In addition to our direct engagement program, we also subscribe to Regnan's engagement service to complement our own active ownership practices.
Regnan prioritises engagement via a formal process that involves internal prioritisation, which we as a client approve in consultation with them. Its prioritisation process is based on three primary factors:
1. The value at risk for the company from E S and G issues (and conversely to the upside potential from change) based on in-house research focused on the gap between a company's ESG exposure and its response to it.
2. The extent to which clients are exposed to the company, using a combination of client data where available and market capitalisation as a proxy for portfolio weight.
3. The additionality of impact when engaging on an issue that already receives widespread attention.
Where sensitivities arise, for instance due to contentious proxy voting matters or divestment pressures, elements of the existing plan may be elevated in relative priority, or additional companies may be added. In these instances, additional information may also be provided to assist us in preparing for meeting, and/or responses to, interested parties.
Regnan also conducts bespoke engagements at the request of its clients to address any ESG issue that is not currently within Regnan's core engagement program and/or is with a company outside the scope of the current engagement program.