ESG integration for investment performance
Testing of regnan esg materiality research
Regnan’s ‘ValDA’ ratings were established to support ESG integration for investment managers and portfolio risk monitoring for both managers and asset owners. The ratings distil Regnan’s analysis of companies’ ESG exposures and responses into single scores for specific themes – such as ethics and conduct, workplace health and safety, climate change and board management – and into top level E, S and G scores, expressing Regnan’s judgement across those categories.
New analysis and back-testing of years of Regnan’s ESG ratings, conducted by Dr Darren Lee, shows that ASX200 stocks which Regnan gave high ESG scores significantly outperformed the ASX200 average. Those that were given low ESG scores underperformed the average. Such testing adds to the growing evidence that ESG information can add to investment performance, when it is well targeted to material issues.