ESG Integration

ESG Integration

Environmental, social and corporate governance (ESG) factors are an integral part of VIETNAM HOLDING’s investment analysis and portfolio management processes. The Fund does not invest in companies that do not pass the test of rigorous financial as well as ESG analysis. The board believes that this approach will reduce portfolio volatility and lead to investments that are better positioned than their competitors’ and financially more successful over the long run. In addition to prudent value investment analysis, a sustainability screen is applied to companies involved in controversial business practices and products including nuclear, defense, tobacco, gambling and distilled alcohol.

All ESG issues that impact a company valuation are taken into account. A set of ESG drivers which are expected to shape the competitive and operational environment in each business sector is used to identify and prioritize material issues for every portfolio position or target investment. This includes a comprehensive analysis of risk scenarios including the ESG impact on a company’s balance sheet and earnings potential.

Hung Vuong Corporation

A vivid example of local sustainability leaders in VIETNAM HOLDING's portfolio: