A former governance business of BT Financial Group (BT) has spun off to create a new company that will focus on environmental, social and governance (ESG) issues.
Regnan was formerly part of BT's Governance Advisory Services (GAS). The company now operates independently from BT although BT has a stake in the business.
"We support this transition from BT GAS to Regnan and will retain a shareholding and active involvement in the new enterprise," BT Financial Group general manager, investment management Dirk Morris said.
Other shareholders in the business include superannuation funds HESTA, Vic Super, ARIA, Local Government Superannuation Scheme (LGSS) and investment managers, Vanguard and the Victorian Funds Management Corporation (VFMC). UK fund manager Hermes is also an investor in the business.
Collectively the institutional investors invest $50 billion in Australian listed companies.
"As the major investor of the state's assets, it's highly appropriate that VFMC, as a responsible member of the investment community, has invested in Regnan," VFMC chief executive Syd Bone said.
"HESTA is pleased to be joining the launch of Regnan, particularly given the scale of collaborative positive engagement this will provide," HESTA executive manager, investments and governance Rob Fowler said.
"Regnan's direct engagement with listed companies will help companies focus on the material ESG issues and is consistent with HESTA's aspirations as a signatory to the principles for responsible investing."
Regnan managing director Erik Mather said the diversity in the ownership of the new business will mean greater clout in corporate governance. "The size of the business allows us to have more influence on ensuring companies meet their environmental, social and governance issues," Mather said.
Monash University will contribute additional research services to Regnan.
