3 June 2025, LONDON 

Charlotte O’Leary, CEO of Pensions for Purpose, said: "In seeking to create a code that accommodates a broad mix of legal frameworks, business models and market actors, the FRC has produced what looks like a lowest-common-denominator standard, not a leading framework. For those seeking to align capital with long-term impact, this version of the Code no longer provides a meaningful framework to do so.” 

Laasya Shekaran, Director, Pensions for Purpose, said: “We are deeply disappointed by the removal of any reference to ‘sustainable benefits for the economy, the environment and society’ in the revised UK Stewardship Code. This marks a retreat from the public purpose of stewardship – just when stronger stewardship around environmental and societal impact is more urgently needed than ever.” 

In response, Pensions for Purpose are offering an alternative, the Impact Investing Principles for Pensions, a framework for pension schemes that want to integrate impact beyond the environment and across their mandates, governance and relationships. 

The Principles support pension schemes to: 

Importantly, the Principles reflect shifting legal interpretations of fiduciary duty, recognising that many beneficiaries now reasonably expect their pension schemes to consider the long-term environmental and social factors that will shape their standards of living in retirement. 

Charlotte O’Leary continued: “The Stewardship Code has stepped back. The Principles step forward. For those seeking a more purposeful, outcomes-driven approach to investment, we invite you to sign up to the Principles.” 

Pensions for Purpose calls on all UK pension schemes, consultants and fiduciary managers to adopt the Principles and build a stewardship approach that is fit for the future. 

NOTES TO EDITORS 

About Pensions for Purpose: 

Pensions for Purpose exists as a bridge between asset managers, pension funds and their professional advisers, to encourage the flow of capital towards impact investment.