Corporate Governance 2020 Annual Study by Vigeo Eiris ang GovernArt
For the fourth time, in partnership with the Adolfo Ibáñez University, we make publicly available the results of these ratings through the ESG Series.
Vigeo Eiris and GovernArt have been promoting ESG integration in Latin America for over 5 years. We have joined forces on several occasions (ALAS 20 being one of them) to help develop ESG ratings in the region. Today, we offer a wide range of ESG ratings aligned with companies’ and investors’ needs.
In a context where the role and impact of companies in society are highly questioned and under continuous scrutiny, corporate governance bodies have been placed at centre stage, facing important challenges which are sometimes new to them. Demand is rising for greater transparency, evidence of ethical behaviour, alignment of operations with social challenges of societies, active participation in environmental
protection, and the fight against climate change.
Furthermore, many large companies in Latin America are transitioning from a family driven capital and leadership structure towards more international structures in terms of shareholding and operations. Challenges associated with this transition require more transparency and proactivity to demonstrate long term sustainable strategies. International investors are demanding more and better-quality information on the Environmental, Social and Governance (ESG) strategy and performance of companies. Investors from Latin America are starting follow suit in requesting such information. ESG topics are inherently transversal in corporate strategies, for which they naturally fall under the responsibility of Boards of Directors.
It is important to note that in recent years, large Latin American companies have made efforts to improve the robustness of their internal control and corruption prevention systems. Although there remain areas that need improvement to achieve best practices, Latin American companies are on a quest for betterment.