People &
Planet

Elevating Vietnam’s Middle ClassHealth & WellbeingEducation & People DevelopmentHuman Rights, Labor Standards & Gender EqualityIndustry, Innovation & InfrastructureClimate ActionResponsible ProductionLife on LandAnimal WelfareESG Policies & Processes

Mekong Capital has always had a strong ESG focus since its first fund in 2001. The involvement of various development finance institutions as our LPs and partners did help us at various times to articulate clear ESG standards and goals. More recently we have aimed to align our efforts with  the U.N. Sustainable Development Goals (SDGs) and our personal purposes and commitments in life, which we seek to fulfill through our work at Mekong Capital.

ESG Policies and Processes

Starting from our awareness and comprehension of sustainable development issues and the goal of maximizing positive impacts through our investments, aligning with the commitments on responsible investment that we have with our investors and portfolio companies, Mekong Capital acknowledges the importance of integrating environmental and social aspects in our investment process to safeguard business value, address emerging E&S challenges and enhance shareholder value across our investment portfolio – ultimately contributing to meaningful, positive outcomes for both people and the environment.

Mekong Capital is committed to:

1. Doing no significant harm to people and the environment. Avoiding, minimizing and mitigating negative E&S impacts of its activities on people and the environment through the implementation of an E&S Management System (ESMS) aligning with the applicable legislations and international recognized standards, including the Performance Standards by the International Finance Cooperation (IFC PSs)

2. Maximizing the opportunities for E&S benefits through all Mekong Capital’s activities, as well as the Funds’ investment to ensure that it contributes to society in an impactful and sustainable way

3. Complying with all national and local laws and regulations and other E&S requirements applicable to all investments (hereafter referred to as the “Applicable Requirements”), including but not limited to, the Exclusion List, the IFC PSs

4. Investing appropriate time, resources and efforts to implement the ESMS effectively and fulfil all E&S obligations and commitments shared with Investors, including maintaining an in-house E&S team responsible for operationalizing this Policy and meeting commitments made to Investors. We also support investee companies in building their own E&S capacity when needed

5. Driving the management of E&S risks and corporate governance in its investments to ensure that the Funds’ investee companies carry out their businesses in compliance with the Applicable Requirements on an ongoing basis:

  • Conducting thorough E&S due diligence assessment prior to making any investment decisions and ensuring that all potential investments are reviewed against the Applicable Requirements
  • Financing projects only when they are expected to be designed, built, operated and maintained in a manner consistent with the Applicable Requirements
  • Taking appropriate measures and requiring the Funds’ investee companies to take measures to avoid, minimize, mitigate and/ or compensate for E&S risks and impacts arising from their activities
  • Ensuring that management and shareholders of investee companies understand and share E&S commitments made by Mekong Capital and/or the Funds
  • Managing its investment portfolio with integrity and, in so doing, will seek to ensure that its participation adds value and avoids reputational risks for ourselves, our Funds, and our Investors
  • Engaging actively with investee companies to better understand their E&S issues and support them to improve their performance, especially in areas of material concern

6. Making timely disclosures of investment-related E&S information in accordance with the applicable legal and investor requirements

7. Maintaining an accessible external communication and grievance mechanisms to address stakeholder concerns.

8. Conducting ongoing monitoring and reporting on E&S performance and impacts

9. Maintaining and continuously improving the ESMS to effectively implement this Policy

E&S Management System 

An ESMS in alignment with globally recognized standards has been developed and maintained by Mekong Capital to operationalize our E&S commitment:

As guided by the ESMS, E&S aspects are integrated into each step of the investment process, to identify and manage E&S risks associated with the portfolio on an ongoing basis:

Stakeholder Engagement 

Building strong relationships with key stakeholders of our funds is important to successfully managing the impact of E&S risks of our investment activities and fulfilling our E&S commitment. It is also an opportunity for exchanging knowledge and good practices and strengthening and upholding our E&S system and standards.

  • Portfolio companies: Mekong Capital recognizes the need for ongoing engagement with our investee companies to ensure shared commitments are met, to provide technical support as needed, and to promote good management practices for sustainable business development. As such, apart from business-related engagements and discussions between investment teams and investee companies, for E&S aspects, the E&S Manager will hold regular dialogue, conversations with E&S representatives of investee companies
  • Investors: By attending E&S trainings and seminars organized by our investors and actively consulting with investors as and when needed, we enhance our knowledge and expertise and understand E&S trends that are of focus to our investors and in the industry.
  • Peers and Experts: We acknowledge the benefits of learning from peers and industry experts where it is suitable and relevant; we attend E&S events, workshops, and conferences where E&S topics are discussed to exchange knowledge and good practices, gain insights as well as to catch up with new trends.

External Communication and Grievance Mechanism 

At Mekong Capital, we maintain an E&S external communication and grievance mechanism to timely and sufficiently address any inquiries, requests or feedback from external stakeholders towards its investment activities.

If you have any inquiries, requests, or feedback, please contact us.

Elevating Vietnam’s Middle Class

Read more