- G20 leaders have officially endorsed global corporate governance principles that now include sustainability considerations.
- The Organization for Economic Cooperation and Development (OECD) reported this development, which aims to boost investor confidence and financial stability through baseline corporate governance standards.
- The updated principles cover guidance on sustainability considerations, climate-related risks and opportunities, shareholder rights, institutional investor roles, and disclosure.
- The revisions promote the disclosure of sustainability-related information and clarify board responsibilities regarding sustainability issues.
- They also recommend dialogue between companies, shareholders, and stakeholders on these sustainability matters.
- While most jurisdictions encourage sustainability-related disclosure, only a few have regulatory provisions on ESG ratings and index providers.
- The principles aim to help companies access capital markets financing, protect investors, and enhance corporate and economic resilience, reflecting recent changes in corporate governance and capital markets.
Read more from the Investment Executive, here: https://www.investmentexecutive.com/news/from-the-regulators/climate-risk-added-to-oecd-corporate-governance-guidance/
And view the full updated principles here: https://www.oecd.org/corporate/revised-g20-oecd-principles-corporate-governance.htm
