November 24, 2020 / Engagement and Advocacy
EACH year responsible investment adviser Regnan engages with a range of ASX-listed companies seeking better management of Environmental, Social and Governance (ESG) issues.
Here Regnan’s Head of Engagement Alison Ewings (pictured) outlines our progress
REGNAN’s corporate engagement work encourages market disclosures that support better decision-making, improved responses to climate-related risks, greater oversight of conduct and progress in corporate governance issues.
In 2020 the work could not be more relevant after a horror Australian bushfire season, closely followed by the COVID-19 pandemic and global debate on inequality highlighted by the Black Lives Matter movement.
Regnan — a wholly owned subsidary of Pendal — has just released its annual Engagement Impact Report covering the outcomes of its meetings with 41 companies over the past year.
The report shines a light on the importance of three key issues: capacity, resilience and interdependency.
“ESG engagement has often sought assurances regarding capacity and resilience — invisible assets that can receive scant attention when things are going well,” the report says.
“This year has provided an opportunity to test and underscore the importance of these, from straightforward aspects such as director over-commitment, to more complex questions of maintaining an appropriate balance between efficiency and resilience.
“But the pandemic has also revealed the extent of interdependencies within our system, many of which lie beyond the boundaries of the portfolios in which we invest.”
The good news is, Australian companes are listening and acting.
More than 95% of Regnan’s active engagements have demonstrated progress, including 79% in the past 12 months.
As well as reporting on the impact of its ESG engagement with companies, Regnan also explores the implications of current world events for active asset owners.
Engagement on complex social issues has increased relative to previous years, the report notes.
Political lobbying, supply chain and issues of cultural heritage and stakeholder relations all feature more prominently, attracting media and community attention.
On the topic of modern slavery legislation Regnan encourages a “beyond compliance” approach focused on making a meaningful difference.
Regnan is a responsible investment leader with a long and proud heritage providing advice and insights on important environmental, social and governance issues. For more than 20 years Regnan has pioneered analysis that has changed the way investors and businesses think about value creation and their wider responsibilities to society.
Building on that expertise, in 2019 Regnan expanded its capabilities into global responsible investment funds management. while continuing to provide engagement, advisory and research services.
Regnan operates as a standalone responsible investment business within Pendal Group.
This document has been prepared by Pendal Institutional Limited (Pendal) ABN 17 126 390 627, AFSL No 316455 and the information contained within is current as at November 25, 2020. This document is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation. The information in this document may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this document is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal Group accepts any responsibility or liability for the accuracy or completeness of this information. Pendal is the responsible entity and issuer of units in the Regnan Credit Impact Trust ARSN: 638 304 220 (the Fund). An Information Memorandum is available for the Fund (IM) and can be obtained by calling 1800 813 886 or visiting www.pendalgroup.com. You should obtain and consider the IM before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Past performance is not a reliable indicator of future performance.