With over 50 million people estimated to be living in modern slavery conditions and rising economic and social instability, human rights risks are becoming a critical financial concern for companies and investors.  

In response, the Responsible Investment Association Australasia (RIAA) has today launched the third edition of its landmark publication, ‘Investor Toolkit: Human Rights in Global Value Chains’.

This edition builds on the success of the 2018 and 2021 versions, offering a refreshed and highly practical and action-oriented guide for asset owners and managers. It helps investors to engage constructively with companies on managing human rights risks across operations, supply chains and broader value chains.

Human rights risks are complex and widespread – often occurring deep within value chains and beyond the companies’ line of sight. This new toolkit bridges the gap between compliance and real-world change, equipping investors with guidance to support constructive engagement based on good practice and business rationale.

The financial implications of neglecting human rights are significant. These include brand damage and reputational risk which can lead to loss of sales. Market value is increasingly made up of intangible drivers, including brand equity and customer / supplier relationships, meaning human rights issues can be material and therefore impact valuation multiples.  

“Addressing these complex issues requires a concerted and comprehensive multi-stakeholder approach that tackles systemic vulnerabilities, centres affected communities and addresses the economic pressures that lead to exploitation,” said Australian Anti-Slavery Commissioner Chris Evans, who provides an introduction to the toolkit. “As investors, businesses, governments and consumers, we all share responsibility for challenging harmful practices and creating conditions where rights are respected throughout global commerce.”

The toolkit provides:

• clear guidance on identifying potential risks in portfolio companies;  
• questions for engaging with companies to address material human rights issues; and
• an update on the evolving nature of human rights due diligence, with a broadened lens that includes climate impacts, circular economy risks and conflict-affected regions.

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“This third edition is not just a refresh – it's a new chapter strengthening the investor rationale and outlining leading practice,” said RIAA Co-CEO Estelle Parker. “Respect for Human Rights is not just a moral imperative – it's a financial one. Our aim is to help investors move beyond disclosures towards accountability and more resilient, sustainable portfolios. The updated toolkit recognises the pivotal role investors can play in shaping more ethical and resilient value chains. We are proud of the collaboration that shaped this work. Deepest thanks to the contributors across RIAA's Human Rights Working Group whose insights have helped bring this toolkit to life! Together, we are equipping the investment community with the tools needed to shift the dial on human rights.”

“Human rights issues, which are often both complex and systemic by nature, can represent a number of risks to investors, including earnings sustainability risks,” said Måns Carlsson OAM, Head of ESG and Co-Portfolio Manager, Ausbil Active Sustainable Equity Fund, Co-Lead of the toolkit and Chair, RIAA's Human Rights Working Group. “Due to their prevalence, these risks can be difficult to diversify away from an investment portfolio. However, investors can play a key role through constructive engagement, in mitigating these risks by encouraging companies to adopt good human rights practices. This toolkit aims to equip investors with ideas for constructive and practical engagements with investee companies.”

“RIAA’s Human Rights in Global Value Chains Toolkit, launched today, provides investors with practical resources and recent examples that can help make their company engagement more effective, whilst reinforcing the investment rationale for seeking better human rights risks management”, shared Timothy Stamp, Co-Lead of the toolkit. Tim is a Principal within Sustainable Investment at Mercer Australia.  

The investor toolkit officially launches at RIAA’s Australia Conference 2025, where an expert panel including Måns Carlsson and Chris Evans will discuss how institutional and impact investors can take a more active role in addressing human rights risks across global value chains.

For further information, please contact Ada Tso, Marketing & Communications Manager, RIAA, ada@responsibleinvestment.org, +61481308718

About RIAA (https://responsibleinvestment.org)  

With 500+ members representing A$76 trillion / NZ$83 trillion in assets under management, RIAA is the largest and most active network of people and organisations engaged in responsible, ethical and impact investing across Australia and New Zealand. Our membership includes super funds, KiwiSaver providers, fund managers, banks, consultants, researchers, brokers, impact investors, property managers, trusts, foundations, faith-based groups, financial advisers and individuals.

The Human Rights Working Group is a way for RIAA members to come together in the interests of building stronger stewardship capabilities through more deeply understanding human rights, being able to identify and comment on due diligence processes and understand investor and company roles in remedying human rights abuses and violations.

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