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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.
“Stewardship encompasses everything that we manage, including our pension fund clients’ assets and reputation; it is not just about traditional activities such as engagement,” Frances Deakin told ESG Investor. Viewing stewardship as everything we do is my definition of responsible investment (RI).”
In March 2021, the BEIS published a consultation calling for an increase in audit firms’ accountability to shareholders, an expanded scope to include non-financial information such as ESG risks, and announced the development of ARGA. The consultation received over 600 responses, with the majority proving supportive of the new regulatory body.
She said that RIAA was working the UN Principles for Responsible Investment (PRI), CFA Institute and others to develop some agreed key ESG terminology. The draft guidance is due to be finalised in Q2 2023. The post “Clear Direction” on ESG in New Guidance for Australian Super Funds appeared first on ESG Investor.
The introduction of a toughened code has led to improved governance and resourcing of stewardship by UK-based asset managers and owners, but investment in the area faces ongoing challenges, including tensions with other staff. .
“If there is a problem, its solution will be a legal one, so the FMLC is a sensible vehicle for considering it,” he said, adding that the FMLC has the “appetite to do the work, the right people in the room, and a real capacity to deliver”.
In terms of drivers of geographic distinctions, he cited the recently strengthened UK StewardshipCode as one reason why European firms generally outperformed their US counterparts on clarity of voting policy. Increasingly vocal. It remains to be seen what will happen in the coming proxy year.
Shaking up existing stewardship practices can take time, especially when the current approach is so deeply embedded. Many countries in Asia already have stewardshipcodes in place, including Japan, Singapore, Hong Kong and South Korea. Koreas value-up programme is inspired by a similar initiative in Japan.
Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardshipcode. Hungry for change – With six years to go, UN Sustainable Development Goal (SDG) 2 – which aims to end hunger, achieve food security and improve nutrition – is back to square one, at best.
After a pension fund-led coalition laid out new expectations for managers on climate related-stewardship, there were signs of consensus among customer and supplier over the name of the game.
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