Good corporate governance is essential to achieve financial sustainability and development goals
Corporate governance refers to the structures and processes for the direction and control of companies as stated in the Corporate Governance Development Framework. Corporate governance matters because it improves the performance of our investees and helps develop capital markets. Sound corporate governance reduces risk, adds value to investments and avoids reputational risks for investors.
Appropriate corporate governance is directly linked to private companies contribution to sustainable economic development. Norfund carefully assesses the governance structure and framework for each potential investment. We require the companies we invest in to promote and adhere to high standards of corporate governance and will, when needed, assist our investees in improving their corporate governance systems.
Norfund has signed up to the following internationally recognized frameworks and initiatives:
Corporate Governance Development FrameworkA framework set out by and for Development Finance Institutions
Principles for Responsible InvestmentAn investor initiative in partnership with UNEP Finance Initiative and UN Global Compact
Norfund’s Responsible Tax Policy
Norfund recognizes that tax receipts are fundamental to the ability of governments in developing countries to fund infrastructure and public spending and stimulate sustainable development.
As a responsible investor, whose mandate is to contribute to developing sustainable companies and industry in developing countries, Norfund supports prudent transparent tax behaviors.
We are committed to invest in accordance with our Responsible Tax Policy which, in turn, is based on
- The Norfund Act
- Norfund’s statues
- Letter from the Norwegian ministry of Foreign Affairs “Norfund’s investments through third part countries”
- EDFI’s Principles for Responsible Tax in Developing Countries