The weight of SOEs in the global economy has increased over the past decades. The number of SOEs in the top 500 global companies by revenue practically quadrupled from 34 in 2000 to 126 in 2023. Today, they represent 12% of global market capitalisation. Given their growing role, it is important that SOEs adhere to high standards of corporate governance and contribute to fair and competitive markets, while also ensuring that they are run in the public’s best interest. 

The OECD Guidelines on Corporate Governance of State-Owned Enterprises address the unique challenges and opportunities of state ownership. Revised in 2024, they reflect recent evolutions in the global marketplace to ensure that SOEs contribute to these objective and to sustainability and economic security and resilience.

Since the SOE Guidelines were first adopted, many countries around the world have used them to advance reforms, resulting in more professional and active ownership and exposing SOEs to the same standards of transparency and accountability as listed companies. The OECD supports its members and other countries by undertaking country reviews and providing reform assistance that help to drive national reforms to improve SOE performance and raise institutional capacity. 

It is estimated that SOEs are responsible for one-fifth of direct carbon dioxide emissions globally. Due to their outsized role in energy and extractives, such as critical minerals, SOEs can play a key role in the low-carbon transition and in achieving SDGs. For this to happen, policies and practices must be coherent with and enable national and international sustainability and climate commitments.

The OECD Guidelines on Corporate Governance of State-Owned Enterprises include recommendations on sustainability to help state-owners  integrate sustainability and responsible business conduct considerations in their ownership policies and practices, and those of their SOEs. 

The benefits of SOE ownership are economic, political and social. So too are the costs when mismanagement or abuse occurs.

OECD research shows that certain SOEs may be particularly exposed to corruption risks, due in part to their prevalence in high-risk sectors, such as extractive industries and infrastructure, where public and private sectors intersect via valuable concessions and large public procurement projects.

Strong and responsible state ownership  can help mitigate these corruption risks. The OECD Anti-Corruption and Integrity Guidelines for SOEs offer states support in fighting corruption, including by improving risk management and enhancing integrity and accountability.