In response to evolutions in the corporate governance of state-owned enterprises (SOEs), the OECD revised the OECD Guidelines on Corporate Governance of State-Owned Enterprises (SOE Guidelines) in 2024. The revised Guidelines include a new Chapter VII on sustainability which recognises that governments as owners and SOEs themselves should lead by example and manage risks and opportunities in a way that contributes to sustainability, resilience and long-term value creation. For this to happen, policies and practices must be coherent with and enable national and international sustainability commitments.
Drawing on a collection of international experiences, this report provides practical guidance on implementing Chapter VII on sustainability of the SOE Guidelines. It builds on information provided voluntarily by OECD member and partner countries, as well as selected SOEs, and is complemented by desk research. The report primarily addresses the state as owner and SOEs engaged in economic activities where the state is a full or majority owner, but it offers insights relevant to all types of SOEs.
Following an overview of the evolving sustainability landscape of SOEs in Chapter 1, the report is structured around the four main pillars of the SOE Guidelines’ Chapter VII:
Chapters 2 and 3 examine the role and responsibilities of the state as an owner and of SOE boards in integrating sustainability into their governance and decision making frameworks.
Chapter 4 explores sustainability-related reporting and disclosure.
Chapter 5 highlights key aspects related to responsible business conduct (RBC), with a focus on stakeholder engagement and integrity, which are relevant across all aspects of SOE governance.
The report offers case studies and “practical insights” aimed at supporting implementation by both state ownership entities and, where relevant, SOE boards.
This report was developed by the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs. It was prepared by Arijete Idrizi, Karoline Irmscher and Alison McMeekin, with inputs from Nina Chitaia, under the supervision of Sara Sultan, Head of the State-Owned Enterprise Unit, and Serdar Çelik, Head of Division. Inputs were provided by the Division’s Sustainable Finance Team, and by the OECD’s Centre for Responsible Business Conduct and Environment Directorate.
Delegates of the OECD Working Party on State Ownership and Privatisation Practices provided valuable information and insights on their practices.