Revised code shifts the emphasis from stating policies to assessing outcomes, with ESG and climate named as key areas for companies to take into account.
Investor engagement with boards and companies is set to come under much closer scrutiny following the release of a new stewardship code by the UK’s watchdog for corporate reporting and governance.
The Financial Reporting Council (FRC) published the new code this week confirming, as expected, that it would place a much heavier emphasis on outputs rather than inputs: signatories to the code must report on their actual stewardship activities and their outcomes, rather than just their policies.
Recommendations to shift the emphasis of the code, or abolish it, were made a report last year by Sir John Kingman after he had reviewed the work
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