Washington, June 26, 2024: The International Finance Corporation (IFC), a member of the World Bank Group, and the Climate Governance Initiative signed a cooperation agreement focused on promoting robust climate governance in companies across emerging markets and developing economies. The partnership was formalized today at the Climate Investment Summit, the flagship event of London Climate Action Week held at the London Stock Exchange.
Amid a global climate crisis driven by escalating greenhouse gas emissions, there is an overwhelming need for businesses to accelerate their climate response efforts to meet the Intergovernmental Panel on Climate Change (IPCC) target of a 50% reduction in global emissions by 2030.
"We are excited to partner with the Climate Governance Initiative on this critical agenda," said Tania Kaddeche, IFC ESG Sustainability Advice & Solutions Director. "Elevating climate corporate governance standards in developing markets is not only a global imperative but also a core activity under the World Bank Group's mission to end extreme poverty and promote shared prosperity on a liveable planet. We are committed to broadening our support for board directors to help them mitigate climate-related risks, seize investment and innovation opportunities, and enhance private sector resilience against climate change."
Company boards often lack the skills or leadership necessary to transition and transform at the necessary pace to address climate risks and opportunities. The role of non-executive directors (NEDs) is crucial, yet they often face challenges in accessing adequate resources, training, and peer networking to foster informed discussions and decisions on this evolving and complex issue.
"The IFC and the Climate Governance Initiative are natural partners. They share our belief in the potential of the private sector, led from the boardroom, to develop an innovative, ambitious global response to climate change that keeps the world's eyes on the goals of the Paris Agreement," highlighted Alexandra Bolton OBE, Director of the Climate Governance Initiative. "The IFC will help us expand our network - which already covers one-third of the world's carbon emissions – and will help us understand the levers for change in developing countries."
Operating through a network of 32 chapters across 73 countries, the Climate Governance Initiative works to place the climate emergency at the forefront of global boardroom agendas. It provides vital support to develop leadership skills, practical resources for boards and the opportunity to share best practice across a global network of 100,000 climate-conscious board directors.
IFC, through its corporate governance activities, has tailored climate governance guidance to address the specific needs of emerging markets and developing economies. This guidance complements IFC's broader environmental, social and governance efforts by offering detailed advice to companies on how to integrate climate considerations into board deliberations, strategies, and systems to monitor climate-related risks and opportunities.
Through their collaboration, IFC and Climate Governance Initiative will support companies in these markets to develop strong governance processes to effectively manage climate risks and opportunities, building on global frameworks, international best practice and the Principles for Effective Climate Governance developed by the World Economic Forum.
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About the International Finance Corporation (IFC)
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the Climate Governance Initiative
The Climate Governance Initiative is a non-profit dedicated to mobilising boards to accelerate the transition to net zero and build climate resilience. We develop and support a global network that empowers and mobilises board directors on every continent to take climate action by enhancing their knowledge and skills in climate governance. We are a rapidly growing global network with Chapters in over 70 countries worldwide, reaching more than 100,000 chairs, non-executive and independent directors. Learn more about the Climate Governance Initiative on our website.
