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The UK’s Financial Reporting Council (FRC) has moved to reduce reporting burdens and streamline processes for signatories through a revamp of its StewardshipCode. The second phase will now consist in a full public consultation, due to be launched in the summer after the 2024 AGM voting season.
A review of the UK StewardshipCode 2020 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.
Laith Cahill, Senior Net Zero Stewardship Specialist at the IIGCC, says the UK’s streamlined StewardshipCode must preserve its ambition. Since its last update in 2019, the landscape for stewardship and reporting has evolved drastically. The StewardshipCode plays a key role in influencing global practice and rigour.
Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardshipcode. In Q2 2024, Europe’s strengthening performance was, however, offset by outflows in virtually every other market – meaning green funds globally saw just US$4.3 billion of net new money.
billion of pension fund assets, as of 30 June 2024, and manages seven investment-pooling vehicles across seven asset classes: global equities, fixed income, infrastructure, real estate, private equity, credit and alternatives. Deakin is a strong advocate of the code. LPPI, for example, is responsible for £26.3
The FRC’s review of 2022 UK StewardshipCode submissions from asset managers and owners identified improvements in the quality of disclosures, including addressing systemic risks, monitoring third parties and extending assessments beyond equity investments.
Another long-awaited announcement came from the UK’s Financial Reporting Council (FRC), which confirmed the start of its StewardshipCode 2020 review. FRC Head of Stewardship Andrea Tweedie’s keynote speech at the Stewardship Summit 2024 should shed further light on this. Evolution or revolution?
“It is crucial to examine whether GPIF’s activities can be connected to companies’ behavioural changes and higher ESG ratings.” As first outlined in GPIF’s ‘ Stewardship Activities Report ’ published in March, collaborative studies will run over the course of 2023 and 2024.
Panellists at ESG Investor ’s 2024 summit highlighted resourcing gaps in stewardship teams and recommended sharing of engagement responsibility. While one asset manager reported 5,312 engagement actions over a 12-month period, five others recorded 200 or fewer over the same period.
If you look at stewardshipcodes across the world, they touch on resources as being a key element, but without explicitly giving out guidance on how organisations can report and which resources are required,” Jessica Gao, Director of Research at the TAI, told ESG Investor.
If you look at stewardshipcodes across the world, they touch on resources as being a key element, but without explicitly giving out guidance on how organisations can report and which resources are required,” Jessica Gao, Director of Research at the TAI, told ESG Investor.
Simplified rules One area of work already completed is the Financial Conduct Authoritys (FCA) revision of the UK Listings Rules , which came into effect on 29 July, 2024. The proposals, published in July 2024, include reducing annual reporting requirements and offering greater clarity on stewardship outcomes.
Proposed revision to stewardship definition seen as potentially weakening ambition and fostering distance between investment decisions and their impacts. A tweak to the Financial Reporting Council’s (FRC) definition of stewardship in a proposed update to the UK StewardshipCode has been received with alarm by asset owners and managers.
Shareholder rights face a defining year after 2024 saw rising misalignment between institutional investors and asset managers, as well as growing regulatory constraints on the formers influence. 2024 was a bad year for shareholder rights, says Caroline Escott, Senior Investment Officer at UK pension scheme Railpen.
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