ESG vs spin
Even for people familiar with the industry, ESG can mean different things – and it is often pursued for different reasons.
Regnan’s owners established us for a very clear purpose: to help future-proof portfolios by addressing long-term and systemic risks that markets tend to misprice.
It’s not catchy, but it’s a necessary clarification, and the reason for our uniquely analytic approach. Unlike others in our market, we start with a detailed understanding of each company’s business mix, revenue drivers, franchise and growth strategies, to identify the interplay of these with ESG risks and opportunities.
We take a similarly tailored approach to assessing the company's response, unconvinced that investors are served by an assumption that there is one 'right' way to remunerate executives; that employee turnover is always a bad sign; or that every company needs a sustainability report.
Ultimately, it means we focus on those things that matter to a portfolio’s performance, as quantitative analysis of our research has confirmed.
We believe ESG analysis should withstand rigorous questioning about its investment implications – and we invite investors to test ours against that of our peers.