Eight large institutional investors have combined with Monash
University in Melbourne to set up a specialist service provider in
governance research and engagement.
The founding companies – Aria, BT, Hermes, Hesta, LGSS, Vanguard, VFMC
and VicSuper – which handle investments worth a total of A$350billion
($300bn, £150bn) – have called the organization Regnan, a title based
on a Latin word meaning to move in a straight line or to rule.
Erik Mather, Regnan’s managing director, said: ‘The creation of Regnan
provides the opportunity for some of the world’s leading institutional
investors to work together to improve the environmental, social and
governance (ESG) performance of companies and ultimately the
performance of their own investments.’
Regnan’s research will enable institutional investors to consider all
aspects of a company’s ESG activities. Mather said: ‘We expect that
fund managers and other investors will apply the data to their analysis
of companies, alongside traditional valuation measures.’
Companies are expected to benefit as collaboration will lead to better
dialogue, and shareholders are likely to have greater influence on
bringing about improvements in governance.
The ESG research will be done by Monash Sustainability Enterprises,
part of Monash, which is Australia’s largest university. MSE has been
carrying out research into governance and engagement for more than five
years.
Regnan will initially be based in Sydney and Melbourne.
