Responsible investing is integral to our business. Adopting a long-term and sustainable mindset lets us measure value in years rather than days or months. Therefore, we strive to meet then exceed our corporate social responsibility (CSR) commitments by fusing ESG analysis into our investment process.
Equally, the standards we set for ourselves apply to the companies in which Kenno invests. As such, we seek sustainability-driven governance and ethical business practices in our target holdings and those already in the portfolio.
A worthy example of a company whose sustainable business approach creates long-term value is Vietnam’s Moc Chau Milk (MCM).
“We like how MCM engages in long-term partnerships with local farmers by providing support and ensuring sustainable output from their dairy cattle,” notes Kenno’s Senior Analyst, Dung Nguyen.
According to the General Department of Vietnam Customs, Vietnam’s dairy herd numbered 375,000 cows in 2021, with fresh milk production of over 1.2 million tons. Yet, this equates to only 42% of domestic dairy demand. As such, Vietnam must import from countries such as Australia and New Zealand. However, MCM can fully self-supply its operations with fresh milk from a herd of around 26,000 cows.