Modern Slavery

Modern slavery is a distressing and pervasive part of global supply chains and one of the most pressing human rights issues that investors can take action on. There are multiple factors that drive modern slavery and allow it to flourish, including economic dislocation, endemic poverty, and ongoing conflict and displacement.

Ministry of Business, Innovation and Employment’s (MBIE) consultation on a legislative response to Modern Slavery and Worker Exploitation, Forced Labour, People Trafficking and Slavery.

Modern slavery and human rights showed increased dominance in environmental, social and governance (ESG) research aimed at informing and driving more responsible investment in Australia over the last year, following the far-reaching local and global impacts of COVID-19. At the 11th Annual ESG Research Australia Awards held today at the RI Australia 2021 conference from the Responsible Investment Association Australasia (RIAA), Citi, Bank of America Merrill Lynch and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from RIAA was also presented to the Australasian Centre for Corporate Responsibility for new ESG research by a non-broker. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research: Nothing to lose but chains – A modern take on slavery for investors, by Zoe Whitton and Edward McKinnon, Citi • Best Piece of Ongoing ESG Research: CEO incentives and analyst expectations, by Sameer Chopra et al., Bank of America Merrill Lynch • Best ESG Broking Firm: Credit Suisse The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is: Best Piece of Investor Relevant ESG Research (non-broking firm): Modern slavery and human rights showed increased dominance in environmental, social and governance (ESG) research aimed at informing and driving more responsible investment in Australia over the last year, following the far-reaching local and global impacts of COVID-19. At the 11th Annual ESG Research Australia Awards held today at the RI Australia 2021 conference from the Responsible Investment Association Australasia (RIAA), Citi, Bank of America Merrill Lynch and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from RIAA was also presented to the Australasian Centre for Corporate Responsibility for new ESG research by a non-broker. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research: Nothing to lose but chains – A modern take on slavery for investors, by Zoe Whitton and Edward McKinnon, Citi • Best Piece of Ongoing ESG Research: CEO incentives and analyst expectations, by Sameer Chopra et al., Bank of America Merrill Lynch • Best ESG Broking Firm: Credit Suisse The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is: Best Piece of Investor Relevant ESG Research (non-broking firm): Labour Hire & Contracting Across the ASX100, by Dr Katie Hepworth, Australasian Centre for Corporate Responsibility

Topical issues of plastics and water scarcity, along with continued strong interest in climate change are among the key issues being researched within the finance industry to inform and drive more responsible investment in Australia. At the 10th Annual ESG Research Australia Awards, Citi, Macquarie and Credit Suisse took out awards for excellence in ESG research by a broker. An additional award from the Responsible Investment Association Australasia (RIAA) was also presented to Ausbil Investment Management and the Australian Council of Superannuation Investors for new ESG research by a non-broker. COVID-19 presents the greatest of challenges to investors, and early signs are that many responsible investment funds and companies are holding up better than their peers. Investors rely on robust and rigorous ESG research and data to help navigate turbulent times, which is why RIAA is pleased to recognise the leaders in this important research. The ESG RA Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research published by broking firms. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research: 2 degree or not 2 degree: The ins and outs of scenario analysis in real life, by Zoe Whitton and Edward McKinnon, Citi • Best Piece of Ongoing ESG Research: Macquarie’s 2019 ESG Ratings Survey, by Anita Stanley and Linda Carlanita, Macquarie • Best ESG Broking Firm: Credit Suisse The winner of RIAA’s ESG Research Award recognising excellence in investor relevant ESG research by a non-broking firm is: • Best Piece of Investor Relevant ESG Research (non-broking firm): Modern Slavery Reporting – guide for investors, by Mans Carlsson-Sweeny, Ausbil Investment Management and Kate Griffiths and Ian McIlwraith, Australian Council of Superannuation Investors. The Guide was an initiative of ACSI and RIAA’s Human Rights Working Group.

Investors have collaborated to produce a best-practice guide to reporting under Australia’s Modern Slavery Act. Developed by the Australian Council of Superannuation Investors (ACSI) and Responsible Investment Association Australasia (RIAA), the best-practice guide builds on the Australian Government’s guidance. The new Act has requirements for organisations in reporting the risks of modern slavery in their operations and supply chains. The ACSI/RIAA guide provides information for investors on how to incorporate investments into their modern slavery reporting and meaningfully address modern slavery risks. ACSI CEO Louise Davidson said the new guide was developed to help investors report under the Act. “Modern Slavery is likely to exist in the operations or supply chains of most businesses. Beyond the devastating human impact, poor management of human rights impacts upon the commercial success, stability and longevity of investments,” she said. “ACSI and RIAA have collaborated to ensure investors have a clear path on how to tackle these issues and promote sustainability in their operations and supply chains. We encourage investors and companies to report within the spirit of the new law and work to develop their capacity to identify, manage, address and remediate modern slavery risks and impacts.” “It will take time and global effort to address modern slavery. Effective reporting will help to drive global awareness and ultimately improvement in practices. Investors are well placed to lead the change.” She said. RIAA CEO Simon O’Connor said the guide has been designed to help investors lead with action in respecting human rights and tackling modern slavery.