Lessons from the Updated UK Stewardship Code

• Jurisdiction: European Union
• Year: 2021
• Author: Vanessa Knapp

Speaker

Professor Vanessa Knapp OBE is a Visiting Professor in the Department of Law, Queen Mary University of London and an Honorary Professor in the Brunel Law School, Brunel University London. She is the UK representative on the company law committee of the Council of Bars and Law Societies of Europe. She was a partner at Freshfields Bruckhaus Deringer LLP for many years. She was awarded an OBE (Officer of the Order of the British Empire) in 2007 for services to corporate law.

Topic

This presentation is dedicated to exploring the significant developments in the UK Stewardship Code, which has undergone a transformative update introducing an outcomes-focused approach to stewardship. We will delve into the key principles and activities that signatories must embrace to align with this progressive framework.

The UK Stewardship Code, known for its influence on promoting responsible investment and sustainable business practices, has recently embraced a paradigm shift in its philosophy. This strategic evolution now places greater emphasis on outcomes rather than mere adherence to prescribed guidelines, making it more dynamic and impactful in today's ever-changing financial landscape.

At the core of this new outcomes-focused approach lies the principle of accountability. Signatories are now encouraged to take ownership of their stewardship activities, ensuring that their decisions and actions contribute positively to long-term value creation for their beneficiaries and the broader society. This shift underscores the importance of active engagement and collaboration between investors and companies, fostering a stronger sense of responsibility and shared purpose.

The updated Code also emphasizes the significance of comprehensive and transparent reporting. Signatories are expected to provide detailed insights into their stewardship practices, disclosing their strategies, objectives, and outcomes. This increased transparency not only enhances trust and credibility among stakeholders but also facilitates peer learning and benchmarking, promoting best practices across the investment community.

Furthermore, the Code outlines specific activities that...