Responsible Investing
As a long-term and responsible investor, Dynam is committed to sustainability and our criteria in this respect lie at the heart of our investing approach. We believe that the Environmental, Social and Governance (ESG) issues can influence investment returns and portfolio risks in the long term and are the core of responsible investing. Dynam integrates Environmental, Social and Governance (ESG) principles into its investment decisions and seeks to influence greater corporate governance and best practices in investee companies, including encouraging companies to improve their investor relations as well as their financial and non-financial reporting.
Initiating collaborative actions to promote ESG best practices in Vietnam
Dynam recognises that ESG is a ‘journey’ for many companies in Vietnam, with some at more advanced stages than others. We consider ourselves patient investors and have seen, and indeed played a part in, the positive developments in our portfolio companies on several ESG levels.
Over the years we have conducted workshops and forums to help foster awareness of sustainability principles within Vietnam’s investment community:
2020
ESG conference (online event organised by QuotedData, UK)
2020
Responsible Investing in Vietnam (online event organised by Spectrum, Singapore)
2022
Heading Towards Net-Zero and Corporate Strategies (online webinar)
2023
Vietnam’s Inaugural ESG Investor Conference (organized by Vietcetera and Raise Partners)
As part of our climate change strategy, we support the Paris Agreement and the Task Force on Climate Related Financial Disclosures (TFCD). Dynam is also a member of the Asia Investor Group on Climate Change (AIGCC).
Dynam’s CEO Vu Quang Thinh is an active member of the Vietnam Corporate Governance community. In 2017, he became a member of the National Advisory Council on Corporate Governance under the Vietnam Corporate Governance Initiative (VCGI). He is also a founder member of the Vietnam Institute of Directors (VIOD), a professional organization promoting corporate governance standards and best practice in the Vietnamese corporate sector.
ESG considerations are an integral part of our investment process
1. Exclusion list
Based on the guidelines of the UNPRI and the IFC, we have developed our own exclusion list. We do not invest, or finance companies with activities on our exclusion list.
2. ESG Management System
Our ESG Management System is a customized set of policies, procedures, tools and reporting guidance designed to identify, assess, manage and report on ESG risks and take advantage of opportunities for positive impacts associated with the activities of portfolio companies.
The ESG Management System has been developed to:
- integrate ESG issues into every single step of the investment process: initial screening, due diligence, investment decision and investment monitoring
- provide a framework for monitoring and reporting on ESG aspects to stakeholders
- work in partnership with our portfolio companies to help them identify and implement ESG opportunities, creating sustainable enhancement to their overall financial performance.
3. Active ownership though a Dedicated Company Engagement Programme
We engage portfolio company executives through face-to-face meetings as part of our Company Engagement Programme. This focuses on improving a portfolio company’s financial performance and emphasizing the necessity to systematically implement ESG factors. By enhancing our knowledge on specific issues, we are able to support investee companies in both financial and ESG aspects: from influencing better governance to helping them take positive steps toward improving sustainability policies, practices and performance. This not only helps us in our investment decisions but also adds value by influencing positive change in the portfolio companies.
4. Voting
As a discretionary investment manager, where Dynam has been granted by its clients the authority to vote the securities held in client portfolios, the objective is to vote in the best interests of our clients. In the absence of any other guidance, or in any instance whereby voting authority has been delegated by the client in writing, we will direct votes guided by our Governance and Voting Policy, in a manner consistent with the investment interests, objectives, and particular preferences, if stated or known, of our clients.
Read more about our Governance and Voting Policy.
5. Building a climate-smart strategy
According to the United Nations Framework Convention on Climate Change (UNFCCC), Vietnam is one of the five countries most vulnerable to climate change. Focusing solely on the Vietnamese market, we are strongly aware of climate-related risks and opportunities presented to the country, investee companies and thus our investing in the long term. We pay particular attention to manage the climate risks of the portfolio by keeping track of the portfolio’s total carbon emissions, analysing the transition risks of climate-sensitive industries, and helping our companies to do more on reporting their carbon emissions.
6. Voluntary measuring and reporting
Our aim in relation to Responsible Investing is to: “Do more, measure more and report more”. We measure and publicly report the Company’s carbon footprint, our estimated portfolio-level carbon footprint, and assess the performance of the portfolio’s investee companies against the UN Sustainable Development Goals.
Read more about our Responsible Investment Policy.