Reflections: headwind for stewardship professionals

Royal London Asset Management recently partnered with Lombard Odier Investment Management and financial services recruitment specialist firm Bruin for a candid roundtable bringing together stewardship, responsible and ESG investment professionals from across the industry.

The session explored how expectations, pressures and practical realities are shaping stewardship today. Across the room, one thing was clear: despite heightened scrutiny, stewardship isn’t slowing – it’s evolving.

A spectrum of views, but a shared sense of opportunity

The event was hosted by Bruin and co-led by Carlota Garcia Manas, our Head of Climate Transition and ESG Engagement, alongside Lombard Odier’s Head of Stewardship, Rebeca Coriat.

Participants brought a wide range of perspectives on the opportunities and challenges facing stewardship and responsible investment. While a more pessimistic tone might have been expected given recent political and market noise, the conversation was notably constructive, echoing Carlota’s own reflection that optimism and opportunity appear firmly present in the industry.

Asset managers and asset owners who stayed committed to sustainability through 2025 have continued to deepen that work, sometimes more quietly, but with greater focus and determination.

A more pragmatic reporting landscape

The burden of reporting, which Carlota light‑heartedly refers to as “#DeathByReporting”, has been a longstanding tension for ESG and stewardship teams. Encouragingly, participants agreed that reporting is becoming more streamlined and more pragmatic, with the updated Financial Reporting Council’s (FRC) UK Stewardship Code 2026 helping refocus efforts on transparency that is genuinely decision‑useful rather than voluminous.

The shift is freeing up time for what matters most: meaningful stewardship activity over administrative output.

Closing skills gaps by integrating ESG and financial expertise

A key theme shared by Carlota is the need to bridge ESG expertise with broader professional skills – from diplomacy and negotiation to legal and HR‑led perspectives. This cross‑functional approach helps ensure ESG issues are not treated peripherally, but as integral components of investment judgement and stewardship practice.

Roundtable participants similarly highlighted how stewardship today requires depth: understanding sector dynamics, regulatory nuance, and increasingly, the internal workings of the companies we engage with.

Corporate governance: an essential lever for long‑term value

One of the strongest shared reflections was the need to refocus on corporate governance as a core component of effective stewardship. Boards play a critical role in oversight, decision‑making and long‑term value creation – and often, they are the audience best placed to act on stewardship insights.

Participants noted that as the industry moved through a phase heavy on ESG documentation and narrative, governance capabilities had at times been under‑developed. Re‑strengthening that discipline, particularly understanding board dynamics is essential for more impactful engagement.

Authenticity matters more than ever

As messaging across the industry becomes more nuanced, purpose‑driven asset owners increasingly expect authenticity: not just well‑crafted statements, but genuine alignment with long‑term owners’ expectations.

The roundtable reinforced that meaningful stewardship is shaped by clarity, honesty and intent and not by overclaiming, but demonstrating real alignment between stated values, investment decisions and engagement priorities.

Looking ahead

The discussion painted a picture of a stewardship discipline that is maturing: more reflective about trade‑offs, more deliberate about where influence is applied, and more focused on authentic, long‑term outcomes.

As Carlota noted, there is “plenty to reflect on” as stewardship continues to evolve and plenty of reason for optimism about the industry’s direction.

If you’d like to learn more about our stewardship approach or discuss these themes further, our team would be pleased to continue the conversation.

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The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change. Forward looking statements are subject to certain risks and uncertainties. Actual outcomes may be materially different from those expressed or implied.