Combating modern slavery difficult but not impossible: RIAA

While it might be challenging to construct a truly modern-slavery-risk free investment portfolio, it is not impossible, a sustainability expert says, who will help wealth managers combat such risks at next week's Responsible Investment Association Australasia (RIAA) Conference.

According to estimates from the International Labour Organisation, some 50 million people globally face modern slavery conditions. For investors, it means being cognisant of modern slavery hiding deep inside global supply chains.

"Investors can play a role in combatting modern slavery through many ways; shareholder resolutions, divestments, exclusions as well as company engagements and policy advocacy," Ausbil Investment Management head of ESG and co-portfolio manager Mans Carlsson said.

Carlsson will co-present the Human rights and modern-day slavery: What advisers need to know workshop at the event, which will be held at the Melbourne Convention & Exhibition Centre on May 27-28.

He is joined by Ethical Investment Advisers financial adviser Karen Macleod, U Ethical Investors stewardship manager Rachel Alembakis and RIAA acting manager for membership and engagement Ethan Kusch.

At the workshop, Carlsson said delegates can expect to improve their understanding of a broad range of aspects in relation to modern slavery. This includes regulatory changes and how these might impact investors, practical implications from a portfolio construction perspective and the role investors can play through constructive engagement and policy advocacy.

Additionally, delegates will be equipped with the questions they should be asking investment managers and companies.

"The financial materiality of modern slavery relates to a wide range of unpredictable reputational risks, earnings sustainability risks and legal risks, particularly due to increased regulatory change," said Carlsson.

"While mandatory climate reporting is pre-occupying corporates, the government is undertaking consultation in relation to the Modern Slavery Act, with potential changes to the Act in the future."

A new report from the Migrant Justice Institute calls out the superannuation sector as one hotbed that helps obfuscate the underpayment of migrant workers and aids their systematic exploitation to sustain substantial parts of Australia's economy.

The study examined nearly 10,000 migrants on temporary visas. They include international students, backpackers, graduate visa holders and employer-sponsored workers.

As part of this, international students alone are estimated to be short-changed by about $61 million every week or $3.2 billion per year.

The Migrant Justice Institute overwhelmingly found employers that do not issue or provide misleading payslips, deny superannuation payments and pay in cash all aid in practices that are indicators of "modern slavery."

Financial Standard is the official media partner of the 2026 RIAA Conference.