Dragon Capital: Major improvement in ESG disclosures in Vietnam
Dragon Capital, Vietnam’s largest fund manager, has seen significant improvements in carbon emission disclosures and other ESG issues from investee companies following stakeholder engagement.
In 2024, Dragon Capital engaged with all companies in its top 80 investment universe companies, including 36 ESG focused engagements. These covered key issues such as sustainability reporting, climate change adaptation, human rights and wider societal impacts. The purpose of these engagements was to deepen Dragon Capital’s understanding of investee companies’ ESG performance, as well as to open opportunities for the firm to communicate investor expectations. In several cases, deeper discussions were conducted with investee companies, where Dragon Capital shared best practices and roadmaps for improving ESG standards.
To strengthen this process, Dragon Capital has also invested in the internal tools and frameworks. Originally introduced in 2021, the proprietary internal system Integrated Resources & Intelligence System (IRIS) was further enhanced in 2024 to support and enhance the firm’s research capacity and investment monitoring, including ESG efforts. IRIS serves as a powerful tool for internal communication and collaboration, while also providing robust international capabilities for data analysis and management. It plays a key role in monitoring the ESG performance of investee companies, systematically documenting engagement activities, and maintaining comprehensive records of voting decisions. By centralising this information, IRIS helps ensure transparency, consistency, and accountability throughout the investment lifecycle.
Further, Dragon Capital recognises the growing expectations from stakeholders regarding ESG standards, many of which go beyond the International Finance Corporation framework it has followed since 2016. In response, the firm undertook a comprehensive revamp of its ESG management system (ESG MS) in 2024. This update marks a significant evolution from the previous 2016 version, reflecting both industry advancements and stakeholder feedback. Notably, the updated ESG MS includes detailed engagement and escalation plans, enabling more structured and meaningful engagement activities.
Following comprehensive engagement, more investee companies are disclosing ESG information, including Greenhouse gas data, and implementing improvements in corporate governance.