Framework & Approach
Photo Credit: 1001nights via Getty Images.IAST APAC work streams
Investors joining IAST APAC can contribute to two work streams. The first work stream is focused on contributing advocacy and sharing information for improved modern slavery risk management and modern slavery incident response. The second work stream focuses on engagement with companies in the Asia-Pacific region.
Investor Advocacy
The work stream initially focused on publishing and distributing an investor statement that set out investor expectations regarding company action to assess and address modern slavery going beyond the requirements of the Australian Modern Slavery Act. The investor statement was published in September 2020. It was sent to ASX100 companies in November 2020 and the remainder of the ASX200 in June 2021.
You can read the investor statement here: Investor statement
“Ausbil has a history with engagements on modern slavery as well as other human rights issues and as a member of the steering committee of IAST APAC, we believe collaborative engagement can be an effective way to address this systemic risk. As the investor statement outlines, modern slavery is more than an ‘ethical issue’; we believe any business model or supply chain that relies on underpaid workers, weak regulation or even illegal activities like modern slavery cannot produce sustainable earnings.”
Mans Carlsson
Head of ESG Research, Ausbil Investment Management Limited
This work stream is now exploring supporting advocacy to strengthen regulation and share information for improved modern slavery risk management and incident response. This includes engaging with a broader range of stakeholders including research providers and standard setters on core modern slavery metrics and how data and disclosure can improve our understanding of modern slavery risks within portfolios. As knowledge partners, Walk Free and FAST assist with knowledge events to inform IAST APAC investors of regulatory developments and supply chain risks.
You can read IAST APAC’s submission to the Australian Modern Slavery Act here.
You can read IAST APAC’s submission to the ISSB here.
You can read IAST APAC’s core modern slavery metrics here.
You can read the investor letter to the NZ government on modern slavery laws here.
You can read IAST APAC’s letter to the Australian government on National Victims Compensation Scheme here.
Collaborative engagement
This work stream involves the collaborative investor-company engagement work stream. The focus is collaborative engagement by IAST APAC investors with specific focus companies in the Asia-Pacific region. Collaborative engagement aims to maximise leverage, generate efficiencies and build knowledge. Investors can join this work stream as either a lead or support investor, within small group collaborations that engage the different focus companies selected from four initial sectors:
- Consumer discretionary
- Consumer staples
- Technology
- Healthcare.
As knowledge partners, Walk Free and FAST assist with knowledge events to inform IAST APAC investors of supply chain tools and risks.
“Modern slavery is a complex issue that requires a coordinated approach at many levels. Ultimately, there is one KPI that matters: have you found modern slavery in your operations or supply chain? By finding, fixing and preventing it together, we are much more likely to achieve positive change.”
Kate Turner
Global Head of Responsible Investment, First Sentier Investors
IAST APAC focuses on encouraging companies to address a simple question
What slavery risks have you addressed?
To answer that question, companies are encouraged to:
Find It
by proactively searching their supply chain for modern slavery risks
Fix It
by addressing those risks and remedying harms to those affected
Prevent It
by working to ensure the situation does not continue
“Beyond its devastating human impact, modern slavery threatens business sustainability, supply chains and shareholder value. IAST APAC is a great opportunity for investors to work together to address systemic issues and manage modern slavery risk.”
Louise Davidson
CEO, Australian Council of Superannuation Investors (ACSI)
More information
Asset owners and asset managers in the Asia-Pacific region interested in joining IAST APAC should contact the Secretariat.