ESG Research Update

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Australia’s 100 largest companies ranked in modern slavery study

The Monash Centre for Financial Studies has ranked the modern slavery statements of Australia’s 100 largest companies listed on the Australian Stock Exchange (ASX). In the report, Identifying modern slavery: An analysis of Australia’s largest companies, Woolworths, Fortescue Metals, Wesfarmers, Westpac and Ansell all came out on top, with IDP Education, Fisher and Paykel Healthcare, Cleanaway, Resmed and Nine Entertainment performing poorly.

The findings were put together using S&P/ASX100 company statements for the last financial year ending June 2021, with a huge variation in the disclosure of information on modern slavery offered by each company. This was the first time ASX 100 companies have been asked to report modern slavery risk in their supply chains. The most common risks assessed and remarked upon were forced labour, child labour and debt bondage.

Australian companies earning annual consolidated revenue of over AU$100 million are required to report on the risks of modern slavery in their supply chains and actions as of 2019 since the Commonwealth Modern Slavery Act was passed in 2018.

The research was conducted by a team at the Monash Centre for Financial Studies within the Monash Business School, which included Dr Nga Pham, Dr Bei Cui and Dr Ummul Ruthbah.

Study published identifying emerging geopolitical risks

Lloyd’s published a report identifying emerging geopolitical risks, offering companies advice on how to mitigate such risks. The report, Shifting powers: meeting the challenges of the geopolitical landscape, was developed in partnership with the University of Cambridge’s Centre for Risk Studies, and discusses the transformation of the geopolitical risk landscape across the past decade. The report identifies 10 of the most pressing risks companies face today, from cyber attacks to social unrest.

The report explains how geopolitical power centres have shifted since the global financial crisis, being driven by five macro-trends from rising populism to the decline of the United States as a conflict mediator. The report offers steps that businesses can consider, working on supply chain exposure and precautions to protect intellectual property and trade secrets against cyber attack.

Research finds major shift in ESG integration, new tech and use of alternatives

The results of a survey have been published by bfinance, an independent investment consultant, with findings showing a significant change in wealth managers’ investment capabilities and practices. Innovations are commonplace in the bid to maintain market share and profitability in the new era of tech-based competition and fee drops.

The researchers gathered data from 120 wealth managers in 29 countries to produce the report, ESG Asset Owner Survey: How Are Investors Changing?

Key findings include:

  • Eighty-seven per cent of respondents have added new technology for clients over the past three years

  • Over 30 per cent say they are actively considering impact investing

  • Almost 70 per cent have added new asset classes for wealth clients in the past three years

  • Just 10 per cent of respondents don’t have any intentions to enter the ESG and impact investing space