Our Shared Commitments

Author: Tran Dang Thanh Phuong, E&S Manager, Mekong Capital

April 16th, 2024

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The moment my 8-year-old son told me about FairTrade from a school project, when he showed me a book he was reading where characters shared sustainable farming practices instead of using pesticides and chemical fertilizers, or when we watched a YouTube video together about sustainable coffee farming and animal welfare practices at civet coffee farms, I realized that concepts like sustainable development, environmental protection, and sustainable supply chain practices (which I often refer to as Environment and Society, or “E&S”) are not just technical terms I use in my daily work. They represent a shared understanding and commitment from all of us – individuals, families, communities, businesses, governments – towards the wellbeing and long-term development of our planet. This is strongly reflected in my work at Mekong Capital.

Tran Dang Thanh Phuong, E&S Manager, Mekong Capital

Nearly a year ago, when I first joined Mekong Capital, what I heard from my supervisor was that, E&S represents shared commitments between Mekong Capital and its investors, as well as between Mekong Capital and the investee companies we partner with. We understand that investors who entrust the funds to us, are dedicated to responsible and sustainable investment. We respect this and aim to support them in fulfilling these commitments. After all, they also underpin the values of Mekong Capital and its employees, ensuring we create positive value for the community and the environment. We strive to mitigate any negative impacts from our investment activities. To accomplish this, we seek to collaborate with companies that understand and share these responsibilities in their business operations.

In previous roles, I often encountered partners who viewed E&S as an obligation that businesses “must” comply with to operate or to receive investment. Therefore, the practice of E&S often works as (1) accepting compliance to avoid penalties, or (2) finding various ways to cover up, resist, or just do for the sake of it. Consequently, this led to ineffective E&S practices that did not generate clear value. However, with Mekong Capital’s approach, businesses see the benefits of practicing E&S practices to their business operations, to the community and society. Then they willingly adhere to E&S commitments with Mekong Capital.

Benefits of Practicing E&S

I understand that not all businesses are in the same position or progress at the same pace in the journey of implementing E&S practices. Therefore, Mekong Capital and our partners are committed to working together to develop, finalize, and improve E&S practices in businesses, aiming towards fulfilling our shared commitments.

I was thrilled to learn that a company in our portfolio has seen clear benefits from practicing Environment & Social (E&S) standards. These benefits include understanding and maintaining legal compliance, saving costs on renovations and supplements through proactive E&S management, and attracting new investors with ease. Therefore, the company consistently prioritizes E&S practices and remains receptive to learning and improving its E&S management. This approach is a key part of their sustainable development strategy. What’s even more exciting is witnessing other companies in our portfolio become increasingly proactive in understanding and integrating E&S into their operations, and developing E&S strategies that align with their business vision.

I’m confident that with a mutual understanding and dedication to E&S, Mekong Capital and our partners can grow responsibly and sustainably. Personally, I’m eager to fulfill my commitment through my role at Mekong Capital. I plan to contribute to the community’s prosperous development and the preservation of a quality living environment, not just for the present generation, but for future ones as well.

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Mekong Capital makes investments in consumer-driven businesses and adds substantial value to those companies based on its proven framework called Vision Driven Investing. Our investee companies are typically among the fastest-growing companies in Vietnam’s consumer sectors.

In January 2022, Mekong Capital founder Chris Freund published Crab Hotpot, a story about a bunch of crabs who found themselves stuck in a boiling pot. The colorful cover of “Crab Hot Pot,” complete with expressive cartoon crustaceans, looks like a children’s tale at first glance. But as one continues reading, it becomes clear that the work has an important message about organizational transformation, leadership and focusing on a clear vision for the future.

The book is available on Tiki (Hard copy): bit.ly/38baF8a (Vietnamese) and Amazon: amzn.to/3yWunzG (English)