The FRC has welcomed the Independent report on growing a culture of social impact investing in the UK.
The Financial Reporting Council (‘FRC’) has welcomed the recommendations of the UK government’s independent advisory group’s report on growing a culture of social impact investing in the UK, which promotes sustainable and inclusive growth by generating a culture of social impact investment.
The FRC has indicated its intention to incorporate the need for companies to link corporate governance to purpose, undertake engagement with wider stakeholders, and consider how they benefit wider society in changes to the UK Corporate Governance Code.
The Strategic Report and FRC guidance thereon, already requires companies to report on environmental, employee, social, community and human rights matters. As part of the FRC’s recent consultation on amendments to the Guidance on the Strategic Report the FRC encouraged companies to consider the impact of their activities on a wider group of stakeholders and those matters that contribute to the long term success of the company.
The FRC are currently reviewing the responses to its consultation on the Strategic Report and developing guidance. Changes to the UK Corporate Governance Code will be consulted on in due course.