Backing for the UK Stewardship Code has continued to grow following the latest round of applications, with a total of 273 organisations now signed up to the code, including 188 asset managers, 66 asset owners and 19 service providers.

The code, which the Financial Reporting Council (FRC) has committed to reviewing this year, aims to enhance the quality of engagement between investors and companies to help improve long-term returns to shareholders and efficient exercise of governance responsibilities.

The latest round of applications saw a total of 81 organisations renew their status, while one additional organisation was added.

The FRC said it welcomes improvements in outcomes-based reporting, highlighting the successful submissions as demonstration of the general improvement of stewardship practice seen across asset classes from asset owners, asset managers and providers.

In addition to this, the FRC said that it has seen increased reporting on key stewardship themes, including human rights issues in supply chains, nature-based solutions and biodiversity, while climate change continues to be a key area of engagement and focus.

Looking to support future applicants, the FRC also shared a new document, collating previously published guidance, to help signatories and applicants to the code prepare fair, balanced and understandable reports in 2024.

It provides recommendations to help organisations produce high-quality stewardship reports that demonstrate how they have applied the code's principles across areas such as investment research, decision-making, monitoring, engagement, and exercising voting rights.

Commenting on the update, FRC executive director of regulatory standards, Mark Babington, said: “My congratulations to the successful signatories to the UK Stewardship Code. It’s great to see the continued improvement in outcomes-based reporting amongst a general improvement of stewardship practice.

“I look forward to hearing from our stakeholders later this year as we look to review the code.”

---