IIGCC has responded to the Financial Reporting Council's (FRC) call for suggestions on its additional Guidance to the UK Stewardship Code.
Our full response on the additional guidance, developed with consultation from members, including joint roundtables with PRI and UKSIF, was submitted to the FRC last week and is available to read below.
The FRC’s proposed additional guidance to the UK Stewardship Code provides sought-after support for investors seeking to improve the quality and consistency of their reporting in a flexible manner. The draft guidance elevates the ambition of the Code and its signatories, articulating to signatories what “effective reporting” might constitute, helpfully providing insight, not instruction.
In our response, we highlight where the FRC can continue to advance critical stewardship concepts. The Guidance provides opportunities to refine definitions of both engagement and outcomes, helping to create clearer distinctions that strengthen comparability and ambition.
The suggestions we have provided are closely aligned with our formal response to the FRC's UK Stewardship Code consultation earlier this year, where we strongly urged for explicit links to be made between sustainable long-term value and climate change.
Stewardship is at the heart of our drive to reduce real economy emissions. Stewardship and engagement across asset classes is fundamental to achieving real-economy emission reductions and mitigating the risks presented by climate change.
Read our Response to the FRC UK Stewardship Code consultation
We are pleased to have had an opportunity to offer suggestions prior to publication. It will help to ensure that the Guidance is relevant, practical and useful as it evolves. We look forward to the FRC's continued engagement with investors on the UK Stewardship Code to ensure that the guidance is relevant, practical and useful.