FRC publishes report on effective stewardship reporting

Article summary

The Financial Reporting Council (FRC) has published a report on effective stewardship reporting, which analyses reports from the first list of 125 signatories to the revised UK Stewardship Code published in September 2021. The FRC observed a number of high-quality disclosures in the areas of governance, resourcing, and the integration of stewardship and ESG factors into investment decision-making. However, the FRC determined that there is still room for improvement in reporting on the activities and outcomes relating to conflicts of interest, review and assurance, and monitoring agents. The report aims to encourage fair, balanced and understandable reporting about stewardship. It includes examples of good reporting from 2021 and explains what the FRC expects to be included in stewardship reports for 2022.