UK’s FRC to Demand More Evidence on Stewardship Outcomes

The Financial Reporting Council (FRC) “will place more emphasis” on the reporting of activities and outcomes, when assessing the 2023 reports of signatories of the UK Stewardship Code. In its review of 2022 submissions from asset managers and owners, the FRC recognised improvements in the quality of activity and outcome reporting for engagement, collaboration and escalation. It also welcomed signatories’ efforts to address systemic risks, monitor third parties and extend stewardship beyond equity investments. But it also called for them to improve reporting of activities and outcomes during the reporting period in question, using both quantitative and qualitative evidence. Particularly for Principles 4 and 7 to 12 of the code, which cover investment approach and engagement, firms should “include multiple case studies to evidence the activities undertaken in the reporting year and the outcomes of those”.



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