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SSH Adopts Revised Corporate Governance Code and Supplements SSH Recommendations and Expectations

Ljubljana, 18 December 2023 - In accordance with the current Annual Asset Management Plan for 2023, Slovenian Sovereign Holding (SSH) has adopted the revised Corporate Governance Code for SOEs (hereinafter:  the “SSH Code” or “CGCSOE”) and has supplemented the SSH Recommendations and Expectations with a new recommendation No. 14.

It was necessary to revise the SSH Code in order to align the document with the latest European Union directives in corporate governance, sustainable development, sustainability reporting, and gender equality. The revision of the SSH Code, along with other amendments and additions, aims at improving the transparency of SOEs’ operations, increasing the accountability of individual positin holders in companies, enhancing stakeholder trust, and further strengthening compliance and integrity within the companies from the portfolio managed by SSH.

A significant improvement of the SSH Code relates to the definition of its addressees. Henceforth, the SSH Code (in its entirety) is primarily addressed to non-public companies in the portfolio managed by SSH, and those public limited companies which are considered public only by the criterion of public bond issuance. These companies should use the SSH Code as a reference code. Public limited companies whose shares are listed on the stock exchange and are included in the portfolio managed by SSH should at least consider specific recommendations of the SSH Code which are explicitly also addressed to them, as visibly indicated in CGC SOE. It is assumed that such companies use the Slovenian Corporate Code of Governance for Listed Companies as a reference code, while also considering the recommendations of the SSH Code which are explicitly addressed to them.

Amendments to SSH Recommendations and Expectations: The new Recommendation No. 14 in the SSH Recommendations and Expectations regulates in more detail the area of compliance and integrity in companies where SSH holds a majority stake or has a dominant influence. The recommendation stipulates that these companies must establish and maintain an effective system of internal controls by way of which the adherence to legislation, codes, policies, and standards is ensured. Furthermore, SOEs must adopt and implement a code of conduct in which ethical principles and rules are defined and addressed to all employees, members of various bodies, and other stakeholders. Companies addressed by the SSH Recommendations and Expectations should follow the recommendations stated by following the “comply or explain” principle.

SSH will monitor the implementation of the SSH Code and the SSH Recommendations and Expectations in SOES and expects these companies to regularly report on their governance.