Shareholder rights and investor protections remain a top priority for schemes, according to new Governance for Growth Investor Campaign (GGIC) and Opinium polling showing that 61 per cent of investment decision-makers consider these mechanisms “very important” in company-level decisions.

The finding was revealed in the GGIC’s new paper that sets out to correct common misconceptions around corporate governance standards and their impact on capital markets, which it argued have allowed shareholder rights mechanisms and governance standards to be weakened.

Indeed, one of the myths is that long-term investors do not value shareholder rights and accountability, which the survey proves otherwise. Despite this, only 36 per cent of international and domestic scheme investment decision-makers said they felt that the UK government had a very strong commitment to listening to the needs of pension schemes and long-term investors.

In the same survey, 55 per cent of scheme investment decision-makers said the 2024 UK listing rules reforms had made UK-listed companies appear riskier to invest in. Larger pension schemes, with 50,000 or more members, were even more likely to think the latest rule changes have made the UK riskier to invest in (67 per cent).

The GGIC noted that although scheme investors are often comfortable with higher risk opportunities due to their longer time horizons, they need to see increased risk rewarded by increased returns, which means that UK companies’ expected cost of capital may rise.

The paper also highlighted evidence that suggests corporate governance standards are a positive for company performance. It noted that “sensible governance and shareholder rights mechanisms make for strong economic growth” but admitted that there is “scope for some governance regulations to be streamlined”.

The GGIC provided examples of weak governance at companies in the past decade that have led to job losses, loss of confidence and significant losses to taxpayers. These include: BHS (2016), Carillion (2018), Bulb (2021) and Wilko (2023).

In proving another misconception to be wrong, the GGIC undertook a historical analysis of the period 2018-2025 of 53 UK-headquartered or UK-focused companies that opted to list or move their listing to the US. It found that only one UK company cited corporate governance standards as a driver for listing in the US, which it argued proves that high governance standards do not drive companies to list elsewhere.

Where motivations were provided, the GGIC said they most commonly cited enhanced liquidity, the potential for higher valuations and wider access to US capital markets. The group stressed that these deep pools of high-quality capital depend on markets and companies being attractive to investors and enabling collaborative, long-term value creation with portfolio companies.

Commenting on the findings, Railpen co-head of sustainable ownership and head of investment stewardship, Caroline Escott, said: “As UK pension schemes, investing on behalf of millions of UK savers, we want to see our domestic companies and capital markets thrive. While there is still much to celebrate about the UK as a destination for capital, sound policymaking must rest on solid evidence.

“This is why our campaign’s paper seeks to set the record straight: good governance supports economic growth, does not deter public listings, and is of utmost importance to the kinds of long-term capital that policymakers are rightly keen to attract. We welcome the positivity with which our work has already been met by policymakers, and will continue to work with UK politicians and regulators next year to make the case for incorporating good governance into capital markets and economic policymaking.”

The GGIC has also set out its policy priorities for 2026, stressing that pension schemes, as increasingly significant capital allocators, need a stronger voice in upcoming regulatory discussions. It urged policymakers to back good governance measures in the Draft Audit Reform and Corporate Governance Bill, including the introduction of Audit and Assurance Plans, Resilience Statements and a move to prohibit virtual-only AGMs.

The campaign further called for greater formal involvement of scheme investors in key capital markets decision-making bodies, such as the Financial Conduct Authority’s Listing Authority Advisory Panel, to ensure scheme perspectives are reflected in future regulatory developments.

It also highlighted the need to address fragmentation between public and private markets, and asked decision makers to support GGIC proposals for a public interest entity definition that better reflects the role of large private companies, alongside enhanced disclosure requirements for firms transitioning from alternative investment market (AIM) to the main market.

In addition, the GGIC encouraged policymakers to use parliamentary debates, committee work and media engagement to promote the contribution of strong governance standards to the UK’s attractiveness as a destination for capital.

The £150bn GGIC was formed in July this year and initially backed by several major UK pension schemes, including Brunel Pension Partnership, The Church of England Pension Board, People’s Pension, Brightwell and Railpen.

It has also recently welcomed four new investment-focused organisations as supporters: Pensions UK, the International Corporate Governance Network (ICGN), the Principles for Responsible Investment (PRI), and the UK Sustainable Investment and Finance Association (UKSIF).

Welcoming the support, Labour MP, Anna Gelderd, said it was “encouraging to see UK pension schemes and businesses engaging constructively on how we can shape the future of our capital markets”, adding that the UK has an opportunity to build a governance environment that supports long-term, sustainable growth.

ICGN chief executive, Jen Sisson, said the organisation was “proud to support this important initiative”, highlighting its long-standing focus on high governance standards as the “engine of corporate success, market integrity, and enduring value creation”.

Pensions UK head of DB, LGPS and investment, Tiffany Tsang, also backed the move, stressing that strong governance and sustainable growth “are mutually reinforcing” and central to protecting savers’ interests.

The PRI chief sustainable systems officer, Nathan Fabian, said the campaign aligned with efforts to strengthen transparent governance across the UK’s capital markets, while UKSIF CEO, James Alexander, emphasised that good governance underpins the UK’s reputation as a trusted destination for global investment.

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