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The previous version of the StewardshipCode, adopted in 2020, defined stewardship as the creation of long-term value for clients and beneficiaries, leading to sustainable benefits for the economy, the environment and society. Battlelines drawn The consultation on the new StewardshipCode concluded on 19 February.
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 final phase will see a revised version of the code being published sometime during Q1 2025, with a likely effective date in January 2026. trillion (US$64.8
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.
The tool lets users generate real-time reports aligned with frameworks including the UK’s StewardshipCode 2020, the Global Reporting Initiative taxonomy and the UN Sustainable Development Goals. Gillies flagged the UK StewardshipCode as being a particular catalyst for the growth of investors’ and managers’ focus on engagement.
Changes to the UK StewardshipCode wont lower ambition but will instead introduce more flexibility that better caters to its breadth of signatories, according to the Financial Reporting Council (FRC). Last year, the FRC was alsocriticised for watering down its ESG and audit requirements in revisions to the UK Corporate Governance Code.
Rules of engagement Closely linked to Listings Rules revamp in the eyes of asset owners is the Financial Reporting Councils (FRC) proposed changes to the UK StewardshipCode, which now numbers 297 signatories, representing 52.3 trillion assets under management.
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.
The country is also upping its game on stewardship, with New Zealand’s inaugural StewardshipCode launching last year with 17 signatories, says Simon O’Connor outgoing CEO of RIAA. “The Code was developed collaboratively by the industry and responds to our unique context in New Zealand,” he says.
The group, which is co-chaired by Escott and Scottish Widows Investment Stewardship Lead Shipra Gupta, is due to confirm next steps in the spring, including an agreed vote reporting template.
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