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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.
In 2015, the group also submitted its first application to the Financial Reporting Council’s (FRC) UK StewardshipCode. “An An approved StewardshipCode status is basically a baseline entry to pitch for institutional business around responsible investment,” Crossman explained.
Best practice As a Financial Conduct Authority-regulated asset manager, LPPI has maintained its UK StewardshipCode signatory status for the past three years. Deakin is a strong advocate of the code. The StewardshipCode is currently under review , with the new version expected in early 2025.
“These new requirements are part of a bigger push right across the economy for new standards on environmental reporting to weed out greenwashing and support our transition to a netzero financial system – for example, through our new Sustainability Disclosure Requirements ,” she said.
Green Finance Strategy outlines the government’s plans to align the finance sector with its netzero commitments. 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.
Asset owner makes progress on climate and asset manager information-sharing in first year as StewardshipCode signatory. Last year, Phoenix also became a signatory of the Financial Reporting Council’s UK StewardshipCode. Piani described the code as being “pivotal” to the development of the firm’s engagement strategy. “It
DP23/1, released in February, focused on the capabilities needed by FCA-regulated firms to support both economy-wide transition to netzero and sustainable business models more broadly. We want to continue to engage actively on these topics.”
Stewardship is widely considered one of the most effective tools in an asset owner’s toolbox to ensure companies are prioritising ESG-related issues, such as mitigating the effects of climate change. . “ The DWP pointed to the IIGCC’s NetZeroStewardship Toolkit as a useful resource.
Has your asset manager published a UK StewardshipCode statement? If your asset manager is a signatory to the UK StewardshipCode, then this insight is more likely to be central to their investment approach. The UK StewardshipCode sets high stewardship standards for asset managers.
In the final quarter of 2023, the FRC – working with the FCA, Department for Work and Pensions (DWP) and The Pensions Regulator – will review the regulatory framework for effective stewardship, including the operation of the StewardshipCode.
Taking climate risks as an example, substantial investment is required in climate solutions such as renewable energy to successfully transition to a net-zero economy. There are several options trustees can use to show that they are actively monitoring and engaging with managers of pooled funds, according to TPR.
In 2020, the FSA tightened the StewardshipCode to redefine responsibilities and explicitly instruct institutional investors “to consider sustainability (medium- to long-term sustainability including ESG factors) according to their investment management strategies in the course of their constructive engagement with investee companies”. “I’m
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 is a Tier 1 signatory to the UK’s StewardshipCode, a signatory of the Climate Action 100+ and a member of the LAPFF. The LPFA will publish its netzero plan this September, having made a netzero commitment in September 2021. billion of assets, as of 31 March 2021.
As well as Statements of Investment Principles or Implementation Statements required by the UK’s Pensions Regulator, which require reporting on fund managers’ stewardship activities, trustees must ensure their funds are managed and report in line with the recommendations of the Task Force on Climate-Related Disclosures.
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.
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.
Laith Cahill, Senior NetZeroStewardship Specialist at the IIGCC, says the UK’s streamlined StewardshipCode must preserve its ambition. Since its last update in 2019, the landscape for stewardship and reporting has evolved drastically. These are both critical elements in investors’ stewardship toolkits.
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
Story time – The halfway point of the calendar year brings forth a stream of impact and sustainability reports from asset managers and owners, particularly in the UK, as signatories also comply with their obligations under the StewardshipCode. Sounds familiar? That’s because it is.
Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardshipcode. But there are few telling indicators to be found in the long-awaited 2024 Target Disclosures Report , published this week by the NetZero Asset Managers (NZAM) initiative.
A letter to insurers from US state attorneys-general could have broad implications for the finance sector’s coordinated efforts to support netzero goals. None explained their actions (unlike Munich Re , which left in March); all committed to pursuing netzero goals individually. End of the line? –
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.
Almost certainly, few of the dozens of offered examples met Edmans’ criteria, but at least the exercise provided a snapshot of where managers think they are making a difference, and is quicker than reading their StewardshipCode reports. The post Take Five: Think Big appeared first on ESG Investor.
Resource-rich – While Shell’s plan came under renewed scrutiny, the path to credible netzero transition by corporates has taken a number of steps forward internationally and in Europe in recent weeks. But it was the energy transition’s impact on mineral-rich developing countries that was in focus for some at COP29.
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.
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