Mekong Capital’s Investment Committee will factor in E&S risks in the decision-making process by:
- Defining the investment strategy, incorporating E&S impacts and risks;
- Overseeing and approving investments to ensure E&S risks has been considered in the investment decisions;
- Monitoring the performance and impact of E&S on the returns to the fund; and
- Updating, as required, the investment strategy to ensure that E&S risks in the underlying investments of the Funds under management are in line with the overall investment strategy.
The following E&S due diligence process is integrated into the investment decision-making process:
- Screen proposed deals against Mekong Capital’s exclusion list;
- Assign a categorization based to each deal that passed the screening process to properly manage E&S risks;
- Carry out proper E&S due diligences to identify the gaps between companies’ practices and Mekong Capital’s E&S Policy and Standards;
- Propose E&S corrective action plans to close the identified gaps; and
- Ensure that the portfolio companies will agree to operate in line with Mekong Capital’s E&S Policy and Standards.
In the post-investment phase, Mekong Capital ensures that
- All investee companies will fulfill the corrective action plans and are inspired to continuously enhance their E&S performances.
- Annual E&S health checks are conducted at all investee companies.