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UK Stewardship Code to Benefit from Fine-tuning

Chris Hall

A review of the UK Stewardship Code 2020 should prompt evolution rather than revolution, according to industry experts, who want to see refinement aimed at further improving outcomes. The post UK Stewardship Code to Benefit from Fine-tuning appeared first on ESG Investor.

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APAC’s Race to the Top 

Chris Hall

Shaking up existing stewardship practices can take time, especially when the current approach is so deeply embedded. Many countries in Asia already have stewardship codes in place, including Japan, Singapore, Hong Kong and South Korea. Koreas value-up programme is inspired by a similar initiative in Japan.

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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. These are both critical elements in investors’ stewardship toolkits.

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The Spirit of Partnership

Chris Hall

Examples include the weakening support from asset managers for ESG-related resolutions in recent proxy voting seasons, and the withdrawal of large US asset managers from Climate Action 100+ and the Net Zero Asset Managers initiative. Dynamic situation The timing of the release of the climate stewardship principles is illuminating.

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The Long Game

Chris Hall

In 2015, the group also submitted its first application to the Financial Reporting Council’s (FRC) UK Stewardship Code. “An An approved Stewardship Code status is basically a baseline entry to pitch for institutional business around responsible investment,” Crossman explained.

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The Key to Effective Stewardship

Chris Hall

Best practice As a Financial Conduct Authority-regulated asset manager, LPPI has maintained its UK Stewardship Code signatory status for the past three years. Deakin is a strong advocate of the code. The Stewardship Code is currently under review , with the new version expected in early 2025.

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Take Five: Ready to Engage

Chris Hall

Proposals to bolster sustainable finance in Europe include recommendations for a new region-wide stewardship code. But there are few telling indicators to be found in the long-awaited 2024 Target Disclosures Report , published this week by the Net Zero Asset Managers (NZAM) initiative.