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A core component of Mekong Strategic partners strategic vision is our firm conviction that our most valuable long-term asset is our market reputation for achieving dynamic and sustainable returns through investments that create value, whilst promoting socially and environmentally responsible development. We place into action this vision by incorporating environmental, social and governance (ESG) criteria into our investment decision making and ownership practices that directly influence investee companies to enhance performance across these areas.
We ensure effective management of ESG issues by embedding ESG considerations into all steps of the investment process from pre-screening through to future exits. To accomplish this we review all target investee companies against the IFC Exclusion List for compliance with host country social and environmental requirements. We also incorporate the IFC’s performance standards as a key part of our guiding framework for ESG evaluation. Finally, our process integrates ESG considerations of investment into all partnership agreements.
Our approach to management of ESG issues includes evaluating and managing risk. Through the process of assessing an investment, we categorize each investment according to its potential ESG risk profile at an early stage in the decision making process. Based on this categorization, we assign the proper level of ESG due diligence. Throughout the period of our investment we continue to evaluate the ESG performance of our investee companies on an ongoing basis and conduct regular monitoring visits. Our investee companies shall also report ESG issues and improvements on a quarterly basis and we in turn, reports to our investors on a quarterly and annual basis.
Through effective embedding of ESG sustainability policies and monitoring of our companies and their investments, we are able to identify areas that may require attention and further enhance the social and environmental return of our investments. This enables us to find ways to seek out continual improvement and continued excellence in our processes and approaches to sustainable investing.