FRC finds improvements continue in stewardship reporting
News types: Generic Announcement, Publications
Published: 24 November 2022
The FRC has today published its ‘Review of Stewardship Reporting 2022’ that found improvements across multiple areas of Stewardship reporting compared to 2021.
The review sets out key messages from the stewardship reports assessed in Spring 2022, sets out expectations for reporting in 2023, and outlines changes to the application deadlines for 2023.
This year’s review saw improvements in the quality of activity and outcome reporting for engagement, collaboration and escalation. There were also improvements in reporting on contributions made to address market-wide and systemic risks and reporting on how signatories monitor and hold service providers to account. However, there still needs to be greater emphasis placed on activities and outcomes during the reporting period, using both quantitative and qualitative evidence.
The review outlines the FRC’s key areas of focus for 2023, which includes reporting on the outcomes of engagement and providing case studies to illustrate both the activity in the year and progress towards those outcomes. To support stakeholders' continued improvement, the review also gives guidance on the reporting of exercising rights and responsibilities and monitoring and holding third-party managers to account.
Mark Babington, Executive Director Regulatory Standards at the FRC, said:
The review sets out key messages from the stewardship reports assessed in Spring 2022, sets out expectations for reporting in 2023, and outlines changes to the application deadlines for 2023.
This year’s review saw improvements in the quality of activity and outcome reporting for engagement, collaboration and escalation. There were also improvements in reporting on contributions made to address market-wide and systemic risks and reporting on how signatories monitor and hold service providers to account. However, there still needs to be greater emphasis placed on activities and outcomes during the reporting period, using both quantitative and qualitative evidence.
The review outlines the FRC’s key areas of focus for 2023, which includes reporting on the outcomes of engagement and providing case studies to illustrate both the activity in the year and progress towards those outcomes. To support stakeholders' continued improvement, the review also gives guidance on the reporting of exercising rights and responsibilities and monitoring and holding third-party managers to account.
Mark Babington, Executive Director Regulatory Standards at the FRC, said:
“High-quality stewardship plays a vital role in ensuring that investments are responsibly managed and create long-term value for savers of all types, as well as wider benefits for the economy, the environment and society.
High-quality reporting and accountability in investment and governance decisions affect us all and the continuing improvement of reporting is very encouraging.”