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.
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.
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.
The project provides in-depth technical advice to firms to improve their ESG performance, including through the following:
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:
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.
The Integrated Environmental, Social, and Governance Project is implemented in partnership with the Switzerland State Secretariat for Economic Affairs (SECO).
The new Integrated Environmental, Social, and Governance Project in Peru is now selecting local partners.