For many asset owners, the new UK Stewardship Code feels like just another reporting burden – a box-ticking exercise that eats up resources and time. But the Code can become something far more powerful: a lever for influence, accountability and leadership across the investment chain.
The Shift: From Passive Reporting to Active Stewardship Oversight
Historically, many asset owners delegated stewardship responsibilities to their managers and passively accepted whatever engagement reports they received. But the revision of the UK Stewardship Code and evolving expectations around ESG accountability have changed the game.
It’s no longer enough to rely on generic manager reports or vague summaries of ‘active ownership.’ The Code now places clear responsibilities on asset owners to demonstrate how they monitor, influence, and hold their managers to account on ESG and engagement matters.
The Data Dilemma: Too Much, Too Fragmented
The challenge? Engagement data today is often siloed across multiple managers, spreadsheets, and email threads.
Tracking which managers engaged on which issues, with which companies, and what the outcomes were is a logistical headache.
This fragmentation makes it difficult for asset owners to:
- Compare manager performance
- Identify gaps between stewardship policies and real-world outcomes
- Communicate a clear stewardship story to trustees, regulators, and beneficiaries
The Solution: Technology-Enabled Stewardship Oversight
This is where technology can transform Stewardship Code compliance into a strategic advantage.
Platforms like the Maanch Engagement Tracker enable asset owners to:
- Consolidate engagement data across all their asset managers
- Track engagement themes (e.g., climate risk, diversity, human rights) across their portfolio
- Monitor escalation steps taken by managers on critical issues
- Generate tailored reports aligned with the Code’s 12 Principles
This shift from static reporting to dynamic oversight gives asset owners the tools to ask better questions, set clearer stewardship expectations, and ensure that engagement is driving measurable outcomes.
How Asset Owners Can Lead on Stewardship Code Implementation
Here are four actionable steps for asset owners to turn Code compliance into influence:
- Define Stewardship Expectations for Managers
Go beyond broad ESG statements. Set clear reporting requirements on engagement themes, outcomes, and escalation processes. - Centralise Data Management
Adopt a digital platform to bring together disparate data streams from multiple managers. This ensures a single source of truth for all stewardship activities. - Benchmark Manager Performance
Use data analytics to compare manager engagement effectiveness over time. Who is driving real outcomes? Who is just reporting activity? - Report Strategically
Use your stewardship report not just to comply, but to showcase leadership, influence asset managers, and build trust with your beneficiaries.
How the Stewardship Code Empowers Asset Owners
In an investment landscape where ESG credibility and transparency increasingly shape reputation and decision-making, asset owners have a unique chance to lead.
By investing in the right stewardship technology and embracing a data-driven approach, asset owners can move from passive recipients of engagement updates to active stewards of capital influence.
The Stewardship Code is no longer just a compliance requirement. It’s a tool for turning data into influence, and shaping the future of responsible investment.
Interested in taking control of your stewardship data?
Contact us for a demo of the Maanch Engagement Tracker.
