By: Carmine Di Noia (OECD On The Level)
Major challenges of recent years – whether climate change, the COVID-19 pandemic or geopolitical conflicts – have had far-reaching impacts on corporations, putting their adaptability and resilience to the test and raising questions as to whether current frameworks for corporate governance remain fit for purpose.
As capital markets and corporate governance frameworks evolve to address these major economic, environmental and societal challenges, the OECD Corporate Governance Committee has decided that it’s time to revise the G20/OECD Principles of Corporate Governance. The Committee is chaired by Japan’s Vice Minister of Finance Masato Kanda and brings together relevant ministries and securities market regulators from more than 50 countries, including all OECD, G20 and Financial Stability Board (FSB) members.
This revision is important to ensure that the Principles continue to serve their purpose of guiding policy makers and regulators from both advanced and emerging market economies in improving their legal, regulatory and institutional frameworks for corporate governance.
To ensure an inclusive process, the Committee needs to hear from all relevant stakeholders to benefit from their experience and expertise as the revision progresses. This is why the OECD has launched a public consultation that will run until 21 October 2022. The public’s input will inform the Committee’s future discussions as it endeavours to finalise the revision in 2023.