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Europe’s Next Big Step

Chris Hall

Supervisory authority ESMA is calling for EU-wide stewardship code to hone and standardise investors’ engagement efforts and disclosures. There’s also the stewardship code introduced by the European Fund and Asset Management Association (EFAMA), which was first adopted in 2011.

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A Fine Line

Chris Hall

Laith Cahill, Senior Net Zero Stewardship Specialist at the IIGCC, says the UK’s streamlined Stewardship Code must preserve its ambition. Since its last update in 2019, the landscape for stewardship and reporting has evolved drastically. Investor needs have changed, as have regulatory obligations.

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Phoenix Champions Human Rights Stewardship

Chris Hall

Asset owner makes progress on climate and asset manager information-sharing in first year as Stewardship Code signatory. Last year, Phoenix also became a signatory of the Financial Reporting Council’s UK Stewardship Code. It intends to support constructive dialogue,” she said.

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All About the Outcomes

Chris Hall

While one asset manager reported 5,312 engagement actions over 12 months, five others recorded 200 or fewer over the same period. It’s imperative that asset owners outline their stewardship expectations to asset managers from the outset, suggests Joe Dabrowski, Deputy Director at the Pensions and Lifetime Savings Association (PLSA).

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New Climate Rules and Guidance for UK Pensions

Chris Hall

The DWP issued a consultation last October on proposed changes to the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 to require trustees to calculate and disclose a portfolio alignment metric to show alignment with the goal of limiting climate change to 1.5 degrees Celsius.

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Stewardship Dialogue Must be Ongoing – FCA

Chris Hall

According to Manning, the FCA is keen to identify regulatory constraints on collaborative engagement, which has been used increasingly by asset owners and managers in recent years, particularly to address systemic environmental risks, such as climate change and accelerating biodiversity loss.

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UK Aims to End Uncertainty on Fiduciary Duty

Chris Hall

A commitment to review pension trustees’ fiduciary duties and stewardship activities in the UK’s updated Green Finance Strategy has been welcomed by industry experts.