After the GIF Conference 2024

The convergent evolution between Programa GIF and Cerise+SPTF

Cara Forster is Director of the Responsible and Inclusive Finance Facility for Central America and the Caribbean (RIFF-CAC). In this article, she shares learnings from the GIF Conference 2024 and her reflections on the long-lasting and fruitful collaboration between Programa GIF and Cerise+SPTF.

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Cerise+SPTF have been conversing and collaborating with Programa GIF over the last five years and over time our methodologies have drawn closer together and learned from each other. This convergent evolution was on full display at the recent GIF conference in Ecuador on September 5-6, 2024.

Before the pandemic, GIF urged SPTF to include more on governance in its Universal Standards, while SPTF urged GIF to include more social performance in its governance evaluations. And I’m pleased to say that the intersection of these topics has enriched the work of both! In 2022, Cerise+SPTF released the third edition of the Universal Standards, now with a standard on governance and at this event in Ecuador, Programa GIF launched the new version of its evaluation tool - ESGIF - now with pillars on Environment and Social Performance to complement its thorough evaluation of governance.

The conference offered its participants an innovative format and a modern feel with large screens behind the speakers as they presented a Ted Talk style summary on their topic of expertise. These presentations, by leading industry experts on topics ranging from Sustainability to Digital Transformation to Governance, were followed by a facilitated conversation among other relevant stakeholders to expand upon the topic from different viewpoints.

Juan Carlos Sanchez, the Director of GIF, explained that governance is a system designed to protect the institution’s patrimony, fulfill its mission, and consolidate a sustainable financial institution. I was surprised, though perhaps I shouldn’t have been, to note the similarities between what the experts on governance propose as the recipe for creating a strong institutional culture of corporate governance and what Cerise+SPTF promotes as the best way to ensure implementation of strong social performance and environmental sustainability.

These include:

  • There should be a champion among the management team to promote this work,
  • There should be a committee at the board level on this topic, and
  • The topic needs to be integrated into the organizational culture if it is to last and thrive.

Mr. Sanchez’s conclusion about good governance is the same as Cerise+SPTF’s conclusion about SEPM: implementing these strong practices is not just the right thing to do it is also good business!

There were lots of ideas I benefited from hearing, and I want to share some of my favorite quotes with you below:

“Governance is a toolbox that helps you align the interests of stakeholders, plan for the long term, manage risks, and provide accountability and transparency for the institution’s work. The tools exist – just use them!” - Andres Oneto, CAF

“Good governance helps the institution adapt to the changing times, whether its digital transformation or Covid-19.” - Rene Romero, Amarante

“The main challenge for the Board of Directors is to represent all of the stakeholders not just the shareholders. Its important to take into account the different visions that each of these stakeholders and shareholders have.” - Luis Hinjosa, BancoDesarrollo

“The Board of Directors are the roots of the tree and if they are not healthy the rest of the tree cannot flourish.” - Catalina Rojas, IDB Invest (see graphic below)

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