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Many sustainability-focused investment managers and asset owners remain anxious that the UKs Financial Reporting Council (FRC) has removed all mention of environment and society from its definition of stewardship. trillion (US$64.7 trillion) in AUM. trillion (US$64.7 trillion) in AUM.
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.
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.
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. This week the European Securities and Markets Authority (ESMA) laid out its long-term vision for Europe’s Sustainable Finance Framework. But transforming and strengthening agrifood systems is essential too.
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