The Financial Reporting Council, or FRC, is facing pushback from some of the U.K.'s largest asset managers regarding proposals to disclose details on how they tackle environmental, social and governance, or ESG, issues, Reuters reported.

The FRC, via the U.K. Stewardship Code, sets best practices for funds' oversight into firms they invest in. Following criticism regarding the code's laxness, the FRC want signatories to divulge more details on company meetings concerning ESG issues and to produce an annual report on their efforts.

For asset manager firms this is problematic, arguing that disclosing too much information could hinder efforts to change corporate behavior.

Allianz Global Investors, part of Allianz Group, and Jupiter Fund Management PLC are among those that have warned that too-prescriptive rules could damage shareholder value if firms focus on short-term engagement.