The Financial Reporting Council (FRC) has highlighted improvements across multiple areas of stewardship in its Review of Stewardship Reporting 2022 report.

In comparison to 2021, the report detailed improvements in the quality and activity, and outcome reporting for engagement, collaboration and escalation.

Furthermore, there were improvements in reporting on contributions made to address market-wide and systemic risks, and reporting on how signatories monitor and hold service providers to account.

Despite this, the FRC stated that there still needed to be greater emphasis placed on activities and outcomes during the reporting period, using both quantitative and qualitative evidence.

The report also outlined the FRC’s key areas for focus in 2023, which include reporting on the outcomes of engagement and providing case studies to illustrate both the activity in the year and progress towards these outcomes.

Aiming to support stakeholders’ continued improvement, the FRC detailed guidance on the reporting of exercising rights and responsibilities, and monitoring and holding third-party managers to account.

Furthermore, the report set out ‘key messages’ from the stewardship reports assessed in spring 2022, outlined expectations for reporting in 2023, and highlighted changes to the application deadlines for 2023.

“High-quality stewardship plays a vital role in ensuring that investments are responsibly managed and create long-term value for savers of all types, as well as wider benefits for the economy, the environment and society,” commented FRC executive director of regulatory standards, Mark Babington.

“High-quality reporting and accountability in investment and governance decisions affect us all and the continuing improvement of reporting is very encouraging.”

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