The Financial Reporting Council published a list of signatories to the U.K. Stewardship Code on Monday.
The FRC said in a release that two-thirds of 189 applicants representing asset owners, managers and service providers made the 2020 signatories list, with those 125 representing a collective £20 trillion ($27.7 trillion) in assets.
The voluntary code defines stewardship as the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. It applies to asset owners, asset managers for U.K. clients or investing in U.K. assets, and service providers including investment consultants, proxy advisors, and data and research providers supporting stewardship activity.
The FRC release reported seeing that investors are better integrating stewardship ESG factors into their investment decision-making, reporting on more asset classes and governance activity, and identifying outcomes.
Applicants not making the list either did not address all the code's principles or give enough evidence beyond policy statements. To remain signatories, organizations must keep improving their reporting as market practice and expectations evolve, the FRC said.
Clay Lambiotte, head of investment at Lane Clark & Peacock, a code signatory that produced its own stewardship report this year, said in a separate release that it "is clear from the list that these principles are not yet being demonstrably implemented across the whole industry to the standard that the FRC expects. This needs to change and we will continue to work on an industry-wide basis to increase rates of adoption."
