoviet to the products and services.

With the continuous release of integrated and specialized insurance products designed for community benefits such as pension insurance, health education insurance, agricultural insurance and microinsurance with low-premium for the majority of people, Baoviet believes that these products will support improving poor and near poor households’ life in rural and urban areas. This is also a way Baoviet shares the burden on the state budget and social insurance fund.

The FS7 indicator provides information about Baoviet’s products and services with social benefits in each business field and does not include other products and services that are required by law. Accordingly, each type of product shows the following:

MATERIALITY TOPIC SCOPE OF REPORT

Products and services of non-life insurance

Products and services of life insurance

Product descriptions, purposes and target customers

Product monetary value Ratio of the product monetary value over total monetary value

of all products

PRODUCTS AND SERVICES DESIGNED TO DELIVER SOCIAL BENEFITS GUARANTEED BY BAOVIET HOLDINGS INTERNAL AUDIT DEPARTMENT

The FS7 indicator provides information and data on products and services of Baoviet and its subsidiaries in building social capital, meeting the needs of the community. Although products and services are designed to bring different benefits to the society, FS7 only focuses on products and services designed to benefit specific target, or being prioritized in society.


DEFINITION

The products and services of Baoviet and subsidiaries are designed to provide a specific social benefit to meet theneeds of the priority group in society such as students, the elderly, the disabled, less fortunate, farmers with low financial capacity ...

TYPES OF PRODUCTS AND SERVICES DELIVER

BENEFITS TO THE COMMUNITY AND THE

SOCIAL PRIORITIES INCLUDE:

NON-LIFE INSURANCE PRODUCTS AND SERVICES DELIVER SOCIAL BENEFIT

Baoviet General Insurance Corporation (BVGI) is a subsidiary of Baoviet Holdings in the field of non-life insurance. BVGI is Top 1 of non-life insurance market in Vietnam with diversified products for a wide range of people in the society, bringing long-term benefits and improving social life. In particular, some featured products bring value to the community, to a wide range of people in the society and to low-income people. Specifically:

Featured products were designed to deliver social benefits:

1.Agricultural insurance

The product designed to protect agricultural production from the

risks of natural disasters and epidemics, to ensure that farmers and agricultural enterprises have

capital to reinvest in case of facing unexpected risks.

BVGI is a pioneering enterprise in the sector.

2.Personal Insurance

Personal insurance is an insurance program designed to cover the health, life and ability of a person to work. When buying this type of insurance, the insured is

entitled to a lot of insurance benefits and subsidies

corresponding to the insured value when the insured event

occurs.

3.Asset Insurances

Asset Insurances help businesses feel secure in implementing business

development strategies by using of those assets. In the recent time, risks related to fire and

explosion occur at an extremely intense level.

Microcredits: Bank’s products that provide credit and finance coverage to low-income households and individuals;

Preferrential products for priority beneficiaries (farmers, farmers with low-income, low-income workers, children, the elderly, etc.);

Remittances.

Products for students;

Microinsurance: Insurance products for low-income households and individuals or lowvalue assets;


G4

FS7

MICROCREDITS MICROINSURANCE REMITTANCESAFFORDABLE HOUSINGSUPPORT

PRODUCTS

PREFERRENTIALPRODUCTS

FOR PRIORITYBENEFICIARIES

PRODUCTS FOR

STUDENTSB��’� ��

fi�� -��

�� ;

I�� -��

�� ;

2016 2017 2018 2019 2020

12 17.5

18.2

17.6

16.061

3 880

988

1,04

8

7641,

210

1,55

2

1,66

7

2,04

3

2,11

6

4,73

1 5,71

8

7,28

9

7,24

8.3

6,51

2

Ratio of Non-life Premium Revenue by product Non-life Premium Revenue by product (VND billion)

Agricultural Insurance Fire and Property Insurance Personal Accident Insurance Others

0.2%10.8%

21.8%

67.2%1,000

5,000

7,000

6,000

4,000

2,000

3,000

8,000


As an agricultural country, the loss from annual natural disasters in Vietnam accounts for 1.5% of GDP (equivalent to about $ 10 billion). People need a guarantee for their labor and product, and agricultural insurance is products support for farmers in the event of a risk.

In the context, BVGI has been leading the market, offering agricultural insurance products with specific products such as animal insurance, plant insurance, high tech agriculture insurance, insurance of civil responsibility dog owners ...

Baoviet’s agricultural insurance products have meaningful financial protection and social security, as Vietnam’s economy is mainly agricultural, this is a really necessary product. In addition, BHBV is also beginning to implement hi-tech agricultural insurance, providing comprehensive protection for high tech enterprises, 4.0 technology in the agricultural sector.

The product designed to protect agricultural production from the risks of natural disasters and epidemics, to ensure that farmers and agricultural enterprises have capital to reinvest in case of facing unexpected risks. BVGI is a pioneering enterprise in the sector.

TYPICAL PRODUCTS

• Rice insurance: The insurance companies shall compensate for the insurers the lost amount from fall in the production of rice due to the risks from natural disasters and/ or pests, and/ or diseases within the insured period. The products are applied in Binh Thuan, Dong Thap, Nghe An and Thai Binh.

• Cattle insurance: The insurers shall be compensated in case of the pets’ death due to the direct causes from natural disasters, diseases, destruction due to diseases upon the decisions of the competent agents. The products are applied in Bac Ninh, Dong Nai, Nghe An and Vinh Phuc.

• Industrial tree insurance: The insurers shall be compensated in case of natural disasters, fire, lightening strucks, etc. The products are applied in the big production areas in Binh Phuoc and Tay Nguyen.

• Agriculture insurance under the State supportive policies: Baoviet is always the leading enterprise in the implementation of the State policies supporting the agriculture insurance for poor individuals, close-to-poor cases and other agricultural production companies. In 2019, when the policies implementing the Decree No. 58/2018/ND-CP dated 18th April 2018 regarding the agriculture insurance are implemented, Baoviet shall continue to provide the useful products for the agricultural production industry domestically, creating the foundation for the general development of the Vietnamese Agriculture in the new era.

PRODUCT MONETARY

VALUE

Revenue structure of agricultural insurance accounted for reaching 0.2% 16

OF THE TOTAL REVENUE OF NON-LIFE INSURANCE

VND BILLION IN 2020 REVENUE

1. AGRICULTURAL INSURANCE

PRODUCT DESCRIPTIONS AND PURPOSES


G4

FS7


Personal insurance is an insurance program designed to cover the health, life and ability of a person to work.

Asset Insurances help businesses feel secure in implementing business development strategies by using of those assets.

When buying this type of insurance, the insured is entitled to a lot of insurance benefits and subsidies corresponding to the insured value when the insured event occurs. Insured cases are cases of illness or accident that directly affect the health of the insured. Non-life insurance products usually have low fee rates, short insurance period and usually within 1 year and after 1 year, customers can renew the insurance contract if needed.

In the recent time, risks related to fire and explosion occur at an extremely intense level. The trend of real estate market has increased sharply by high-rise apartment buildings, high-density of low-income housing, so there are many potential risks of fire and explosion. Property insurance product is particularly bringing benefit to the lost investment when risks occur.

TYPICAL PRODUCTS

• Integrated insurance: used to insure the individuals or groups with the demand on protecting themselves against the risks such as accidents, sickness, diseases, etc. The advantages are cheap prices, addressed to many targets, especially the low-incomers. The insured targets are Vietnamese, foreigners working or studying in Vietnam of ages from 16 to 65 years old.

• Accident insurance: Life always brings unwanted incidents, unexpected accidents. The insurance on human accidents targeting to protect the customers against the risks on having accidents within the land of Vietnam. The applied target is children from 15 days old to adults at 75 years old. This is a product with wide range of coverage and a vast range of age.

• Comprehensive insurance for students: Compensated in case the insurers are sick or with diseases, or in accidents with injuries, or inward treatments, surgeries or death. The insured subjects are pupils from nursery, kindergarten, primary schools, secondary schools, high schools, and students from universities, colleges, and training centers. The scope of coverage is wide, with many social benefits due to the fact that the insured subjects are prioritized in the community.

PRODUCT MONETARY

VALUE

In 2020, revenue from human insurances accounted for reaching 21.8% 2,116

OF TOTAL NON-LIFE INSURANCE REVENUE STRUCTURE

VND BILLION

TYPICAL PRODUCTS

Typical products such as: Compulsory fire and explosion insurance (according to Decree 23/2018/ND-CP), Asset risks insurance, Private houses, machinery, equipment, materials, goods, raw materials, warehouses and offices are fully protected against the risk of fire, explosion, risk of natural disaster.

PRODUCT MONETARY

VALUE

In 2020, Revenue from Asset insurance accounted for reaching 10,8% 1.048

OF THE TOTAL REVENUE OF NON-LIFE INSURANCE

VND BILLION IN REVENUE OF 2020

2.

3.

PERSONAL INSURANCES

ASSET INSURANCES




G4

FS7


LIFE INSURANCE PRODUCTS AND SERVICES DELIVER SOCIAL BENEFIT

Baoviet Life Corporation (BVL) is a wholly owned subsidiary of Baoviet Group in life insurance. As the leading enterprise in Vietnam’s life insurance industry, BVL strives non-stop in the journey of protecting Vietnamese values, bringing a healthy life, smile and happiness to Vietnamese families. BVL has continuously improved the quality and diversified of products and services for many social segments in order to continuously contribute to the development of Vietnamese community. Some groups of products and services bring specific benefits to the society (mainly children and the elderly) include: Universal insurance, Pension insurance with value and proportion in revenue of BVL as follows:

Ratio of Life Premium by product Life Premium Revenue by product (VND billion)

2,000

10,000

14,00012,000

8,000

4,0006,000

16,00018,00020,000

2016 2017 2018 2019 2020

7,96

8.5

4,73

2.0

62.4

693.

5

10,0

76.0

6,10

9.5

149.

31,

135.

9

12,2

86.4

7,59

7.7

137.

21,

486.

1

15,7

45.9

8,31

2.3

284.

280

7.3

18,7

09.8

7,90

5.0

123.

11,

299.

2

Investment-linked insurance Universal insurance Pension insurance Others

0.4%4.6%

66.7%

28.2%

2. VOLUNTARY PENSION INSURANCE

Designed as a supplement to individuals’ social welfare at retirement age, bringing customers a proactive saving plan for their retirement, especially in the period of pension and social welfare insurance policy has many potential changes when balancing revenue and expenditure is always the pressure of the State. This insurance product provides benefit against the risks in life, combination with periodic pensions, which complements compulsory pension insurance, creating a comprehensive and diversified social security system, basically meet the pension insurance needs of employees of all economic sectors.

In 2020, Revenue from pension insurance products accounted for 0.4%

OF THE TOTAL LIFE INSURANCE REVENUE

reached 123.1VND BILLION


PRODUCT MONETARY VALUE

Huu tri Vung nghiep (for groups)

Huu tri An khang (for individuals)

TYPICAL PRODUCTS

1. EDUCATION AND HOUSEHOLD FINANCE INSURANCES

Designed with combined “insurance” and “cumulative financial investment” benefits, BVL products offers families and children a comprehensive protection against risks, helping families stabilize their lives and make effective financial plans for the future.

An Tam Hoc Van

For children aged 0-14, with their parents to support the future of their children from the moment they are born. Products not only ensure a solid financial source for children to fulfill their educational and career goals, but also share in a timely manner when there is a risk to children or parents.

Tron Đoi Yeu Thuong

Comprehensive protection and health care for the whole family in the same contract. With two special packages of Gold and Diamond, the product has comprehensive coverage, superior insurance benefits, flexible fee forms, helping Vietnamese families to prepare for a fullfiled and happy life.

Revenue of universal insurance products accounted for reached 28.2% 7,911.8 OF THE TOTAL LIFE INSURANCE REVENUE

VND BILLION


PRODUCT MONETARY VALUE

TYPICAL PRODUCTS


G4

FS7


GRIINDEX TABLES

GRI STANDARDS

GRI G4

This report is published in order to serve the enterprise/corporation itself in implementing sustainable development strategy. Only when each member of Baoviet awares and understands the need of sustainable development, therefore transfer into actual action to successfully implement new sustainable development strategy.

The GRI Guide of the GRI Sustainability Reporting Standards (GRI Standards) is the most comprehensive and uptodate standard assessment on sustainability of the business, as well as disclosing more detailed information on the three main factors: Economy - Environment - Society. Therefore, Baoviet has proactively researched and applied to our Sustainability Report since 2017.

This report includes information in General Disclosures, and in accordance with Economic - Environment – Social standards with additional disclosures of the GRI for the Financial Services industry.

Baoviet hope to inspire and connect businesses in building a sustainable business ecosystem based on technology application to minimize impacts on the environment and natural ecosystem.

272 273Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION GRI INDEX TABLES

GRI STANDARDS INDEX TABLE

GRI DISCLOSURE ITEM REPORT OF BAOVIET PAGE

GRI100 UNIVERSAL STANDARDS

ORGANIZATION PROFILE

102-1 Name of the organization Report overview 18

102-2 Activities, brands, products, and services

Organizational profile 26

102-3 Location of headquarters

102-4 Location of operations

102-5 Ownership and legal form

102-6 Markets served

102-7 Scale of the organization

102-8 Information on employees and other workers

102-9 Supply chain

Procurements 166102-10

Significant changes to the organization and its supply chain

102-11 Precautionary Principle or approach Sustainable corporate governance 90

102-12 External initiativesSustainable stakeholder engagement 130

102-13 Membership of associations

STRATEGY

102-14 Statement from senior decision-maker Chairman’s Message 22

102-15 Key impacts, risks, and opportunities Business Environment, Opportunities and Challenges 48

ETHICS AND INTEGRITY

102-16 Values, principles and norms of behavior

Ethics and integrity 84102-17

Mechanism for counseling and reporting concerns related to code of conduct and business ethics

GOVERNANCE

102-18 Governance structure Corporate Governance 36

102-19 Delegating authority

Ethics and integrity 84102-20

Executive-level responsibility for economic, environmental, and social topics

102-21Consulting stakeholders on economic, environmental, and social topics

Engaging stakeholders in sustainability 130

102-22Composition of the highest governance body and its committees


96102-23 Chair of the highest governance body

102-24Nominating and selecting the highest governance body

102-25 Conflicts of interest Remuneration and benefits of the BOD, BOS 110


102-26Role of highest governance body in setting purpose, values, and strategy


96102-27 Collective knowledge of highest governance body

102-28Evaluating the highest governance body’s performance

102-29Identifying and managing economic, environmental, and social impacts

Impacts of sustainable development trend on Baoviet

52

102-30 Effectiveness of risk management processesSustainable corporate governance 90

102-31Review of economic, environmental, and sociall topics

102-32Highest governance body’s role in sustainability reporting

Dedicated working team on sustainable development in Baoviet

108

102-33 Communicating critical concernsSustainable stakeholder engagement 132

102-34 Nature and total number of critical concerns

102-35 Remuneration policies

Remuneration and benefits of the BOD, BOS and BOM

110

102-36 Process for determining remuneration

102-37 Stakeholders’ involvement in remuneration

102-38 Annual total compensation ratio

102-39Percentage increase in annual total compensation ratio

STAKEHOLDERS ENGAGEMENT

102-40 List of stakeholder groupsSustainable stakeholder engagement 131

102-42 Collective bargaining agreements

102-43 Approach to stakeholder engagement The basic principle in engaging stakeholders 132

102-44 Key topics and concerns raised Baoviet’s engagement with stakeholders 133

REPORTING PRACTICE

102-45Entities included in the consolidated financial statements

Report Overview 18

102-46 Defining report content and topic Boundaries

102-47 List of material topics

102-48 Restatements of information

102-49 Changes in reporting

102-50 Reporting period

102-51 Date of most recent report

102-52 Reporting cycle

102-53 Contact point for questions regarding the report

102-54Claims of reporting in accordance with the GRI Standards

102-55 GRI index

102-56 External assurance



GRI200 ECONOMIC STANDARDS

GRI 201: ECONOMIC PERFORMANCE

201-1 Direct economic value generated and distributed Direct economic values created and distributed 148

201-2Financial implications and other risks and opportunities due to climate change

Business Environment, Opportunities and Challenges

48

201-3Defined benefit plan obligations and other retirement plans

Salary and welfare for employees 155

GRI 202: MARKET PRESENCE

202-1Ratios of standard entry level wage by gender compared to local minimum wage

Market presence 156

GRI 203: INDIRECT ECONOMIC IMPACTS

203-2 Significant indirect economic impacts Indirect economic impact 160

GRI 204: PROCUREMENT PRACTICES

204-1 Proportion of spending on local suppliers Procurements 166

204-2Social and governance environmental criteria in investment projects

Engaging ESGs in investment projects 176

204-3Social and governance environmental criteria in the supply chain, supplier selection

Integrating sustainability in the supply chain, improving supplier selection processes

168

GRI 205: ANTI-CORRUPTION

205-2Communication and training about anti corruption policies and procedures

Implementation of measures for preventing and revealing corruption

179

205-3 Confirmed incidents of corruption and actions takenConfirmed incidents of corruption and actions taken

179


GRI300 ENVIRONMENT STANDARDS

GRI 302: ENERGY

302-1 Energy consumption within the organization

Keep track and control energy consumption 186302-2 Energy consumption outside of the organization

302-3 Energy intensity

302-4 Reduction of energy consumption

Solutions to monitor and control envergy consumption

188

302-5Reductions in energy requirements of products and services

GRI 305: EMISSIONS

305-1 Direct (Scope 1) GHG emissions

Emissions, effluents and waste 190

305-2 Energy indirect (Scope 2) GHG emissions

305-3 Other indirect (Scope 3) GHG emissions

305-4 GHG emissions intensity

305-5 Reduction of GHG emissions

305-6Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

GRI 307: ENVIRONMENTAL COMPLIANCE

307-1Non-compliance with environmental laws and regulations

Enviromental compliance 198




GRI400 SOCIAL STANDARDS

GRI 401: EMPLOYMENT

401-1 New employee hires and employee turnover Labor attraction 218

401-2Benefits provided to full-time employees that are not provided to temporary or part-time employees

Occupational health and safety 220

401-3 Parental leaveMaternity leave for female workers and male workers with spouse taking maternity leave

226

GRI 403: OCCUPATION HEALTH AND SAFETY

403-1Workers representation in formal joint management–worker health and safety committees

The Human Resource Department of Baoviet Holdings represents the employees in the official occupational health and safety committees between the management and the employees.

227

403-2Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Baoviet recorded no injuries, occupational

diseases, or death related to work.227

403-3Workers with high incidence or high risk of diseases related to their occupation

403-4Health and safety topics covered in formal agreements with trade unions

Occupational health and safety 222

GRI 404: TRAINING AND EDUCATION

404-1 Average hours of training per year per employee

Digital human resources training 230404-2

Programs for upgrading employee skills and transition assistance programs

404-3Percentage of employees receiving regular performance and career development reviews

Employee structure under performance appraisal in 2020

240

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY

405-1 Diversity of governance bodies and employees Labor force in Baoviet 216

405-2Ratio of basic salary and remuneration of women to men

Results of salary adjustment in 2020 242


GRI 406: NON-DISCRIMINATION

406-1Incidents of discrimination and corrective actions taken

Discriminatory treatments and corrective actions taken

242

GRI 408: CHILD LABOR

408-1Operations and suppliers at significant risk for incidents of child labor

Baoviet does not employ child labor to engage in business operations of the business.

243

GRI 409: FORCED OR COMPULSORY LABOR

409-1Operations and suppliers at significant risk for incidents of forced or compulsory labor

Baoviet does not have any cases of labor that is abusive, forced, discriminated or forced.

243

GRI 413: LOCAL COMMUNITIES

413-1Operations with local community engagement, impact assessments, and development programs

Contribute to the development of local communities

246

413-2Operations with significant actual and potential negative impacts on local communities

Plan of Community projects in 2021 257

GRI 416: CUSTOMER HEALTH AND SAFETY

416-1Assessment of the health and safety impacts of product and service categories Baoviet noted that there were no cases of

workers and customers health and safety affected by the use of our services.

258

416-2Incidents of non-compliance concerning the health and safety impacts of products and services

GRI 419: SOCIOECONOMIC COMPLIANCE

419-1Non-compliance with laws and regulations in the social and economic area

Baoviet, including its member companies, recorded no records of any violations of laws/regulations in the social and economic fields

243



GRI G4 INDEX TABLE


MANAGEMENT APPROACH OF FINANCIAL SERVICES SECTOR-SPECIFIC PRODUCT AND SERVICE

1. PRODUCT PORTFOLIO

FS1 Environment & Social policies in business linesEngaging Global Sustainable Development Goals (SDGs) in business operations

63

FS2Environment & Social risk assessing & screening procedures in business lines

Sustainability risk management 116

FS3Surveilance processes for implementation of environmental and social requirement in agreements or transactions

For individual customers, we do not incorporate environmental and social principles in their insurance policy. However, for corporate customers, we introduce special offers to encourage companies to buy insurance package for employees to ensure the employees’ benefits.

FS4Process(es) and procedures for improving staff implementation of environmental and social policies in business lines

Baoviet has issued the Code of Conduct and Professional Ethics, which includes social and environmental responsibilities; Embedded the ESG criteria in the Equity Investment Process and Project Management Process. Thereby, enhancing the role and responsibility of staff in linking the ESG factor in the implementation of professional operations.

FS5Interactions with clients/investees business partners regarding environmental and social risks and opportunities.

Sustainable stakeholders engagement 133

FS6Portfolio proportion by specific region, size (e.g. micro/SME/ large) and by sector of business lines

Organizational profile 26

FS7Monetary value of products and services deliver social benefit in business lines

Service and products designed to deliver social benefits

262

FS8Monetary value of products and services deliver environmental benefit in business lines

Baoviet does not provides products and services that directly impact on environment. In fact, while launching agricutual insurance, we coordinate with local authorities to introduce safe and sustainble production method to farmers. This helps to minimize environmental impacts. For more details see the Safety and health of customers

258


2. AUDIT

FS9Audits coverage and frequency of environmental and social policies, risk assessing implementation

Sustainability report assured by Baoviet Internal Audit Block

20

3. ACTIVE OWNERSHIP

FS10Percentage and number of investors in the institution’s portfolio has interacted on environmental or social issues

Engaging ESGs in investment projects 176


ABBREVIATIONS

282 Sustainability Report 2020 NEW NORMAL - NEW ASPIRATION

No. Abbreviations Interpretations

1 AFYP Annualized First Year Premium

2 ALCO Asset-Liability Management Committee

3 AUM Assets under management

4 BANCASURANCE Selling insurance product through banks

5 SR Sustainability Report

6 FR Financial Report

7 AR Annual Report

8 BVGI Baoviet General Insurance Corporation

9 IFRS International Financial Reporting Standard

10 BOD Board of Directors

11 BOS Board of Supervisory

12 BVB Baoviet Commercial Joint Stock Bank

13 BVF Baoviet Fund Management Companyt

14 BVBF Baoviet Bond Fund

15 BVFED Baoviet Equity Dynamic Open-ended Fund

16 BVPF Baoviet Prospect Equity Open-ended Fund

17 BVH Baoviet Holdings

18 BVI Baoviet Invest Joint Stock Company

19 BVL Baoviet Life Insurance Corporation

20 BVSC Baoviet Securities Investment Fund

21 CAGR Compound Annual Growth Rate

22 CAR Capital Adequacy Ratio

23 CAT Castastrope Modeling

24 CPI Consumer Price Index

25 IT Information Technology

26 AC Audit Committee

27 AGM Annual General Meeting

28 EY Ernst & Young Vietnam Limited

29 EPS Earning per share

30 ESG Environment, Social, Corporate gorvernance

31 FDI Foreign Direct Investment

32 GDP Gross Domestic Product

33 HNX Hanoi Stock Exchange

34 HOSE/HSX Hochiminh City Stock Exchange

No. Abbreviations Interpretations

35 IR Investor Relation

36 IFC International Auditing & Financial Consulting Company

37 KPI Key performance indicator

38 PAT Profit after tax

39 PBT Profit before tax

40 NPL Non-performing Loan

41 ODA Overseas Development Assistance

42 P/E Price-Earnings Ratio

43 PVIF Present Value Interest Factor

44 ISA Department of the Insurance Supervisory Authority

45 RMC Risk Management Committee

46 ROA Return of Assets

47 ROE Return on Equity

48 SCIC State Capital Investment Corporation

49 SDGs UN Sustainable Development Goals

50 VSD Vietnamese Securities Depository

51 SSC State Securities Commission

52 UPCOM Unlisted Public Company Market

53 VAS Vietnamese Accounting Standards

54 VBMA Vietnam Bond Market Association

55 VNSI Vietnam Sustainability Index

56 ESG Environment - Social - Governance

57 FDI Foreign Direct Investment

58 GDP Gross Domestic Product

59 OE Owner Equity

60 HNX Hanoi Stock Exchange

61 HOSE/HSX Hochiminh Stock Exchang

62 LACP League of American Communication Pro-fessionals