Society

This meeting will start with a discussion on mandating due diligence in the EU, key takeaways on the Corporate Sustainability Due Diligence Directive (CSDDD) and insights on mandatory Human Rights and Environmental Due Diligence (mHREDD). To help us explore this topic, we are excited to welcome Rebecca DeWinter-Schmitt, Associate Director of the Investor Alliance for Human Rights who focuses on connecting institutional investors and their allies with the tools and strategies to promote human rights and responsible business conduct. This will then be followed by a series of industry updates and insights from the group’s subgroups including an update on the AI (Artificial Intelligence) and Human Rights Investor Toolkit and the Conflict subgroup. This will also provide the opportunity for discussion and input on what the working group should be focusing on for the next workplan. We will also hear a brief update about RIAA’s Policy work.

There is little evidence that Australia’s Modern Slavery Act 2018 (Cth) has contributed to reducing the prevalence of modern slavery, which the UN estimates affects 50 million people globally. With the proliferation of regulation internationally, it’s time for Australia to ask hard questions about the success of its modern slavery reporting regime.

The Responsible Investment Association of Australasia (RIAA) today launched a toolkit to help investors address the rapidly evolving human rights risks presented by Artificial Intelligence (AI). The Artificial Intelligence and Human Rights Investor Toolkit was created by RIAA’s Human Rights Working Group, drawn from RIAA’s membership base. Estelle Parker, Co-CEO at RIAA, said, “The potential benefits of AI are immense, but investors are increasingly aware of the risks posed by AI, especially when it is inadequately designed, inappropriately used or maliciously deployed. Not only does AI pose risks to individuals and their human rights, but there are also ethical and financial risks to companies and investors as this technology evolves.” The investor toolkit is comprehensive and is appropriate for people who may not have had much familiarity with the issue to date. It seeks to enhance the investment community’s understanding of the financial and human rights risks associated with AI. It outlines the issues, provides case studies, outlines methodologies for understanding risks, and details strategies for investor engagement.

Investors should care about this topic, not just because of the reporting requirements, but because of the potential investment impacts, including brand risk, the implied social licenses under which exist, earnings sustainability risks and many other operational factors… It is time to step away from a ‘compliance’ mindset around modern slavery and tackle the issues with decisive action.

Building on the last working group meeting of 2023, working group members had the opportunity to hear from speakers to understand more about regulatory changes in relation to labour rights and the workplace. In December 2022, a new positive duty to eradicate instances of sex discrimination and harassment within the workplace was introduced through the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Act 2022 (Cth) (the Act), an amendment to the Sex Discrimination Act 1984. What steps can investors take to respond to these changes? The group was lucky enough to hear from the Australian Human Rights Commission, Samantha Ramsay (Senior Lawyer, Positive Duty, Compliance & Enforcement Team) and Dr Meredith Nash (Director – Sexual Harassment & Gendered Violence and is KPMG’s national lead for Respect@Work) about these changes. Please note this session was not recorded as mentioned in pre-event communications.

Have you ever wondered if your organisation’s commitment to diversity goes beyond gender? Let’s explore the compelling case for embracing inclusion across diverse groups, including individuals with disabilities, and how it can revolutionise Diversity, Equity, and Inclusion (DEI) efforts.

Our fourth meeting for 2023 included a special presentation by Heidi Roberts, Partner, Responsible Business and ESG Practice at Corrs Chambers Westgarth and Sarah Clarke, Partner, Employment and Labour at Corrs Chambers Westgarth. Heidi and Sarah discussed the key proposed changes under the Fair Work Legislation Amendment Bill, which was introduced to Parliament in September 2023. The meeting also included a presentation from Kirsty Simmonds, ESG Practice Principal and Practice Co-Founder at The Growth Activists. Kirsty discussed the B Corp framework, the growth of certification and what it means for investors.

Our third meeting for 2023 included a special presentation by Nicole Breeze, Chief Advocate for Children and Director of Programs and Advocacy in Australia at UNICEF, and Robyn Parkin, Head of Sustainability at Ethical Partners Funds Management, who presented their research into the rights of a child, which focuses on the safeguarding of children within Australian listed companies. Integrating Child Rights across the ASX provides best practice guidance on how companies can better consider children’s rights, and seeks to deepen the conversation between investors and listed companies about their impact on children and their rights, and how they can be better understood, assessed, disclosed and protected.

Modern slavery has become a key issue for the responsible investment community in recent times. At the RI Australia 2023 conference, Tomoya Obokata, the United Nations’ Special Rapporteur on Contemporary Forms of Slavery presented on the global state of modern slavery. During his keynote speech and interview with RIAA Chair, Ross Piper (CEO of Australian Ethical Investments), Tomoya reflected on current trends, provided an update on efforts to combat contemporary forms of slavery, explained international laws and norms, and explored what investors can do to reduce instances of modern slavery in their portfolios and supply chains.

Our second meeting for 2023 included a special presentation by Matthew Coghlan, Financial Sector Engagement Manager at Walk Free, who discussed the recently published Global Slavery Index 2023.