ICGN launches 4th edition of GGP at annual conference in KL
KUALA LUMPUR: The International Corporate Governance Network (ICGN) has launched the fourth edition of the Global Governance Principles (GGP) to keep in step with the latest regulatory or market-led developments and ensure that the highest standards of corporate governance are upheld.
ICGN executive director Kerrie Warring said following several key elections and developments across the globe over the last 18 months, there is a new policy trajectory in global markets where global institutional investors have considerable holdings and exposure.
“Thus, it is important that we regularly assess and monitor political dynamics, geopolitical tensions, economic stability and systemic risks which ultimately define the corporate governance landscape.
“Due to this ever changing landscape, ICGN has revised the GPPs to help companies and investors navigate this difficult climate and to ensure they meet best practice and evolving standards,” she said at a press conference in conjunction with the ICGN Annual Conference 2017 here today.
Warring said the latest edition of the GPP consists of a range of additions or refinements to the existing principles.
She said most changes reflect continued improvement in thinking about corporate governance practices in a global context that have been identified by the ICGN Secretariat Board and Policy Committees and through its membership consultation.
“It is worth noting that the section on institutional investor responsibilities that had been formerly included on the GGPs has now been removed to avoid potential confusion or overlap with ICGN’s Global Stewardship Principles – which remain ICGN’s core statement on investor stewardship and responsible investment.
“Another broad change is recognition of the role of creditors as a key financial stakeholder and bearer of residual risk in the company.
“The GGPs make considerable reference to the importance of a company’s stakeholders in overall company governance, and as part of company-stakeholder relations, this version of the GGPs takes the initiative to encourage companies to pay appropriate attention to creditor interests in overall company governance,” she said.
Established in 1995, ICGN is an investor-led organisation of governance professionals with members including institutional investors based in 47 countries and collectively responsible for assets under management in excess of US$26 trillion.