Recent years have seen the emergence — and proliferation — of a new kind of governance document for investors: stewardship codes. These codes can help investors optimize long-term value creation for beneficiaries by highlighting effective ways of communicating with investee companies and laying out clear guidelines for rigorous monitoring.
Twenty-four stewardship codes have been introduced around the world, mostly since 2016. The bulk of these codes are country-specific, although the International Corporate Governance Network (ICGN), the Organization for Economic Cooperation and Development (OECD), and the European Union (EU) have developed multinational stewardship principles or codes.
Stewardship codes are chiefly designed for institutional investors. While they occasionally take the form of binding regulation, more often they involve voluntary standards. Nearly half of stewardship codes are assembled by national and supranational organizations, while the rest are issued by investors or private industry participants.
Properly organized, stewardship codes can be a vital tool for promoting long-term thinking across the value chain, guiding investors and investees toward behaviors that help them see past short-term market vicissitudes and focus on longer-term measures of success. Investors can also create their own stewardship principles to emphasize the issues that are important to their particular organization and its brand.
Building on the extensive work carried out by ICGN, the Council of Institutional Investors (CII), and others, our focus is to ensure that stewardship codes around the world are targeted to advance long-term thinking in financial markets. To advance this goal of improving long-term value creation, FCLTGlobal has assembled a suite of materials for investors, investees, and regulators.
Interactive Portal for Global Stewardship Codes
An interactive tool that allows users to understand and compare existing stewardship codes from around the world. The goal is to make it easier for stewardship professionals to see how codes around the world address key stewardship principles.
Model Stewardship Code for Long-Term Behavior
A sample code highlighting the principles and approaches that promote long-term thinking and value creation
Stewardship Checklist for Long-Term Success
A list of questions to help investors ensure they're implementing policies and procedures consistent with the best long-term codes
Conversation Guide for Stewardship Teams
A step-by-step manual enabling stewardship teams to communicate effectively with portfolio managers on strategies for implementing stewardship codes that promote long-term value creation
These materials benefited from the insights and advice of a network of thought leaders drawn from FCLTGlobal's members. The final documents are our own, and the views expressed here do not necessarily represent the views of FCLTGlobal's members. We would like to thank and acknowledge the contributions of everyone who participated in the conversations and working groups that informed our research.
|Jonathan Bailey, Neuberger Berman
||Loree M. Gourley, EY
||Marina Mnatsakanian, Kempen Capital Management
|Mark Besca, EY
||Marianne Harper Gow, Baillie Gifford
||Sabastian Niles, Wachtell, Lipton, Rosen & Katz
|Neri Bukspan, EY
||Lysanne Gray, Unilever
||Anastasia Petraki, Schroders
|Mike Cantara, MFS Investment Management
||Sarah Greenberg, MSCI
||Joel Posters, Future Fund
|Kim Chong, Hong Kong Monetary Authority
||Ingrid Holmes, Hermes Investment Management
||Ted Roosevelt, Barclays
|Yolanda Courtines, Wellington Management Company
||Randall Hopkins, Nasdaq
||Saul Rubin, Wellington Management Company
|George Dallas, ICGN
||Nadine Kawkabani, MFS Investment Management
||Carolina San Martin, Wellington Management Company
|Rani Doyle, EY
||Conor Kehoe, McKinsey & Company
||Howard Sherman, MSCI
|Bruce Duguid, Hermes Investment Management
||Maria Kepa, EY
||Eric Shostal, BlackRock
|Alex Edmans, London Business School
||Rakhi Kumar, State Street Global Advisors
||Jakob Skafte, ATP
|Fiona Ellard, The Investor Forum
||Kate Leung, Hong Kong Monetary Authority
||Margaret Therrien, MFS Investment Management
|Mike Everett, Aberdeen Asset Management
||Jed Lynch, Barclays
||Harald Walkate, Natixis
|Mark Fisher, EY
||Ted McHugh, Edelman
||Jake Walko, Neuberger Berman
|Gassia Fox, BlackRock
||George Mason, MFS Investment Management
||Ali Weiner, State Street Global Advisors
|Carol Geremia, MFS Investment Management
||Terry Mellish, Natixis