FRC revises Stewardship Code

The FRC has published an updated UK Stewardship Code, as part of its regular review process.

Signatories will transition to the new code from 2026.

Whilst many of the changes appear to be welcomed there are concerns about the new definition of ‘stewardship’ which has less of an emphasis on environmental and social issues than previously.

The first section of the new report introduces the Code and redefines ‘stewardship’ as follows:

“The purpose of the UK Stewardship Code 2026 (the Code) is to establish the core Principles of effective stewardship and to set a high standard of transparency for asset owners and asset managers, and for the service providers that support them.

Stewardship is the responsible allocation, management and oversight of capital to create long-term sustainable value for clients and beneficiaries.

Effective stewardship supports investors to make well-informed investment decisions to deliver returns that meet the objectives of their clients and beneficiaries today, without compromising the ability to do so in the future.

In doing so, investors take account of long-term risks and opportunities, having regard to the economy, the environment and society, upon which beneficiaries’ interests depend…’

Links:

https://www.frc.org.uk/news-and-events/news/2025/06/frc-overhauls-the-investor-stewardship-code-to-focus-on-value-creation-reducing-burdens-and-enhanced-engagement-between-market-participants

https://media.frc.org.uk/documents/UK_Stewardship_Code_2026.pdf

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