2024 Letter To CEOs From East Capital CIO and East Capital Group CIO

Every year we send out a letter to the CEOs of East Capital portfolio companies. Below is the letter sent out in November 2024.

We are reaching out to you as shareholders in your company. Since our start in 1997, we have been working for positive change through active and engaged ownership. Over the past 27 years we have prioritised meaningful dialogue and long-term collaboration with our portfolio companies to create lasting value.

East Capital Awards

Every year, on our November 9th anniversary, we honour four companies with East Capital Awards to celebrate outstanding achievements and contributions. This year, our anniversary holds special significance as it coincides with the 35th anniversary of the fall of the Berlin Wall – a historic moment that transformed Europe inspiring unity and progress. With this in mind, we are delighted to shine a spotlight on this year’s winners for 2024: Best IPO – Optima Bank (Greece), Best Growth – FPT Corporation (Vietnam), Best Corporate Governance – Qifu Technology (China), and Discovery of the Year – Gravita (India). 

Key Themes for the year: climate risks and elections

2024 has marked the warmest year on record, with severe and costly weather extremes around the globe, serving as a stark reminder of the escalating urgency of climate change and its devastating impact on ecosystems. It is also notable as a major election year, with national elections taking place in countries representing 49% of the global population. While these elections offer opportunities to shape the future, we are in a pivotal period marked by increased geopolitical risk, adding complexity to the global landscape and influencing both policy and investment decisions.

The challenges we face are substantial, yet they also underscore the importance of our collaborative efforts to build a more sustainable world through responsible investing. Two pressing issues have risen to the forefront of our agenda: nature and digital resilience.

We are early adopters of the TNFD (Task Force on Nature-related Financial Disclosures) and strongly encourage you to consider doing the same, if your business has material nature-related impacts and/or dependencies. Placing nature and biodiversity high on the agenda for both board and management is essential, and transparent disclosures are just the first step in addressing these complex challenges.

Today, it is fair to say that every company is, in effect, a data company. With the rise of digitalisation and artificial intelligence, companies can leverage new technologies at an unprecedented scale, but they are also increasingly at risk. Six in ten organizations globally were affected by ransomware in 2023 (BofA). Adequate cyber risk management, ethical AI practices, and digital resilience have become essential skills in the boardroom to safeguard operational and information technologies effectively.

We believe that in this blend of volatility, resilience, and innovation lies the catalyst for transformative change. We invite you to join us in contemplating these shifts and welcome any thoughts or reflections you may have. Our door is always open for discussion. We look forward to continuing our dialogue.

Sincerely yours,