Regnan proactively contacts organisations that our has research identified as having unmitigated exposure to environmental, social and/or governance risks for long term investors, seeking specific changes.  

Regnan’s core focus for engagement is Australian listed companies (S&P/ASX200) however this extends to other organisations on an ad hoc basis, by request.
        

          Regnan has an in-house team whose focus is bottom-up proprietary research and analysis.  Information used in this process includes (but is not limited to) corporate filings, commercial and government databases, academic literature, media monitoring.  Where relevant, we also conduct investigative interviews with corporate representatives, other stakeholder groups and NGOs.
        

          One of Regnan’s core product offerings is the ESG research and analysis produced by this process.  

A second core product offering is the engagement and stewardship service which is based on risks identified by this process.
        

          The objective of Regnan’s engagement is to sustain and enhance value for clients. To this end, the three primary factors taken into account in determining engagement priorities are:  

1) The value at risk for the listed entity from that issue (and conversely the upside potential from change). The primary input to this assessment is Regnan’s research scores that focus on the gap between an entity’s exposure and its response to it. Scores are supplemented by analyst insight. 

2) The extent to which clients of our engagement service are exposed to the entity. Given that all of our engagement clients are large institutional investors, market capitalisation is used as a proxy for portfolio weight. 

3) The value of engagement activity in achieving change.  This includes considerations such as strength of business case, cost of access, capacity for change, and the additionality of Regnan’s contribution to achieving this change (when considering activity being undertaken by others).
        

          Regnan formally proposes all new engagement activity to clients and seeks approval mandate prior to commencing engagement with stocks. Proposals present Regnan’s recommendations for ESG issue and stock specific engagements to clients, including priority tiers, rationales and behavioural change objectives.
        

          Our engagement model is built specifically to respond to client needs, and is offered as a standalone commercial service.  Ensuring client needs are met is therefore a core business activity.
        

          Our engagement strategy is offered as a standalone commercial service.  Ensuring alignment with client needs is therefore a core business activity rather than an activity requiring a separate process for “alignment”.
        

          Regnan's engagement process involves 
1. Detailed research to identify the issues and companies to be prioritised. 
2. Explicit setting of objectives for change for identified companies. 
3. Contact with the companies, as above. 
4. Follow-up correspondence, where appropriate to secure evidence of changes. 
5. Formal, regular reporting to clients on both activities and on progress against pre-set objectives.
        

          Regnan’s research and its value focus produces in content that is of interest to companies, and our views are often sought by companies, independent of our efforts to contact them.  

This is accompanied the relationships built with companies since the inception of the engagement service in 2002.
        

          Regnan’s engagement service includes developing the rationale and specific change objectives on behalf of participating clients. Formal processes provide for clients to approve these and the implementation of the program proceeds on the agreed basis.
        

          Further information about engagement implementation is considered to be commercial in confidence.  We are happy to discuss this with clients, where desired.
        

          Regnan considers an engagement successful when the agreed change objectives have been met.
        

          Regnan evaluates whether the agreed change objectives have been met.
        

          When prioritised engagement fails to result in the necessary changes, an escalated process is proposed to clients.  This has included: 
• Discussing concerns with other investors, Regnan peers, substantial fund managers and relevant other stakeholders;  
• Providing guidance to clients on voting matters relevant to the engagement priorities;  
• Recommending that clients ensure that the unaddressed risks are adequately priced into investment decisions for the relevant stock/s;  
• Proposing a resolution at the company’s AGM or EGM;  
• Suggesting clients consider excising the stock from their portfolios.