Kyiv, Ukraine, January 31, 2019 —IFC, a member of the World Bank Group, has partnered with Ukraine’s National Securities and Stock Market Commission and the Ukrainian Corporate Governance Academy to promote good corporate governance in the country, including managing environmental and social risks. This is a part of IFC’s broader strategy to help Ukraine’s private companies improve performance, enhance competitiveness, and attract investment.
Ukraine has the Ukrainian Corporate Governance Principles for public joint-stock companies, whose shares are traded on the stock market. However, more and more businesses, including non-listed companies, face the need for an integrated approach to environment, social, and governance issues to attract sustainable investment.
IFC, together with its two partners on this project, will develop and introduce the new National Corporate Governance Code, which reflects the latest developments in terms of integrated environmental, social, and corporate governance. IFC experts will support the introduction of practical and clear guidance on best practices for publicly-traded companies. IFC will bring to the table its global expertise in corporate governance, as well as its extensive experience in emerging markets.
Taras Ivyshyn, Executive Director of the Ukrainian Corporate Governance Academy, said: “We will produce a comprehensive, bilingual document that will explain the principles of corporate governance to all Ukrainian companies. The Code will fully comply with international corporate governance principles, as well as deal with the realities of Ukrainian laws.”
The National Securities and Stock Market Commission will oversee the code’s effective implementation, while the Ukrainian Corporate Governance Academy will deliver awareness-raising events to promote the Code in the Ukrainian business community.
“Corporate governance should not be the privilege only of securities issuers, state-owned companies, or banks. Given the importance of best practices for players from other areas, we will develop a Ukrainian gold standard that can be applicable to all businesses," said Timur Khromayev, head of the National Securities and Stock Market Commission.
“In the medium term, these joint efforts will encourage investors and banks to consider the Corporate Governance Code’s key principles when making financing decisions. We are helping create an improved regulatory framework for environmental, social, and governance practices, which improves company performance. Companies with enhanced corporate governance are better able to attract investment, , thereby enhancing Ukraine’s private sector competitiveness,” said Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova.
IFC’s Promoting Investment through Integrated Environmental, Social, Governance Standards Program in Europe and Central Asia is implemented in partnership with the State Secretariat for Economic Affairs of Switzerland SECO. The program aims to help strengthen the development of the private sector in Europe and Central Asia, including Ukraine. For more information about IFC’s work in the areas, visit: www.ifc.org/sustainability
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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