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The Financial Reporting Council (FRC) has announced 273 signatories to the UK Stewardship Code following the latest round of applications, representing £43.3tn assets under management.
This includes 188 asset managers, 66 asset owners and 19 service providers. Some 81 organisations successfully renewed their signatory status and one organisation was added.
The FRC welcomes improvements in outcomes-based reporting, and the successful submissions to the Code reflect the “general improvement of stewardship practice seen across asset classes from asset owners, asset managers and service providers”.
The FRC continues to see increased reporting on “key” stewardship themes, including human rights issues in supply chains, nature-based solutions and biodiversity, while climate change continues to be a key area of engagement and focus.
The Stewardship Code, which the FRC has committed to reviewing this year, aims to “enhance the quality of engagement between investors and companies to help improve long-term returns to shareholders and efficient exercise of governance responsibilities”.
A short document collating previously published guidance has also been published to help signatories and applicants to the Code prepare “fair”, “balanced” and “understandable” reports in 2024.
The document provides recommendations to help organisations produce “high-quality” stewardship reports that demonstrate how they have applied the Code’s principles across areas such as investment research, decision-making, monitoring, engagement, and exercising voting rights.
Mark Babington, executive director of regulatory standards, said: “My congratulations to the successful signatories to the UK Stewardship Code. It’s great to see the continued improvement in outcomes-based reporting amongst a general improvement of stewardship practice.
“I look forward to hearing from our stakeholders later this year as we look to review the Code.”
