Rigorous, relevant analysis. No checklists.

Regnan’s team of specialists have deep understanding of the stocks they cover and hard-won expertise on how ESG issues play out in the Australian market.

Rigorous

In the ESG market, Regnan's differentiator is the depth of the research it undertakes on a company-by-company basis; with our main efforts focused on analysis and peer review rather than the compilation of data.  This means our research reflects the reality that different companies - even in the same sector - can experience different ESG issues and can successfully respond to even the same ESG issues in different ways.

We don't take shortcuts such as using sector membership as a proxy for exposure to ESG issues, recognising that what drives value often differs, even across the same industry.

Relevant

Regnan believes that ESG risks and opportunities are not yet efficiently priced by the market.  However, we don't think all ESG research is equally capable of bridging that gap.  ESG research that emphasises a normative approach often sheds little light on how these attributes might be usefully incorporated into investment decisions - and can be counterproductive for value if it causes corporate resources to be shifted to things that are not material.

We don't, for instance, issue governance guidelines to companies, preferring that they develop native responses to managing agency risk.  We don't take sector membership as a proxy for exposure to ESG issues, recognising that what drives value often differs, even across the same industry.  The water use of a software company does not make claims on our analysts' time, nor do we compare banks' lost time injury frequency rates.

We fully recognise that the market will not always reward best practice.  Our research works best for those who use it for investment insight, not bias confirmation.

 

For more information on the services we offer please contact us.

Our research platform

In 2014, Regnan launched a client platform to provide clients with a live and interactive system for accessing and utilising research data.

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