Mekong Capital Sustainability disclosure

Sustainability
Disclosure

Mekong Capital defines Sustainability, in line with the Company’s operation, as any activities related to or affect Environment and Social (E&S) aspects.

Our Belief in Sustainability

Leveraging ontological leadership and the Vision Driven Investing (“VDI”) framework for empowering other leaders and organizations to fulfill their visions for sustainability, leaving the earth in a sustainable balance for our children and future generations.

Our E&S Mission

To contribute to the sustainable development of companies that the Funds invest in by effectively managing E&S risks and impacts associated with the Funds’ investments.

Key factors taken into consideration include:

Environmental factors:

  • Climate change
  • Pollution prevention & control
  • Biodiversity
  • Land acquisition Social factors
  • Occupational health & safety
  • Community health & safety

Social factors:

  • Labor standards
  • Working conditions
  • Gender equality
  • Human rights
  • Indigenous people
  • Culture heritage

Our E&S Policy

Maximizing positive E&S impacts and avoiding, minimizing, and mitigating negative E&S impacts and risks require careful governance and proactiveness by Mekong Capital and by the Funds’ investee companies. The E&S Policy defines Mekong Capital’s commitments in this regard and explains how they are implemented. It is applicable to all current and future investments of Mekong Capital.

Standards We Refer to

  • National and Local Laws.
  • IFC’s E&S Performance Standards.
  • ADB’s Social and Safeguard Requirements.
  • World Bank Group EHS Guidelines.

How we manage E&S impacts and risks

Mekong Capital’s Investment Committee will factor in sustainability 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.

Remuneration disclosure

Mekong Capital has a remuneration policy, which includes appropriate working conditions for its personnel. Mekong Capital employees are aware of their roles in performing in line with Environmental and Social Management System of Mekong Capital which ensures all sustainability risks are routinely monitored and mitigated.

Historical impact reports

Mekong Capital's historical impact report