GCC presented the updated methodology for the SOE Good Governance Index

The Governance Coordination Center (VKC), aiming to continue successfully improving the governance of state-owned enterprises (SOEs), has introduced the latest updates to the SOE Good Governance Index methodology. This year’s changes seek to clarify the distribution of responsibilities between the enterprise itself and the shareholder’s actions. Additionally, the evaluation system within the methodology is being modified to better highlight existing critical governance gaps, which were previously partially obscured by other implemented practices.

According to VKC Director Vidas Danielius, the changes made to the Good Governance Index methodology will help SOEs and their shareholders more clearly identify governance gaps or strengths and understand whether they fall under the responsibility of the enterprise itself or the shareholder.

“The updates will ensure more effective governance improvements and, if necessary, enable complex decisions to be made across the entire SOE governance structure,” says the VKC Director.

V. Danielius also notes that, in response to changes in international governance practices, this year’s methodology updates have placed greater emphasis on sustainability. From now on, sustainability will be assessed as a separate category.

The SOE Good Governance Index is a tool developed by VKC that allows for an easy and effective evaluation of how national and international good governance practices are being implemented. It clearly and simply indicates which practices have not been implemented or have been only partially applied.

This is a convenient tool for SOEs and their shareholders to familiarize themselves with good governance practices and identify areas where progress is needed.

The index methodology is reviewed and updated annually in response to changes in governance principles and SOE management practices. Experience shows that the SOE Good Governance Index has already found its place in the daily operations of enterprises and is widely used by both shareholders and companies.

We invite you to explore the updated SOE Good Governance Index methodology at the following link:

SOE Good Governance Index Methodology