The Bridging ESG Silos: The Intersection of Climate Change and Modern Slavery report from Walk Free and AllianceBernstein is designed to help investors understand and act on the links between material risks related to climate change, the transition to renewable energy and modern slavery.
Investors are increasingly exposed to both the physical risks of climate change, from weather extremes and intensifying natural disasters, and transition risks as economies and societies move towards decarbonisation. There are clear links between climate change, the energy transition and increased vulnerability to human rights abuses such as human trafficking and modern slavery.
Today, responsible investors integrate material environmental, social and governance (ESG) factors into their investment decisions. But ESG integration often remains siloed and neglects important connections between issues. These connections are significant between environmental and social factors, such as climate change and modern slavery.
The report uses seven case studies to demonstrate how investors can be exposed to modern slavery risks from climate change and the energy transition. It also provides takeaways for investors to help them address actual or potential impacts and offers new tools to manage and disclose climate-related modern slavery risks: a climate-reporting supplement and investor stewardship guidance.
Super Typhoon Haiyan displaced 4.4 million people when it struck the Philippines in 2013. The immense destruction of homes and livelihoods resulted in large-scale migration to Manila. Human trafficking then surged as human traffickers preyed on displaced men, women and children.
Cobalt is a key mineral component in lithium-ion batteries used in electric vehicles, electronic devices, jet engines and renewable energy storage. A significant portion of the world’s land-based cobalt reserves are found in the Democratic Republic of Congo (DRC), where cobalt mining is tied to serious human rights allegations — it is estimated that at least 35,000 children work in the industry.