Pension campaign welcomes new supporters, challenges capital market myths

Launched in July 2025, the campaign also celebrates positive momentum to date, including by welcoming four major investment-focused organisations as new supporters: Pensions UK, the International Corporate Governance Network (ICGN), the Principles for Responsible Investment (PRI), and the UK Sustainable Investment and Finance Association (UKSIF), with membership AUM of over £2 trillion, US$90 trillion, US$139.6 trillion, and £19 trillion, respectively. 

Myth-busting misconceptions

The GGIC paper corrects commonly held myths around corporate governance standards and their impact on capital markets, which it argues have allowed for the weakening of important shareholder rights mechanisms and governance standards. 

Fact 1. Corporate governance standards are positive for company performance

The report highlights the extensive evidence that, while there is scope for some governance regulations to be streamlined, sensible governance and shareholder rights mechanisms make for strong economic growth by improving innovation and productivity, and preventing costly mistakes. Exemplifying this, it outlines several examples of weak governance at companies in the last decade that have led to job losses, loss of confidence and significant losses to taxpayers. These include: BHS (2016), Carillion (2018), Bulb (2021) and Wilko (2023).  The paper also emphasises the governance failures elsewhere that the UK has managed to avoid owing to its historically more robust approach. 

Fact 2. High governance standards do not drive companies to list elsewhere

A historical analysis covering the period between 2018 and 2025 of 53 UK-headquartered or UK-focused companies that opted to list or move their listing to the US found that only one UK company cited corporate governance standards as a driver for listing in the US. Where motivations were provided, the GGIC notes, they more commonly mentioned enhanced liquidity, the potential for higher valuations, and broader access to US capital markets.  The GGIC argues these deep pools of high-quality capital can only be achieved if a market and its companies are attractive to investors, and enable investors to work in partnership with portfolio companies toward long-term value creation. 

Fact 3. Long-term investors hugely value shareholder rights and accountability, but policymakers must do more to incorporate their views 

Recent GGIC and Opinium polling found that 61% of scheme investment decision-makers said that shareholder rights and investor protections mechanisms are “very important” when making company-specific investment decisions.  Despite this, only 36% of international and domestic scheme investment decision-makers said they felt that the UK government had a very strong commitment to listening to the needs of pension schemes and long-term investors. 

In the same survey, 55% of scheme investment decision-makers said the 2024 UK listing rules reforms had made UK-listed companies appear riskier to invest in.  Larger pension schemes, with 50,000 or more members, were even more likely to think the latest rule changes have made the UK riskier to invest in (67%). Although scheme investors are often comfortable with higher risk opportunities due to their longer time horizons, the GGIC notes, they need to see increased risk rewarded by increased returns – which means that UK companies’ expected cost of capital may rise.

Caroline Escott, Head of Investment Stewardship and Co-Head of Sustainable Ownership at Railpen said:  “As UK pension schemes, investing on behalf of millions of UK savers, we want to see our domestic companies and capital markets thrive. While there is still much to celebrate about the UK as a destination for capital, sound policymaking must rest on solid evidence. This is why our campaign’s paper seeks to set the record straight: good governance supports economic growth, does not deter public listings, and is of utmost importance to the kinds of long-term capital that policymakers are rightly keen to attract. We welcome the positivity with which our work has already been met by policymakers, and will continue to work with UK politicians and regulators next year to make the case for incorporating good governance into capital markets and economic policymaking.”  

2026 policy priorities

Pension schemes are important capital allocators – increasingly so, as they continue to scale and consolidate. With polling showing their views are being overlooked, the GGIC campaign asks the following of policymakers going into 2026:

• Advocate for good governance initiatives in debates on the planned Draft Audit Reform and Corporate Governance Bill, such as Audit and Assurance Plans and Resilience Statements and outlawing virtual-only AGMs.
• Ask for further and formal inclusion of scheme investors in key capital markets decision-making forums, such as the Financial Conduct Authority’s Listing Authority Advisory Panel.
• Support GGIC proposals for addressing fragmentation and removing artificial divides between public and private markets, such as an approach to Public Interest Entity (PIE) status that genuinely reflects the ‘public interest’ status of relevant private companies, and disclosure requirements for companies moving from AIM to Main Market.
• Use debates, committee work or media appearances to champion the contribution of high standards of governance to the UK’s USP as a destination for capital.

Campaign gets boost from new supporters 

Since launching, the GGIC has had a series of encouraging meetings with a cross-section of government departments, market participants, regulators and political decision-makers. Building on this, and demonstrating the positive impact the campaign is having, the GGIC today welcomes four new major investor organisations as new supporters to the campaign: Pensions UK, the ICGN, the PRI, and UKSIF, who will lend their resources and skillsets towards furthering the campaign’s objectives.

Anna Gelderd, Labour Member of Parliament for South East Cornwall said: “It’s encouraging to see UK pension schemes and businesses engaging constructively on how we can shape the future of our capital markets and support long-term, sustainable growth. The UK has a real opportunity to build a policy and governance environment that attracts investment and helps businesses thrive, while delivering value for savers and the wider economy.”  

Jen Sisson, CEO, ICGN, noted: “ICGN is proud to support this important initiative. Across our global investor network, we have long championed meaningful reform and the highest standards of governance — not a race to the bottom, but a race to build better businesses. Decades of evidence confirm that ‘G is Key’: strong governance is the engine of corporate success, market integrity, and enduring value creation.”

Tiffany Tsang, Head of DB, LGPS and Investment at Pensions UK, said: “Pensions UK is pleased to support the GGIC. We have consistently championed the principle that strong governance and sustainable growth are mutually reinforcing. This initiative reflects our enduring commitment to transparency, shareholder rights, and collective engagement, ensuring savers’ interests remain protected while enabling companies to access capital and thrive responsibly.”

Nathan Fabian, Chief Sustainable Systems Officer, PRI, commented: “The PRI supports the GGIC’s call to strengthen corporate governance across the UK’s capital markets. Robust and transparent corporate governance is the foundation of an attractive, well-functioning, and sustainable financial system. We see strong alignment between the goals of long-term investors—such as UK pension schemes—and the government’s ambition for a thriving, innovative economy. For these diversified investors, returns are shaped by the health of the overall economy—making high-quality governance standards and the protection of shareholder rights essential to delivering sustainable, long-term financial outcomes.”

UKSIF CEO James Alexander said:  “We are pleased to welcome the GGIC’s work promoting responsible business practices and long-term growth, which recognises the vital role of good corporate governance standards. Good governance is the bedrock on which the UK has built its reputation as a trusted and globally respected destination for international investment. When governance practices fall short, the consequences are felt by businesses, investors, employees and consumers alike. We can retain our leadership in this field if we continue to uphold high-quality and proportionate standards.”