Engagement & Advocacy Summary 2013-14

July 2014

Engagement at a glance

Regnan undertook 72 engagements with 47 stocks in 2013-14, reaching around half of the current S&P/ASX200 (49% by market weight).

Active pursuit of the engagement strategy agreed with clients is evident with 71% of activity relating to an explicit engagement plan and 76% involving face to face meetings.

Four key topics continue to be the most discussed:

  • Executive remuneration - alignment with strategy and circumstance and restraint in overall quantum.
  • Effective disclosure on ESG issues and uptake of the integrated reporting framework.
  • Management of social issues that are central to value, including community relations and social licence risks.
  • Climate change including the impact of a changing climate on business operations.

See below for more on topics.

Advocacy at a glance

Formal submissions to government and other bodies are an important avenue for influence: Regnan made 8 submissions during the year. 

Regnan held 3 director-investor dialogue events and presented at 8 events hosted by others in 2013-14. 

Selective media appearances reinforce key messages. The word cloud below captures the flavour of Regnan’s contribution to the public conversation.

Details of media & subs below.

 

 

Engagement details

Total activity levels remain high (chart right).

The spike in activity in 2011-12 related to implementation of the ‘two-strike rule’- (shareholder vote on pay plans) which drove large volumes of inbound engagement requests.

 

Social topics were most frequently addressed as in the prior year (chart left).

48 out of 72 engagements addressed social topics, either alone or alongside corporate governance and environmental issues.  

Unconventional gas (including coal seam gas) considering community and social licence risks as well as environmental impact continues to be an engagement priority. 

 

 

Advocacy details

Submissions:

  1. WA Senate Standing Committee on Environment and Public Affairs Inquiry into the Implications for Western Australia of Hydraulic Fracturing for Unconventional Gas submission link
  2. Integrated Reporting Consultation Draft: submission link 
  3. Submission on International Corporate Governance Network (ICGN) Position on Board Gender Diversity
  4. ASX Corporate Governance Council – Review of Principles and Recommendations (‘the Principles’) submission link
  5. Senate Standing Committee on Environment - Clean Energy Legislation (Carbon Tax Repeal) Bills
  6. Climate Change Authority Targets and Progress Review Draft Report submission link
  7. Financial System Inquiry http://fsi.gov.au/consultation/submissions20140520/ 
  8. IGCN - Global Corporate Governance Principles - Submission on Consultation Draft

Media:

  1. Interview on business implications of ICAC inquiry, ABC News, 1 August 2013
  2. ‘Shareholders ask do top execs deliver value for money’, Lateline Business (ABC1), 2 Oct 2013
  3. 'It's not what you know: What workplace meritocracy really means', BRW, 4 Nov 2013
  4. 'David Jones investigated after directors bought shares days before release of sales figures' ABC Newswires, 11 Nov 2013
  5. ‘Integrated Reporting Framework Launched’, The Sustainability Report (online), 13 Dec 2013
  6. ‘The boardroom blitz, David Jones is rocked by trouble in the director department’, The Business (ABC TV: News 24), 11 February 2014
  7. ‘New report challenges Whitehaven Coal approval’, RN Breakfast (ABC Radio), 14 February 2014
  8. ‘Gender neutral in the worst sense’, Australian Financial Review, 26 February 2014
  9. ‘The importance of independence’, Company Director (magazine), March 2014
  10.  'ASX includes ESG language in corporate governance guidance', The Sustainability Report (online), 28 March 2014
  11. ‘Murray must target “intermediation”’, investordaily.com.au, 14 April 2014
  12. ‘Should directors think like owners’, Company Director Magazine, 1 May 2014

 

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