Revised Code for Stewards Simplifies Reporting Obligations

Under the revised Stewardship Code, British corporations will face decreased disclosure requirements moving forward. This new regulation lessens their reporting duties.

, and Administrator

2025 June 4 . 9:46 AM

2 min read

Future disclosures by British companies will be minimal due to the implementation of the revised... — Future disclosures by British companies will be minimal due to the implementation of the revised Stewardship Code, which significantly reduces their reporting requirements.

Streamlining Stewardship: The Revised UK Code

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Revised Code for Stewards Simplifies Reporting Obligations

The Financial Reporting Council (FRC) has introduced the 2026 UK Stewardship Code, simplifying reporting practices and focusing on long-term sustainable value creation, following a wide-ranging consultation spanning over 1,500 stakeholders. Richard Moriarty, the head of the UK's accounting watchdog, announced that the expected scope of reporting could decrease by up to 30%, relaying the news to the "Sunday Times".

In this new phase, stewardship is defined with renewed emphasis on creating long-term sustainable value for clients and beneficiaries, moving away from an explicit inclusion of Environmental, Social, and Governance (ESG) factors in the definition, a shift that has elicited some disappointment from certain stakeholders.

Key Adjustments

Reduced Reporting Burden: The code presents a shortened list of principles and streamlined reporting prompts, aiming to eliminate the 'box-ticking' approach and simplify the process for signatories, saving potential 20-30% on the reporting volume [5].
Improved Engagement Quality: The 2026 Code emphasizes enhancing engagement quality by encouraging more meaningful conversations over mere compliance [5].

Impact on Company Reporting

Eased Reporting Obligations: The revised code features fewer principles and more succinct guidelines, promising a lighter reporting burden for companies incorporating the code. This modification could lead to cost savings and an efficient allocation of resources.
Quality over Quantity: The shift towards quality over detailed reporting expectations could encourage companies to focus on the quality of their stewardship activities rather than merely satisfying reporting requirements.
Transition Period: The FRC offers a 2026 transition year, allowing current signatories ample time to adapt to the new code without fearing removal from the signatory list, ensuring a smooth transition for companies to acclimatize to the updated reporting practices [5].

Overall, the revised code aims to streamline and strengthen stewardship practices, while reducing administrative chores for signatories. Although the omission of ESG from the definition could potentially impact how companies incorporate these factors in their stewardship strategies.

The Financial Reporting Council's 2026 UK Stewardship Code, which aims to simplify reporting practices and focus on long-term sustainable value creation, is expected to decrease the reporting burden for signatories by up to 30%,according to Richard Moriarty, the head of the UK's accounting watchdog.
In the new phase, the revised code presents a shortened list of principles and streamlined reporting prompts, encouraging more meaningful conversations over mere compliance, potentially saving signatories 20-30% on the reporting volume.