Pensions for Purpose's response to the UK stewardship code consultation focuses on maintaining high standards, clear reporting, and ensuring effective stewardship.

We have shared our views on the proposed change to the code:

Question 1:
Stewardship definition – the removal of ‘society’ and ‘the environment’ from the definition weakens the essential connection between the financial sector and the real world.

Question 2:
Reporting frequency –  reporting infrequently on policies and contextual information makes the process less onerous while still useful for signatories.

Question 3:
Reporting guidance – offering ‘how to report’ prompts will likely help signatories produce their reports

Question 4:
Principles for asset owners and managers – applying principles only to those directly managing assets is sensible given stewardship varies by asset access, but care is needed to avoid excluding relevant principles.

Question 7:
Streamlined principles – the removal of the principle on escalation, and merging of the principles on collaboration with engagement risk weakening stewardship; the FRC should retain both principles.

Question 8:
External information in reporting – better coordination to centralise disclosures and ensure reporting remains decision-useful.

Learn more here