Peru
May 29, 2019 - Lima, PERU. Lima Metro Line 2 under construction. Facilities of the main station for maintenance and service of Metro trains. Perú Lima Metro. Line 2 proyect. Photo: Yayo López / World Bank
The Integrated Environmental, Social, and Governance Project in Peru aims to support the development of a range of market mechanisms to promote environmental, social, and governance (ESG) standards and assist firms in the real and financial sectors in improving their ESG performance.
Regulatory Level
The project aims to strengthen the regulatory (including voluntary) environment for ESG to improve the regulations and support their implementation to create a level the playing field for companies across the market.
Market Level
The project aims to strengthen the capacity of local intermediaries and industry associations to improve their ability to promote, train, and advise on ESG standards, focusing on the governance of environmental and social (E&S) practices and ESG risk management in the financial sector, capital markets, and priority industries in real sector.
Firm Level
The project provides in-depth technical advice to firms to improve their ESG performance, including through the following:
- Mobilizing financial institutions and investors to integrate consideration of ESG risks into their investment operations through the adoption of E&S risk management practices;
- Supporting real sector companies and financial institutions to improve their corporate governance focusing on ESG, including extending transparency and disclosure practices beyond financial reporting into sustainability reporting, establishment of E&S management systems, and governance of stakeholder engagement (mechanisms to address stakeholder concerns and grievances).
In a previous multiyear corporate governance project, IFC provided a valuable contribution to raising corporate governance standards through comprehensive regulatory reform. The project (jointly with the International Bank for Reconstruction and Development) supported six corporate governance-related laws and regulations that were subsequently adopted:
- Regulation on Corporate Governance and Integrated Risk Management (Reglamento de Gobierno Corporativo y la Gestión de Riesgos; in Spanish);
- Resolution on Independent Directors (Lineamiento para la Calificación de Directores Independientes; in Spanish);
- Regulation on Corporate Sustainability and ESG Reporting (Reporte de Sostenibilidad; in Spanish);
- Law for the Modification and Strengthening of Municipal Microfinance Institutions (Ley que Modifica y Fortalece el Funcionamiento de las Cajas Municipales de Ahorro y Crédito; in Spanish);
- Project for Modification of the Regulation on Selection of Municipal Microfinance Institutions board members (Proyecto que Modifica el Reglamento para la Elección de los Representantes al Directorio de las CMAC; in Spanish);
- Guidelines for the Management of Boards and Directors of Companies under Peru SOEs Corporation (FONAFE) Authority (Lineamiento para la Gestión de Directorios y Directores de las empresas bajo el Ambito de FONAFE; in Spanish).
IFC supported the development of local capacity in a wide range of local market intermediaries to provide ongoing corporate governance trainings and services to the market. It led the creation and further consolidation of the first corporate governance center in Peru with the University of Lima. The project was also active in strengthening the capacity and independence of four other intermediaries (Lima Chamber of Commerce, Universidad de Piura, Perucamaras, and Campoverde) in business development and technical delivery.
IFC promoted the adoption of better corporate governance practices in firms directly and through partners. It improved the corporate governance practices of 47 companies through providing in-depth support (14 companies reached directly by IFC and 42 companies reached by partners). Partners also reached 461 firms through providing trainings, and 45 of those reported improvement in their corporate governance practices. Clients reported implementing changes in areas such as board procedures, shareholder activity, risk governance, and audit.
- Peruvian Central Bank
- Lima Stock Exchange
- Stock Exchange Superintendency - Superintendencia de mercado de valores (in Spanish)
- Ministry of Economy and Finance
- Ministry of Environment (Ministerio del ambiente; in Spanish)
- Regulation on Corporate Governance and Integrated Risk Management (Reglamento de Gobierno Corporativo y la Gestión de Riesgos; in Spanish)
- Resolution on Independent Directors (Lineamiento para la Calificación de Directores Independientes; in Spanish)
- Regulation on Corporate Sustainability and ESG Reporting (Reporte de Sostenibilidad; in Spanish)
- Law for the Modification and Strengthening of Municipal Microfinance Institutions (Ley que Modifica y Fortalece el Funcionamiento de las Cajas Municipales de Ahorro y Crédito; in Spanish)
- Project for Modification of the Regulation on Selection of Municipal Microfinance Institutions board members (Proyecto que Modifica el Reglamento para la Elección de los Representantes al Directorio de las CMAC; in Spanish)
- Guidelines for the Management of Boards and Directors of Companies under Peru SOEs Corporation (the National Fund for Financing State Business Activity) Authority (Lineamiento para la Gestión de Directorios y Directores de las empresas bajo el Ambito de FONAFE; in Spanish)
- Peruvian Corporate Governance Code - Código de buen gobierno corporativo para las sociedades peruanas (in Spanish)
- Peruvian Corporate Governance Report -Reporte sobre el cumplimiento del código de buen gobierno corporativo para las sociedades peruanas (in Spanish)
- Corporate Governance and Risk Management Regulation - Reglamento de gobierno corporativo y de la gestión integral de riesgos S.B.S. Nº 272-2017 (in Spanish)
- Sustainability Report - Resolución N° 018-2020-SMV/02: Reporte de sostenibilidad Corporativa (in Spanish)
- Sustainability Report (Annex) - Reporte de sostenibilidad corporativa (anexo; in Spanish)
- Women Board of Directors guide for business leaders (in Spanish)
- IFC’s SME Governance Guidebook (in Spanish)
The Integrated Environmental, Social, and Governance Project is implemented in partnership with the Switzerland State Secretariat for Economic Affairs (SECO).
Our Local Partners
The new Integrated Environmental, Social, and Governance Project in Peru is now selecting local partners.