Pensions UK said it has strengthened expectations in its revised stewardship and voting guidelines, with greater emphasis on areas including capital issuance, nature and biodiversity, and cyber risk governance.
The guide is designed to help pension fund trustees, investment managers and other institutional investors decide how to exercise their vote at annual general meetings (AGMs).
The association said the 2026 Stewardship and Voting Guidelines reflect developments from the 2025 proxy voting season, as well as changes in regulation and market practice.
“In a rapidly changing global context, marked by technological disruption, geopolitical uncertainty and shifting societal expectations, effective stewardship is more critical than ever,” Pensions UK said.
“Pension schemes have a responsibility to act as long-term stewards of capital, ensuring companies can manage risks and seize opportunities in ways that protect and grow members’ savings.”
Under the revised guidance, Pensions UK has taken a tougher stance on capital issuance and related-party transactions, particularly following reforms to the UK Listing Rules that reduced mandatory shareholder approval requirements.
While acknowledging the regulatory changes, the association said companies should continue to offer shareholder votes on significant transactions and related-party dealings as a matter of best practice.
“We reaffirm our commitment to robust governance standards and oppose bundling of resolutions that dilute shareholder rights,” the organisation said.
The guidelines also recommend that investors consider escalation where this does not occur, including voting against the chair in certain circumstances.
Nature and cyber risk
Cyber risk governance features more prominently in the 2026 guide, with Pensions UK positioning it as a core element of corporate resilience and overall risk management.
The guide points to a rise in cyber incidents and related shareholder resolutions over 2024 and 2025 and encourages investors to expect clearer board-level accountability for cyber risk, alongside improved governance structures, disclosure, scenario planning and breach reporting.
Climate stewardship remains a core part of the guidance, with an increased focus this year on nature and biodiversity, with the association urging investors to consider escalation when material nature-related risks are poorly managed or if companies fail to meet credible sustainability standards.
“This year, we propose that investors should consider voting against the chair of the sustainability committee, risk committee, or board where the company is deemed to have breached the ‘Do No Significant Harm’ (DNSH) criteria in relation to nature-related risk,” said Pensions UK.
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