The UK’s new Stewardship Code, developed following extensive stakeholder feedback and practical experience from the 2020 Code, redefines stewardship to focus on creating long-term sustainable value for clients and beneficiaries, while removing explicit references to environmental and societal benefits - a polarising decision in the eyes of many.  

Reporting requirements have been streamlined into a two-part system: a Policy and Context Disclosure updated every four years and an annual Activities and Outcomes Report. This structure is intended to reduce duplication and reporting burdens, allowing organisations to better tailor submissions to their actual activities.

The Code also simplifies principles for asset owners, managers and service providers, with differentiated expectations based on their roles. However, some stakeholders have reservations about whether these changes will have a positive impact on the quality of disclosure that the previous 2020 Code offered and increased flexibility may challenge those new to stewardship or lacking internal expertise.

A transition year will take place in 2026, with existing signatories retaining their status while adapting to the new framework. The Financial Reporting Council (FRC) is providing guidance and resources to support organisations through the change, with application windows in spring and autumn 2026. This includes two sets of guidance focused on stewardship code reporting released last month, as reported by Minerva Analytics.