Sustainability is a key element of Norfund’s mandate. Norfund strives to ensure that all enterprises in which we invest are run professionally, responsibly and predictably. We are therefore concerned with establishing appropriate internal structures and processes for good corporate governance. Well-run enterprises with positive relationships to their key stakeholders make the most interesting partners, and also the most interesting candidates for acquisition for other companies and financial investors. Social responsibility and integrity are therefore a key concern for Norfund at all stages of the investment process.
Enterprises that have well-regulated relations between the board and the management, and ensure transparent and reliable reporting, can improve their operations through a higher quality of their internal decision-making and enhance their ability to attract capital, and thereby become a more interesting acquisition candidate to others.
Even though the views on what constitutes good corporate governance may vary among regions and cultures, keeping this in focus is a key factor for developing the enterprises and creating well functioning markets. Norfund has therefore – in concert with nearly thirty similar development financinstitutions – signed a joint declaration to work proactively to improve corporate governance in all our markets.