UK Stewardship Code Update July 2024
On 22nd July 2024, the Financial Reporting Council (FRC) announced significant updates to the UK Stewardship Code application process.
The following immediate changes are intended to reduce the reporting burden on existing signatories:
Remove the requirement to annually disclose all ‘Context’ reporting expectations, except for new reports or material changes.
Remove the requirement to annually disclose against ’Activity‘ and ’Outcome‘ reporting expectations for some Principles.
Explicitly allow use of content from previous reporting and cross-referencing of such reports.
Set clear expectations of what is considered an ‘outcome’ for stewardship purposes.
Emphasise the ability to exercise reporting against Principles 10, collaborative engagement, and 11 escalation ‘where necessary’.
These reporting changes to the Code will apply for the next application window (31 October 2024).
Following engagement with over 1,500 stakeholders during early 2024, the FRC have also committed to five priority areas of review as it continues its revision to the code: Purpose, Principles, Proxy Advisors, Process and Positioning.
This announcement was accompanied by the list of code signatories which was updated following the latest round of applications. There are now 287 signatories representing £50.1tr in AUM including all Danesmead ESG clients who applied.
If you’d like to find our more about becoming a signatory of the UK Stewardship Code and how we can help, get in touch.