IFC recently joined 28 other development finance institutions (DFIs) – with combined assets of approximately $852 billion – to launch the Corporate Governance Development Framework. This new initiative provides DFIs with a common set of tools to evaluate the governance of their client companies, many of whom work in some of the world’s most challenging markets.

The framework helps DFIs strengthen their due diligence processes and work with their clients to improve weak areas in their corporate governance. By adopting a common approach, signatory DFIs will set consistent standards for corporate governance and common expectations from clients.

Corporate governance helps companies operate more efficiently, gain access to capital, and safeguard against corruption and mismanagement. It makes companies more accountable and transparent to investors and enables them to respond to legitimate stakeholder concerns, such as responsible environmental and social practices. As providers of financing to companies in emerging markets, DFIs play a significant role in promoting good corporate governance across a broad range of regions and sectors. Our hope is that by working together, we can help make corporate governance a cornerstone of sustainable development.

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