The Swiss State Secretariat for Economic Affairs (SECO), INSME Member, together with the International Finance Corporation (IFC), announced on March 3, 2022, a new program to spur private sector investments in developing countries by teaching environmental and social risk management through corporate governance practices. The new Integrated Environmental, Social and Corporate Governance (ESG) Program will support private sector entities in several countries in Africa, East Asia and the Pacific, Latin America and the Caribbean, and South Asia with advice regarding corporate structures – such as controls and board oversight – to promote effective decision-making and E&S risk management.
Originally piloted by IFC and SECO in Eastern Europe and Central Asia, the Program will support policy makers and firms from both the financial and real sectors in addressing critical ESG topics, including effective E&S risk management and systems; disclosure and transparency; climate risk and mitigation; and gender inclusion issues. The Program builds on more than two decades of collaboration between IFC and SECO in successfully advancing corporate governance and sustainable finance in 40+ countries, where 75 good practice codes and regulations have been adopted. To date, IFC and SECO programs have resulted in companies attributing improved ESG practices to $3.7 billion in financing, and to a value of $4.8 billion in sustainably managed funds.
The Program will help local regulators, financial institutions, investors, and companies manage ESG risks and bottlenecks, using IFC’s internationally recognized Performance Standards and Corporate Governance Methodology.
Read the full press release here.