FRC review of corporate governance reporting

The FRC’s latest Annual Review of Corporate Governance Reporting has found ongoing improvements in the quality of reporting against the UK Corporate Governance Code, but also identifies areas where many companies are still falling short.

The review showcases high-quality and insightful reporting by some companies, with the FRC continuing to see more transparent reporting of departures from the Code, rather than simply stating compliance. However, explanations often lack sufficient clarity, and few companies reported to a consistently high standard. The report also found many examples of boilerplate reporting using generic language that fail to meet stakeholder needs for meaningful explanations.

Little improvement was seen in the quality of reporting on risk assessment and internal controls, and more work is needed by most companies to demonstrate robust systems, governance and oversight. However, the FRC was encouraged by the increased focus on workforce engagement and stakeholder reporting, and it would now like companies to show how engagement has lead to high-quality outcomes by better reflecting on the feedback received and its impact on board decisions.

The full report is available here: FRC Annual Review of Corporate Governance Reporting 2023

Published 17 November, 2023