The International Corporate Governance Network (ICGN), led by investors responsible for assets of USD$77 trillion, has today published ‘ICGN Governance Recommendations for the United States’ and an ‘Investor Viewpoint on Artificial Intelligence’, ahead of the ICGN Washington, D.C. Conference (hosted by IFC) on 7-8 March 2024.

The ICGN Governance Recommendations for the United States clarify issues of particular importance to ICGN Members and serve as an agenda for dialogue with regulators, standard-setters, and business. The recommendations will be shared in face-to-face meetings with U.S. policymakers, including SEC Commissioners and Senators’ staff on 06 March and made publicly available via the ICGN website.

ICGN often publishes governance reform recommendations alongside ICGN conferences, most recently in Japan, Korea and Sweden. The Governance Recommendations for the United States refer to shareholder rights, board effectiveness, executive compensation disclosure, auditor independence, and corporate sustainability reporting and assurance.

ICGN’s Former CEO Kerrie Waring said: “With members in over 40 countries, ICGN’s Governance Recommendations for the United States share international experience on emerging standards related to robust corporate governance, high quality reporting, reliable auditing and assurance, and effective investor stewardship. The recommendations are published in recognition that companies and investors have a mutual responsibility to preserve and enhance long-term corporate value, contributing to sustained economic growth, social prosperity and capital market stability. It is in this spirit that we share global investor opinion on areas for potential national policy reform and we look forward to the dialogue.”

Also published today is the ICGN Investor Viewpoint ‘Artificial intelligence: An engagement guide’, which supports investors in assessing whether a company uses AI in a safe, ethical, and sustainable manner. With the fast pace of technological change, and AI being used by an increasing number of companies across many economic sectors, best practices for responsible AI – in terms of governance, conduct, and reporting – will continue to evolve.

ICGN therefore encourages constructive dialogue between investors, companies, policymakers, and standard-setters on this important topic.

Severine Neevoort, Global Policy Director, ICGN, said: “AI presents both extraordinary opportunities and complexities for today’s companies. Investors expect company boards and management teams to understand and manage these.”

The Rt Hon. The Lord Mayor, Alderman Professor Michael Mainelli said: “We welcome ICGN’s Viewpoint and the continued collaboration with the Lord Mayor’s Ethical AI Initiative. Building a constructive consensus between Investors, Firms and relevant professionals on the ethical deployment of AI is an urgent priority, and this is an important step forward.”

ENDS