Compared to stewardship codes drafted by the fund management industry, stewardship codes with regulatory backing...

Regulatory-backed stewardship codes are designed to enforce stronger accountability and escalation processes for investors engaging with companies.

Why C (escalation activities) is correct:

Regulatory codes emphasize escalation strategies (e.g., proxy voting, shareholder resolutions, and engagement letters).

Example: UK Stewardship Code 2020 requires investors to engage forcefully when companies fail to address material ESG risks.

Why not A or B?

A (Voting disclosure) is important but not the primary distinction between voluntary and regulatory-backed codes.

B (Conflicts of interest) is addressed in both types of stewardship codes but is not the main emphasis of regulatory-backed codes.