Governance Coordination Centre assesses the enterprise's good management practice

17 November,
Governance Coordination Centre assesses the enterprise's good management practice

To ensure the effective management of state-owned enterprises (SOEs) and to promote the implementation of good governance practices, the Governance Coordination Centre (GCC), like every year, evaluated and presented a report on the implementation of the provisions of SOE governance set by the Government of the Republic of Lithuania as well as of the other good governance practices at the State-Owned Enterprises (SOEs) Ignalina Nuclear Power Plant (INPP).

The assessment of the Good Governance Index resulted in a positive (A) rating for the INPP in all evaluated dimensions: transparency, collegial bodies, strategic planning, implementation, and in the Good Governance Index assessment.

"The Good Governance Index for SOEs is one of the main tools for assessing the qualitative aspects of SOE governance. We were assessed against 260 criteria, reflecting the OECD Recommendations, the Transparency Guidelines and other documents regulating the activities of SOEs, as well as global best practices. We strive to work professionally and see the dimension ratings given by the SSC as an example of stability. For the third year in a row, we have a very good (A) rating. We take the recommendations we receive as a tool for improvement," said Director General Audrius Kamienas.

In the evaluation report, the GCC made recommendations for improving the INPP's governance in the following areas: sustainability objectives and targets (Disclose the main sustainability objectives. These objectives should relate to the enterprise's main sustainability impacts and be measurable. It must be clear what the company's objectives are in the key sustainability areas). More systematic and broader disclosure of the main impacts that the enterprise has/is having around sustainability (environmental, social, or anti-corruption) (i.e., what impacts/damages are caused by (or risks are present in) the enterprise's activities in these areas).

"The SCC has a significant and positive impact on the development of sustainability in state-owned enterprises, with a particular focus on sustainability at the moment. The SCC's SOE Good Governance Index is now one of the main tools for disseminating sustainability practices among SOEs. We have partially addressed the comments and recommendations made by the SCC, so I think we are moving in the right direction", said Donatas Juodpušis, Head of Sustainable Development.

The annual good governance index of public sector entities, compiled by the VCC, is one of the main tools used to assess the quality of governance of public sector entities. It is compiled considering the recommendations of the Organisation for Economic Co-operation and Development, the provisions of the Ownership Guidelines, the Transparency Guidelines, and the Selection Guidelines, as well as other documents regulating the activities of SOEs and global best practices. The assessment methodology is reviewed and updated annually to respond to changes in the legislation governing the activities of SOEs or evolving governance practices, and to enhance the Index's credibility and capacity for qualitative reflection of SOE governance. The overall Index consists of an assessment of the Transparency, Collegial Bodies, Strategic Planning, and Implementation dimensions.

To better understand the results of the Index and the scoring system, it is recommended to refer to the 2021/22 Good Governance Index Methodology for SOEs, at: