ISS ESG's Enhanced Modern Slavery Solution for Investors
Investors can now gain deeper insights into their portfolios' exposure to modern slavery risks with the launch of ISS ESG's improved Modern Slavery solution.
This comprehensive offering provides a scorecard and portfolio report, backed by data from multiple sources including ISS ESG's own industry-leading ESG Corporate Rating, Norm-Based Research, and ESG Country Rating. Also, the solution leverages data from external sources like the US Department of Labor.
Developed by ISS ESG's modern slavery and human rights experts, the solution assesses companies based on 25 key factors, both quantitative and qualitative. As of June 2024, the Modern Slavery solution offers risk assessments for roughly 60,000 issuers globally, with a growing universe to meet client needs. With this enhanced solution, investors can upload their portfolios and receive a report detailing their exposure to modern slavery risks, as well as how their holdings are managing these issues.
This launch comes at a crucial time as regulations around modern slavery disclosure are tightening in countries like Australia, the UK, Canada, France, and others.
Till Jung, Head of ISS ESG said: “The new launch is timely in light of improving corporate modern-slavery and supply-chain related disclosure in markets such as Australia, the United Kingdom, Canada, France, the Netherlands, Germany, and Norway, driven by significant regulatory developments in recent years. The modern slavery solution’s new reporting functionality allows clients to upload their portfolio and download a report which details their risk exposure and also demonstrates how their holdings are managing modern slavery risks.”
The Modern Slavery solution empowers investors in several ways:
Risk Management: Identify portfolio companies exposed to modern slavery risks.
Benchmarking: Compare portfolio holdings to industry peers.
Reporting: Facilitate reporting on modern slavery risks, disclosure, performance, and controversies.
Due Diligence: Integrate detailed data into internal assessments.
Engagement: Identify high-risk companies for potential engagement on improving practices.
By providing a clear picture of modern slavery risks across geographic regions, industries, and product lines, the Modern Slavery solution equips investors to make informed decisions and promote ethical practices throughout their portfolios.
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Source: ISS ESG
