VietNam Holding Asset Management (VNHAM) is a pioneer in ESG and responsible investment in Vietnam. VNHAM is committed to actively contribute to sustainable development as a company and investor.
To determine which sustainability topics are particularly relevant to VNHAM, a materiality analysis has been performed. Based on this analysis, as well as our mission and history, we have developed a sustainability strategy to further contribute effectively to local and global sustainable growth. VNHAM has specifically taken into account the Sustainable Development Goals (“SDGs”) adopted by the UN in 2015 as a framework for setting targets. The following core areas define our sustainability strategy:
1. Corporate responsibility
2. ESG Integration and Management
3. Active ownership and stakeholder Engagement
1. Corporate Responsibility
VNHAM is committed to high ethical standards in all its business dealings, and ensures that all its activities are conducted fairly and with due skill, care and diligence.
VNHAM appointed a member of the management team as sustainability officer. The sustainability officer is responsible for the implementation and monitoring of the sustainability strategy. The person in charge is in particular responsible for the oversight and control of the ESG integration into the investment process. The sustainability officer ensures also that adequate rules, guidelines and control functions are in place to meet all regulatory standards. VNHAM does not offer variable ESG-linked compensation awards to employees. However, the remuneration for the management of the sustainability strategy is included in the fixed remuneration package of the sustainability officer.
Social Responsibility – Our employees
For VNHAM, motivated, competent, and service-oriented staff members are the key to satisfied stakeholders and thus to the long-term success of our company.
Equal opportunity and diversity
We respect the opinions of others and their personal dignity, the privacy and personality rights of each individual. All of our staff are offered the equally opportunities. A diverse, discrimination-free working environment is essential for the health and well-being of all staff members. These principles apply not only tor existing staff members but also to new hires likewise. We collaborate with women and men of varied origins, nationalities, culture, religion and ethnicity. We do not tolerate any discrimination on the basis of sexual orientation and reject personal harassment and abuse.
Talent Management & continuous education
We regularly offer in-house training and where meaningful support staff members with advanced external training within the scope of their responsibilities.
2. ESG integration and management
The most impactful part of VNHAM’s sustainability strategy is the active ESG integration in investment management processes. VNHAM recognizes the value of considering non-financial data in investment management processes from a sustainability risk and opportunity perspective. VNHAM firmly believes that the consideration of ESG information leads to better informed investment decisions and thus enhanced decision-making processes.
Since 2009 the firm considers ESG as part of the investment analysis. Ever since, VNHAM constantly enhances its engagement in this regard to stay in line with international best practices and regulatory duties. The investment team meets quarterly to discuss the latest developments. Systematic inputs from external consultants support VNHAM’s dynamic and forward-looking approach.
At VNHAM, ESG is holistically integrated in all parts of the investment analysis.
In the initial phase, VNHAM applies exclusion criteria in order to tailor the investable universe according to the core believes of VNHAM. VNHAM refrains to invest or advise clients to invest in companies that produce or distribute Tobacco products, Alcohol, Weapons, or engage in illicit gambling activities and nuclear energy generation.
The shortlisted companies will be further screened for controversial business practices and products. VNHAM advises clients to not invest in companies that do not uphold corporate governance standards and international standards on human rights.
Subsequently, selected companies will undergo a rigorous ESG due diligence process. In order to assess the ESG risk and opportunity profile of a company, the sector specialist will consider particular ESG criteria that are relevant in the final investment recommendation. The ESG criteria used in the investment analysis are selected and monitored in collaboration with an external ESG consultant.
During the investment phase, the ESG performance of companies are closely monitored. Through an Engagement Program, VNHAM is in a direct dialogue with investee companies.
3. Active Ownership and Stakeholder Engagement
VNHAM organizes visits and discussion with all investee companies several times a year. The close relationship with the directors and board members of the investee firms, enables VNHAM to actively engage in a dialogue regarding the company’s ESG practices. At the core of the dialogue is the company’s stand on material ESG topics. We motivate companies to implement international best practices and agree to binding – and if possible – quantitative commitments.
We always aim to create a mutual beneficial outcome and support companies in developing and enhancing their ESG practices.
VNHAM’s Investment Analysts are encouraged to attend AGM’s, and actively execute proxy voting rights. Our investment analysts also participate in pre-AGM meetings with other investors to prepare focal topics to pick up with the firm’s management. These sessions include in particular corporate governance issues.
External Commitments and Partnerships
VNHAM works together with selected partners and specialist in the field of sustainability and ESG investing and commits to relevant industry standards.
UN Principals of Responsible Investment
VNHAM is a signatory to the UN Principals of Responsible Investment. With this commitment, VNHAM agrees to the follow the 6 PRI principles:
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
UN Global Compact
VNHAM has committed to uphold the UN Global Compact Principles and operate responsibly, in alignment with universal sustainability principals.