In order to ensure efficient management of state-owned enterprises (hereinafter - SOEs) and to promote the implementation of good governance practices, the Government Coordination Center (GCC) evaluated and submitted a report on the implementation of SOEs governance provisions and other good governance practices established by the Government of the Republic of Lithuania at SE Ignalina Nuclear Power Plant (hereinafter - SE INPP).
After the evaluation of the good governance index, SE INPP was assigned a positive (A) rating. Thanks to the consistent implementation of the recommendations provided by the GCC, the INPP's index is improving every year (the results of the assessments performed in 2017 and 2018 were average (B) assessment and positive (A) assessment, respectively). It should be noted that the SOE Good Governance Index is compiled on the basis of best corporate governance practices and legal provisions, but does not cover all aspects of SOE activities and shows only a part of their quality, therefore when analyzing the results of the index, it is necessary to take into account the specifics of the enterprise's activities.
The evaluation report provides recommendations for improving the management of SE INPP in the following areas: improvement of the annual activity report (including analysis of financial results, risk management measures, fulfillment of special obligations), improvement of the website (including adjustment of the content structure of the website by clearly distinguishing the most important sections and detailing enterprise’s governing bodies), improvement of the sustainability (social responsibility) report (including systematic disclosure of key risks and sustainability objectives). It should be noted that the results of SE INPP are improving every year in the areas that are evaluated and for which the GCC provides recommendations.
“We constantly strive for the highest standards of operational transparency; therefore, we work consistently and responsibly - we improve management, strategic planning, accountability and other processes in accordance with the recommendations provided by the GCC. I believe that the improvements implemented according to these recommendations will contribute to a higher estimate in the future,” said Audrius Kamienas, General Director of SE INPP.
The annual SOE Good Governance Index compiled by the GCC is one of the main tools for assessing the quality of SOE management. It is drawn up in accordance with the recommendations of the Organization for Economic Co-operation and Development, the provisions of the Ownership Guidelines, the Transparency Guidelines and the Selection Guidelines, as well as other documents governing the activities of SOEs and best global practices.
The valuation methodology is reviewed and updated annually in order to respond to changes in the legal acts regulating the activities of SOEs or changing governance practices, and in order to increase the reliability of the Index and its ability to qualitatively reflect the governance of SOEs. This common index consists of an assessment of Transparency, Collegial Bodies, Strategic Planning and Implementation.
The methodology of the SOE Good Governance Index is available on the following link: