The Association of Chartered Certified Accountants (ACCA) in the UK has called on the Financial Reporting Council (FRC) to uphold robust sustainability commitments in the UK Stewardship Code.
In light of the FRC’s consultation on potential revisions to the code, ACCA has expressed concerns over the proposed definition changes, which could signal a weakening of sustainability objectives.
Commenting on the FRC’s proposal to remove ‘environment’ from the proposed stewardship definition, ACCA Policy and Insights director Mike Suffield said: “Climate-related disclosures continue to mature globally, shifting from tick-box statements to demonstrable action. This is reflected in recent regulatory developments, such as the International Sustainability Standards Board (ISSB) IFRS S1 and S2.
“In the light of these trends, we are concerned about the message that this proposed change would send to the market.”
While ACCA has expressed these concerns, it also supported the general direction of the updates proposed by the FRC.
The global accountancy body supported the importance of a more streamlined approach to reporting and believes that a tailored framework could enhance the understanding and implementation of stewardship principles.
ACCA emphasised the importance of a flexible and proportionate reporting framework, which is considered crucial for fostering better practices and more meaningful engagement among signatories of the Stewardship Code.
ACCA, with a history dating back to 1904, has been instrumental in advancing accountancy standards and qualifications globally.
The organisation, which began with the mission to broaden access to the accountancy profession, now supports a diverse community of more than 252,500 members and 526,000 future members across 180 countries.
ACCA Risk Management and Corporate Governance for Policy and Insights head Rachael Johnson said: “We want to emphasise the importance of understanding rising expectations of different investors to push company boards about risk oversight and continuous monitoring of it given today’s polycrisis norm.
“We support enhanced transparency on the outcomes of different stewardship relationships, rather than the events themselves. It also is crucial to ensure that both cultural and conduct risks are included given today’s rapid digital transformations.”
Earlier in February 2025, the ACCA issued a warning regarding emerging risks within the UK’s sustainable reporting assurance market, urging vigilance despite the market’s current efficacy.
