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Manning said feedback on this subject would inform a planned review of the overall UK legal and regulatory framework relating to investment stewardship, due to be conducted later this year. Manning said the TPT’s guidance would provide support and input for investors’ sustainability-related stewardship activities. “If
Trustees should exert their influence over asset managers and investee companies to ensure they are “walking the walk” in terms of adapting their business models to net zero objectives, she said, including encouraging managers to sign up to the UK StewardshipCode.
Following this year’s proxy season, the UK Asset Owner Roundtable has invited asset managers to have a “constructive dialogue” with its members to improve alignment on climate-related engagements with investee firms.
A recent Financial Conduct Authority (FCA) discussion paper asked for feedback on possible regulatory change needed to support collaborative engagement and systemic stewardship, while the Financial Reporting Council is due to lead a review of its StewardshipCode. Also speaking at the Stewardship Summit, Mark Manning , Strategic Policy Advisor on (..)
It emphasised the importance of trustees raising their climate stewardship ambitions by using Paris-alignment metrics to inform their engagement efforts to ensure they are truly contributing to the goals of the Paris Agreement. . Trustees can then use this information to prioritise specific companies for engagement. . “We
C) “could incentivise the wrong behaviours” and result in schemes merely divesting the achieve alignment, rather than trying to engage to transition assets. The consultation response was coupled with stewardship guidance to help trustees to more aggressively challenge asset managers on their voting.
The mainstreaming of the industry has stimulated innovation on all levels, from the creation of new financial products, to a booming service provider space and novel research to help close knowledge and information gaps. If divesting from harmful industries, communicate this publicly. Collaboration as an enabler.
The firm’s first transition plan eschews divestment, but neither is it putting all its eggs in one basket, emphasising policy-focused engagement , including encouraging governments to provide the framework and incentives to boost electrification, thereby reducing fossil fuel dependence.
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