Good corporate governance helps companies operate more efficiently, improve access to capital, mitigate risk, and safeguard against mismanagement. It makes companies more accountable and transparent to investors and gives them the tools to respond to stakeholder concerns.
Governance for Sustainability
In 2018, IFC updated its Corporate Governance Methodology to include the governance of environmental and social (E&S) risks, following findings from an internal study of IFC’s investment portfolio that demonstrated a well-functioning corporate governance framework is essential for the implementation of E&S practices. In 2023, IFC developed a corporate governance approach specifically tailored to managing and overseeing climate-related risks and opportunities. We have also offer guidance to boards and management teams on how to effectively oversee gender-based violence and harassment risks in their operations.
Corporate governance is one of the pillars of IFC’s sustainability efforts. Using IFC’s Corporate Governance Methodology, we conduct corporate governance analyses on every investment transaction, evaluating client companies’ corporate governance risks and opportunities.
Learn more about IFC’s Corporate Governance Methodology and access tools specifically tailored for emerging markets that help evaluate and improve the corporate governance of a company.
Areas of Focus
IFC delivers targeted corporate governance support to clients and stakeholders, leveraging our expertise as an investor in emerging markets. We advise on how to improve corporate governance practices, including specialized advisory services on board effectiveness, diversity, and family business governance. We also work with regulatory institutions and governments to improve corporate governance laws, regulations, codes and listing requirements.
Building ESG Capacity
Learn more about IFC’s ESG advisory work to support clients, institutions and regulators in ESG risk management and performance.