The ‘second version’ of the UK Stewardship Code came into effect at the start of 2020. This chapter assesses the chances of the second version being more successful than the first. It begins by examining the most plausible reasons for the failure of the first version, referring to the capacity and the incentives of institutional investors to discharge the engagement function which the first version cast upon them. It concludes that the incentives and capacities were weak. Turning to the second version, it concludes that it has not effectively addressed the causes of the first versionʼs weakness in relation to engagement. However, regarding ESG factors, especially climate change, there are reasons to expect a more positive impact from the second version, mainly because government policy has increased the reputational incentives for institutions to exercise stewardship in this area; these may also be supported by changes in investor preferences. Overall, the second version may turn out to operate along the same lines as other changes in society rather than as an isolated reform, as with the first version, provided the governmental policy and social changes that support it continue.