Investors will gather in London next week to explore how to improve stewardship, as debate intensifies around the world on the role of governance and shareholders.

The International Corporate Governance Network (ICGN) will host its annual Global Stewardship Forum in London to discuss issues as contentious as assessing corporate commitments to climate change and capital allocation.

Jen Sisson, chief executive of ICGN, says good stewardship is a “critical” part of the investment process.

“As two major stewardship codes (in the UK and Japan) are about to be revised, this is a great opportunity to bring together some of the world’s leading experts in the space and think about how we can make stewardship more effective, on the basis that everyone shares the goal of companies generating sustainable, long-term returns to fund wealth creation and pensions.”

Cutting reporting requirements

In July, UK regulators announced major updates to the UK stewardship code to cut reporting requirements and focus on key areas including ESG integration, voting and engagement, reporting, and diversity and inclusion.

The code has previously faced criticism for placing a heavy reporting burden on investors and for a lack of clarity. A formal consultation on the code is expected later this year.

In 2019, the stewardship code went through an earlier revision in which the reporting requirements were shifted to focus on outcomes of investor policies rather than inputs.

A statement from the FRC on the current review says that it is right that regulators ensure the “code is operating in a way that is proportionate and minimises reporting burdens on signatories and supports the growth and effectiveness of the UK capital markets.”

Around 280 investment firms are now signatories to the UK code.

In Japan, the ICGN has taken part in consultation on the Asset Owners Principles aimed at promoting the use of ESG in investment decisions and engagement with investment firms. The principles introduce a definition of fiduciary duty for the Japanese market and use a “comply or explain” approach.

ICGN has made a name for itself in recently challenging regulatory changes it believes fail to benefit shareholders. It has criticised recent rule changes for dual-class shares in the UK and reforms planned for the election of directors to Italian boards.

The ICGN 2024 Global Stewardship Forum takes place on Thursday 26 and Friday 27 September in London at Cavendish Venues, 22 Duchess Mews, London, W1G 9DT. See the full conference programme.