ICGN Issues AI, Governance Recommendations

The International Corporate Governance Network (ICGN) has published an investor engagement guide on AI and ICGN Governance Recommendations for the US. The former aims to support investors in assessing whether a company uses AI in an ethical and sustainable manner, outlining best practices for governance, conduct and reporting. “AI presents both extraordinary opportunities and complexities for today’s companies,” said Severine Neevoort, ICGN’s Policy Director. “Investors expect company boards and management teams to understand and manage these.” The governance recommendations outline issues of particular importance to ICGN members, serving as an agenda of dialogue with US regulators, standard-setters and businesses. They refer to shareholder rights, board effectiveness, executive compensation disclosure, auditor independence, and corporate sustainability reporting and assurance. “ICGN’s governance recommendations for the US share international experience on emerging standards related to robust corporate governance, high-quality reporting, reliable auditing and assurance, and effective investor stewardship,” said ICGN CEO Kerrie Waring. “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.”

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