Corporate governance reporting: progress and challenges
In its Annual Review of Corporate Governance Reporting, the UK’s Financial Reporting Council (FRC) acknowledges improvements in reporting quality against the UK Corporate Governance Code by listed entities in that country. It also points out persistent challenges. The review praises transparent reporting of departures from the Code, emphasising the importance of building understanding over mere compliance. However, areas of concern include unclear explanations and a lack of consistency in the quality of reporting.
The FRC notes a prevalence of boilerplate language that falls short of meeting stakeholder expectations for meaningful explanations.
Mark Babington, FRC Executive Director of Regulatory Standards, underscored the need for comprehensive reporting that provides genuine insights into governance outcomes and actions. He emphasised that effective corporate governance disclosures are essential for building trust and understanding, moving beyond compliance to showcase the UK as an attractive investment market.
Read the report here.