The FRC have released the most recent iteration of the UK Stewardship Code(the ‘Code’), which prioritises sustainable value for beneficiaries, the economy and society – including making explicit reference to environmental, social and governance (ESG) factors – and requires signatories to integrate stewardship into their investment approach.
The new Code substantially raises expectations for how money is invested on behalf of UK savers and pensioners; and it aims to stimulate greater demand for an engaged approach to stewardship and investment decision-making which is aligned to the investment time-horizons of beneficiaries, which are often long-term.
The Code is written for asset owners and asset managers, as well as for the service providers that support them, who want to demonstrate their commitment to stewardship. Recognising that not all signatories will exercise stewardship in an identical way, the Code does not prescribe a single approach to effective stewardship, rather, it allows organisations to meet the expectations in a manner that is aligned with their own business model and strategy.
Read our summary of the code here: BLC: UK Stewardship Code 2020