Despite an increased focus on ESG, the Code has received criticism for providing less stringent requirements than an earlier proposal.

By Paul A. Davies and Michael D. Green

The Financial Reporting Council (FRC) has published the final draft of the UK Stewardship Code 2020 (the Code), which sets out standards for UK institutional investors to adopt when engaging with their investments. Effective 1 January 2020, the revised Code places a greater focus on environment, social, and governance (ESG) matters. The changes reflect increased public interest in ESG since the UK Stewardship Code was last updated in 2012.