CORPORATE GOVERNANCE

    GOOD CORPORATE GOVERNANCE IS ESSENTIAL

    IFU’s experience as an active participant in the governance of our project companies demonstrates that careful and continuous attention to governance is essential to achieve financial, sustainability and developmental goals

    IFU sees corporate governance as an integral part of Environmental, Social and Governance (ESG) due diligence and a means to promote the rule of law, reduce risks, foster a more robust private sector and contribute to a sustainable and profitable business environment.

    IFU’s objectives in corporate governance of project companies are:

    • To ensure that the corporate governance framework of every IFU project company is fit-for-purpose and incorporates applicable best practices tailored to the enterprise’s size, industry, ownership structure and other characteristics.
    • To promote continuous improvement in the structure and practice of governance in project companies via our roles as shareholders, board member nominees and advisors.
    • To contribute to the development of a corporate governance culture in the developing countries in which IFU operates, through capacity-building, the introduction of best practices in project companies and the demonstration effect our companies serve in society and the broader economy.

    IFU strongly believes that we can best achieve our financial and developmental objectives by being an active investor. As a (minority) shareholder of our project companies, we will actively exercise our rights and responsibilities, including where appropriate through participation in the Board of Directors. IFU’s board member nominees will be empowered and encouraged to share and disseminate our extensive experience in hands-on governance.

    In order for our board member nominees to be prepared, IFU has developed a handbook on board work and corporate governance, which is based on our 50 years of experience. We hope that the handbook can serve as inspiration for others as well.

    View our Policy on corporate governance for investments and Handbook on board work and corporate governance in the download box.