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Washington, D.C., September 21, 2011
—IFC, a member of the World Bank Group, will join more than 25 other leading development finance institutions in launching the Corporate Governance Development Framework, a unified approach to help businesses perform better and support sustainable economic development in emerging markets.
IFC's system of evaluating corporate governance risks and opportunities is recognized as the most advanced of its kind. It served as the basis for the Corporate Governance Development Framework and will help development finance institutions assess the quality of corporate governance at the companies they invest in. Institutions that will sign the Corporate Governance Development Framework on Sept. 23, during the World Bank Group/International Monetary Fund Annual Meetings, cover most emerging markets around the world. Together they represent assets of approximately $957 billion.
“IFC’s experience over more than a decade of implementing corporate governance projects has shown that sound corporate governance helps businesses operate more efficiently, manage risks better, and attract investment on better terms,” said William Bulmer, IFC Director for Environment, Social, and Governance. “By adopting a common approach, development finance institutions will help set consistent standards for corporate governance due diligence and common expectations from their clients, raising the bar for corporate governance in emerging markets.”
IFC addresses corporate governance systematically through its investment operations and advisory services. In fiscal year 2011, IFC provided full Corporate Governance Assessments to 33 clients representing more than $1.8 billion in new debt and equity investments across all regions. To improve corporate governance across sectors and countries, IFC delivers targeted capacity-building efforts to organizations and institutions that are change-agents in this field, as well as to individual companies at the pre-investment stage.
Signatories to the Corporate Governance Development Framework will urge global financial institutions to consider the framework for their own investments in developing countries. The signatories aim to raise the private and public sectors’ awareness of the importance of good governance to sustainable economic development. They are expected to implement the framework at their own pace and at a level that suits their institutions. They will also work together to advance the business case for good corporate governance.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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