Investment groups form alliance against modern slavery

A joint letter combining over 100 signatories of institutional investors, businesses, unions and related organisation was sent to the government advocating for reform to address underlying risks in modern slavery.

The letter was sent to the Attorney-General and brings together investors like Australian Ethical, Colonial First State, Future Group, IFM Investors, and more to call on the government to ensure the reform is both "meaningful and pragmatic".

The group is advising the government to align with key international standards, such as the United Nations' guiding principles on business and human rights and the Organisation for Economic Co-operation and Development's guidelines for multinational enterprises on responsible business conduct.

They are also requesting to prioritise the mandate to undertake risk-based due diligence, which would "level the playing field" and promote an effective, proportionate, and outcome-focused approach to addressing modern slavery - reflecting what many Australian businesses are already doing.

"Many Australian businesses and investors have already taken action to identify and address modern slavery in supply chains to support their reporting under the Act. However, uptake remains uneven - reforming the Act could address this," the letter states.

"With an estimated 50 million people in modern slavery globally, action is urgent. This letter is calling on the government to prioritise aligning the Act with international principles and the introduction of a risk based due diligence approach for modern slavery for companies reporting under the Act."

Being part of the initiative, Future Group head of sustainable investments Jackie Radisich said the better focus on refining the Act will provide better clarity for investors.

"This kind of collective advocacy is one of the key levers we use to call for stronger legislative conditions that drive greater action on modern slavery in global supply chains and improve investors' ability to assess and act on exposure in their portfolios," Radisich said.