Regnan's position papers and other ESG-related guidance.
ESG INTEGRATION FOR INVESTMENT PERFORMANCE: TESTING OF REGNAN ESG MATERIALITY RESEARCH
Regnan partnered with Dr Darren Lee to understand how our ESG scores have been reflected in the long term financial performance of the companies assessed. Testing of our overall scores on E, S and G against share price performance yielded notable results. The ASX200 stocks which Regnan gave high ESG scores significantly outperformed the ASX200 average, while those that were given low ESG scores underperformed.
The intersection of conduct culture and company value
Regnan partnered with Dr Darren Lee to understand how our ESG scores have been reflected in the long term financial performance of the companies assessed. Testing of our scores on ethical conduct against share price performance yielded notable results. Those companies deemed to manage conduct culture very well significantly outperformed those companies with low scores.
strategic human capital
Strategic Human Capital: Closing a material gap in corporate disclosure
Regnan considers the ways in which knowledge, skills and abilities are organised to achieve corporate objectives – or, strategic human capital management – to be an increasing determinant of share value. As such, strategic human capital management is a key underpinning of strategy execution – enhanced disclosure of which can shed light on these risks and opportunities, as well as a company’s future prospects.
Regnan's aim with this paper is to highlight the gap in information to investors, and to provide companies with practical guidance to better communicate with their current and future investors those issues of strategic importance that relate to human capital management.
Position Paper: Board Diversity
The boards of Australian companies are predominantly made up of directors who share the same gender, are of similar age, and cultural and professional backgrounds. Despite increasing evidence of a correlation between forms of diversity (including gender) and company performance, Australian companies have so far been slow to increase the diversity of their boards and executive teams. This paper contends that this slowness to act means companies are failing to fully benefit from their existing and potential human capital and consequently constraining financial performance, which should be of concern for all investors.
unconventional oil and gas
Unconventional oil and gas best practice ESG risk management principles and recommendations 1.0
Regnan recognises the significant investment potential for unconventional oil and gas (UOG), but notes that the rapid growth of the UOG industry has elevated environmental, social and corporate governance (ESG) risks for investors, given unresolved technical, regulatory and stakeholder issues. This guide (‘our principles and recommendations’) sets out best practice corporate ESG risk management for UOG.
Elements of a comprehensive anti-bribery culture and control program
Regnan has developed a document outlining the key elements required for a company to build a comprehensive anti-bribery culture and control program.
Position Paper: Remunerating Executives for Shareholder Value
Restraint, simplicity and transparency are key to ensuring the acceptability of remuneration arrangements to long term investors. We encourage companies to discuss remuneration matters of interest or concern with investors well before a remuneration plan is finalised.
Regnan believes informed and empowered board members are best placed to determine appropriate executive remuneration arrangements. We therefore provide no prescription, but provide context and general guidelines on what we consider necessary inputs for determining such arrangements.
Research Report: Independent directors and board diversity broaden skills and enhance governance
This report examines the evidence regarding independent directors and diversity of board membership and their relationship to company performance. The evidence suggests that, at worst, neither independence nor diversity has an adverse impact on performance; at best, they are likely to bring substantial benefits. (The evidence on diversity appears stronger in this regard than that on independence.)
independence and diversity
Principles for ESG Reporting
Regnan provides guidance on ESG reporting.
Position Paper: Corporate Governance Practices in Externally Managed Trusts
Our objective here is to offer guidance on how to address the specific corporate governance challenges faced by externally managed trusts. For the purposes of illustration, we include examples from the market of structures that apply (or approximate) the relevant principles within the externally managed trust structure.