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Others, though, see this as a positive step, saying that the simplification will make it easier for companies and asset managers to live up to their sustainability commitments. Last week, the FRC said that 297 institutions had signed its StewardshipCode so far, accounting for a total of 52.3 trillion (US$64.7 trillion) in AUM.
A review of the UK StewardshipCode2020 should prompt evolution rather than revolution, according to industry experts, who want to see refinement aimed at further improving outcomes. The post UK StewardshipCode to Benefit from Fine-tuning appeared first on ESG Investor.
Andrea Tweedie, Head of Stewardship at the Financial Reporting Council, highlights progress to date and calls for ‘good, bad and ugly’ feedback ahead of the upcoming review. The new codes substantially raised expectations for how money is invested on behalf of UK savers and pensioners,” said Tweedie. “In
Supervisory authority ESMA is calling for EU-wide stewardshipcode to hone and standardise investors’ engagement efforts and disclosures. There’s also the stewardshipcode introduced by the European Fund and Asset Management Association (EFAMA), which was first adopted in 2011.
Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardshipcode. This week the European Securities and Markets Authority (ESMA) laid out its long-term vision for Europe’s Sustainable Finance Framework.
These long-held principles of sustainability have filtered down to the world of investment. According to figures published by The Global SustainableInvestment Alliance in 2021, Japan’s total sustainablyinvested assets stood at US$42,874 billion in 2020, representing a more than fivefold increase from 2016.
Maanch enhances stewardship platform as fast-changing expectations lead to new pressures on service providers to support collaboration. The vital and expanding role of stewardship in reaching sustainableinvestment goals is prompting a step change in the technology deployed to support it. trillion in AUM.
Dr Alexander Juschus , CEO of the Association of Stewardship Professionals, outlines the importance of filling the stewardship skills gap to drive sustainable outcomes. While its roots may be longer, stewardship is synonymous today with sustainableinvesting.
Areas to be covered include the effectiveness of the FRC’s StewardshipCode in creating a market for stewardship, interaction between the code and existing stewardship-related rules in the FCA Handbook , and stewardship-related issues raised in the UK government’s updated Green Finance Strategy , released in March.
Further clarification may be on the way as the UK government’s updated Green Finance Strategy 2023 includes a commitment to review pension trustees’ fiduciary duties and stewardship activities. The paper notes that as a relatively new concept, stewardship has not been explicitly included in the terms of many pension fund trusts.
UK asset owners are feeling the squeeze from sustainability reporting, but they are working on ways to ease the pinch. This was followed in 2010 by high level reporting for the Financial Reporting Council’s (FRC) original StewardshipCode. Then in 2020, things began to change, notes Russell.
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
Through SIPs, trustees with 100 or more members are now expected to publicly state their – or their external managers’ – engagement policy and priorities, and explain in detail how they steward their sustainableinvestments.
However, as institutional investors, academics, NGOs, investor networks and data providers congregated in London last week for ESG Investor ’s inaugural Stewardship Summit , it became clear that many asset owners lack the resources necessary to fulfil their engagement ambitions. Transparency is improving, but slowly.
Scanning across to the Financial Reporting Council’s UK StewardshipCode, the 2020Code represents a mature governance regime for UK-listed businesses. It has its origins in 1992’s Cadbury report and code, which covers the financial aspects of corporate governance.
Specifically, she released the interim findings of the government’s Pension Investment Review , which included detailed plans to consolidate the £500 billion AUM (US$634 billion) Local Government Pension Scheme (LGPS).
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