Modern corporate governance faces a new challenge: ensuring not only the integrity of decisions but also the integrity of the data that supports those decisions. With the publication of the 6th edition of the IBGC Code of Best Corporate Governance Practices, topics such as purpose, sustainability, diversity, transparency, and accountability have gained even more prominence. Yet for these principles to move beyond abstract guidelines and become measurable and auditable actions, a new foundation is essential: data governance.
In this article, I explore how data governance becomes a fundamental component of corporate governance, especially in light of the IBGC’s updated recommendations. I show why board members, committees, and executives must treat data not as a technical asset, but as a strategic foundation for good governance practices.
1. The New IBGC Code: More Than Principles — A Call to Action
Since its first edition in 1999, the IBGC Code has guided companies and boards in building ethical, effective governance aligned with long-term interests. The 6th edition, launched amid a transforming global landscape, reinforces key pillars such as:
- Transparency: clear and reliable access to relevant information.
- Accountability: responsibility for management’s actions and decisions.
- Sustainability: integration of economic, social, and environmental dimensions into strategy.
- Diversity: valuing the plurality of experiences and perspectives in governance bodies.
- Organizational Purpose: connecting values, culture, and the creation of shared value.
This evolution places new responsibility on boards: ensuring that the data used to support decisions, meet legal obligations, and communicate results is accurate, complete, protected, and traceable. This is where data governance enters the scene.
2. Data Governance: What It Is and Why It’s at the Core of Corporate Governance
Data governance is the set of principles, policies, roles, processes, and technologies that ensure an organization’s data is managed as a strategic asset.
It includes:
- Data quality: accurate, complete, up-to-date, and consistent data.
- Security and privacy: access control, encryption, and compliance with LGPD.
- Transparency and traceability: tracking of data use and changes.
- Clear responsibilities: who owns the data, who can access it, who audits it.
In practice, data governance turns the IBGC principles from statements of intent into control systems, metrics, processes, and tools that connect the board to what actually happens in operations.
3. Reliable Data: The Raw Material for Strategic Boards
The quality of corporate governance is largely determined by the quality of the information reaching decision-makers. Without well-governed data, even well-structured boards may make misinformed or biased decisions.
Practical examples:
- ESG reports: indicators of emissions, resource consumption, diversity, or social impact are useless if the data is inconsistent or manipulable.
- Risk management: heat maps, risk dashboards, and compliance monitoring only work if fed by reliable data.
- Mergers and acquisitions due diligence: accurately assessing assets and liabilities depends on data integrity.
- LGPD oversight: the board may share liability for failures in protecting personal data.
Thus, data governance becomes an integral part of corporate governance — no longer a topic confined to IT or compliance.
4. Where Data Governance Is Already Making a Difference
Digitally mature companies are already adopting practices that show the value of this convergence. Some examples include:
- ESG and Sustainability:
Food, fashion, and energy companies use blockchain and IoT sensors to track emissions, water consumption, raw material origins, and labor practices. Without data governance, such technologies would be ineffective — or even dangerous (digital greenwashing). - LGPD and Information Security:
Organizations that map their data, classify risks, and define access policies not only comply with regulations but also mitigate incidents and demonstrate accountability to stakeholders. - Diversity and Inclusion:
With structured data on gender, race, pay, and internal mobility, boards can evaluate, propose, and monitor D&I policies based on evidence rather than perception. - Audit Committees:
Digital governance and compliance platforms enable real-time tracking of exceptions, fraud, risks, and pending actions — but only if supported by robust data governance.
5. Aligning the IBGC Code with Data Governance
Below are practical recommendations for boards and committees seeking to integrate data governance into their governance models:
a. Establish Clear Roles
- Data owners: responsible for each critical data domain (finance, HR, legal, ESG, etc.).
- Data Governance Committee: aligns guidelines, risks, and action plans.
- IT and Information Security: ensure technical infrastructure and protection.
b. Define Policies and Processes
- What is the lifecycle of each data type?
- Which data is sensitive, strategic, or compliance-related?
- How is access control and versioning managed?
c. Demand Transparency and Traceability
- Use tools that generate audit trails.
- Prioritize systems with automated dashboards and alerts.
- Monitor data flows between departments and systems.
d. Train the Board
- Promote workshops on LGPD, cybersecurity, and data analytics.
- Include board members with digital and data expertise.
- Make “data governance literacy” part of ongoing board education.
6. Challenges in Consolidating Data Governance
Integrating the technical and strategic worlds is not without barriers. The main challenges include:
- Organizational silos: lack of communication among IT, legal, ESG, finance, and the board.
- Analog culture: failure to recognize data as an asset.
- Technological complexity: legacy systems, unstructured data, fragile integrations.
- Insufficient investment: lack of budget for training, tools, and specialists.
- Strategic misalignment: boards that fail to understand their role in data oversight.
Overcoming these challenges requires systemic vision, leadership sponsorship, and cross-functional governance.
7. Conclusion: Without Quality Data, There Is No Good Governance
In a world where corporate reputation, sustainability, and survival increasingly depend on transparency, compliance, and accountability, data ceases to be a merely operational asset. It becomes the bridge between leadership discourse and organizational practice.
The new IBGC Code does not explicitly mention “data governance,” but everything it promotes — purpose, transparency, diversity, sustainability, accountability — depends on reliable, structured, and protected information. The marriage between corporate governance and data governance is not merely desirable — it is inevitable.
Companies that embrace this convergence will not only be better prepared to face risks and comply with regulations, but will also make better decisions, create lasting value, and build the trust required to thrive in an increasingly data-driven world.