6.1%

forcast annual inflation rate for 2022

+9 points

for business Confidence in Luxembourg

1.6%

for financial services prices at the end of March 2022

8th rank
in the European Digital Economy and Society Index (DESI) for Luxembourg

All the news that’s fit to browse - April 2022

Carine Feipel (ILA): Committing to Good Governance

 The Luxembourg Institute of Directors (ILA) stands out as the “Voice of Governance in Luxembourg,” says Carine Feipel, Chair of the institute that rises to challenges of ensuring good governance in all business structures. Interview.

 Can you describe your association in a few words?

The Luxembourg Institute of Directors has existed since 2005 and works as an ASBL for good governance in companies and institutions in Luxembourg. It has around 2,300 members interested in these subjects and embodies the voice of governance in Luxembourg. We have three major objectives:

– Committing ourselves to good governance practices and ensuring that governance becomes a key subject in Luxembourg companies and institutions.

– To provide training for directors and other governance professionals, including certain certification programs.

– Interacting with the authorities on governance issues.

Although our association was created mainly for investment funds, we are now involved in the main private and public sectors of Luxembourg.

Today all boards of directors must define an ESG strategy for their companies

How are your members’ needs changing and how are you adapting to them?

Many of our members regularly follow our training courses. These cover a variety of topics relevant to boards of directors. We must constantly adapt our training offer to the many issues dealt with by the boards of directors. These are constantly evolving according to current topics, legislative and regulatory changes. For example, almost all of our courses include an ESG aspect. We have also set up specific training courses for directors on digital, “cyber security” or artificial intelligence topics. This year, we also developed a specific training and certification program for investment fund directors. In addition, since the start of the health crisis, board meetings have mostly shifted to remote operation. This is not always conducive to discussions and strategic thinking. We have therefore proposed certain guidelines to ensure that governance is not undermined by this exceptional situation.

What are the main challenges faced by directors?

Today’s directors must be both excellent generalists and specialists. They must be able to understand and make decisions on a large number of very different subjects. They must also be involved in highly technical and complex subjects. The real challenge – accentuated by the rapid and dense evolution of regulations – lies in keeping oneself up to date and sufficiently educated in these matters. Today, for example, boards of directors must define an ESG strategy for their companies. Directors must therefore understand the ins and outs; determine the company’s vision in this area; it’s way of positioning itself and the impact on its business, its products, its customers, its employees, etc. Finally, diversity – both at the level of boards and operational management – ​​is a major concern for boards of directors. Indeed, in this area, Luxembourg is not at the head of the race in international reports. At ILA, we therefore make companies aware of this issue of governance in order to enable them to find the appropriate composition of their governance bodies.