IFC’s Corporate Governance Methodology has been distilled into the Corporate Governance Development Framework, providing signatory development finance institutions (DFIs) with a common approach to evaluate and enhance governance practices in their investee companies. The Framework facilitates corporate governance due diligence activities when DFIs are co-investors and provides a common reference to engage with client companies and investors in emerging markets on corporate governance issues.
Under the Corporate Governance Development Framework Agreement, the signatories undertake to:
- Integrate corporate governance in investment operations
- Adopt corporate governance procedures and tools to implement the Framework’s methodology
- Conduct corporate governance assessments and develop action plans when appropriate
- Monitor the implementation of corporate governance action plans
- Assign responsibility for the implementation of the Framework
- Make training available to build staff capacity and knowledge
- Collaborate and share knowledge with other signatories
- Report annually to the signatories on the implementation of the Framework
Since its inception, IFC has been a member of the Working Group, guiding and contributing to the Framework’s implementation.
35 signatory DFIs across emerging markets with more than $940 billion in total assets have adopted the Framework