IFC’s Corporate Governance Methodology provides principles that companies, legislators, regulators, and capital-market gatekeepers can use when developing corporate governance codes, listing rules, and disclosure frameworks. It recognizes that there is no “one-size-fits-all” corporate governance approach for all companies.
Methodology is customized to address unique challenges based on company or ownership types (listed companies, family or founder-owned, financial institutions, state-owned enterprises, funds and small and medium enterprises).
The main tool of the Corporate Governance Methodology is a Progression Matrix to assess how a company performs in the following governance parameters:
The Progression Matrix is organized by four levels of company maturity and complexity and emphasizes the importance placed on ongoing improvements in a company’s governance practices.
The Progression Matrix is accompanied by an Instruction Sheet and a Document and Information Request List detailing the tools, documents and questions to conduct an analysis of a company’s corporate governance framework and practices.
Focus on Climate
As part of its ongoing efforts to promote climate governance standards in the private sector, IFC has developed a Climate Governance Progression Matrix based on the Corporate Governance Methodology. This tool assists Boards of Directors in identifying and overseeing climate-related risks and opportunities. It is accompanied by a tip sheet, Climate Governance: Equipping Corporate Boards to Mitigate Climate Risks and Seize Climate Opportunities, offering guidance to identify and oversee climate-related risks and opportunities.