AB: How Investors Can Detect and Disrupt Modern Slavery - Seite 2

We may have a slightly different view there. One, if you look, for example, at event-driven ESG risk related to modern slavery, there are plenty of examples whereby you can see that it has had an impact on the company. For example, there has been a financial institution which failed to report a large number of transactions related to child exploitation. As a result, both the CEO and the chairman ended up leaving. During the pandemic, a number of rubber glove producers had been hit with import bans in the US. That had an impact on the companies themselves, as well as on the broader medical industry, which source rubber gloves.

Then finally, there have been plenty of examples in the apparel industry that have hit the news lines. If you look at all of those event-driven issues, they do have an impact on companies, and we as active investors are trying to understand these issues. Looking at how companies are managing these issues, we can take that as a proxy for supply chain management more broadly. From the engagements that we've had with companies, managing their supply chain well, including modern slavery-related risks, may lead to a more flexible supply chain and may lead to more supply chain stability. All of these factors combined we take into consideration when we're assessing how companies are managing modern slavery-related risk and how that can impact the financials of a company.

We think that the financial industry can play a role in detecting and disrupting modern slavery. It obviously starts with raising awareness. People need to understand that this social evil still persists. Then it needs to be tied into action, and there's plenty of action that we can take. For example, we've tried to take this through engagement, but we also recognize that this is a big socio-economic issue, and we cannot do it alone. So there's plenty of industry initiatives that focus on collaborative engagements, as well as investor statements that ask investing companies to provide more transparency. You can also think about collaborating with NGOs and expert organizations both for action as well as raising awareness internally.

Learn more about AB's approach to responsibility here

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SOURCE: AllianceBernstein

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The AllianceBernstein Holding Stock at the time of publication of the news with a raise of +0,33 % to 39,51USD on NYSE stock exchange (08. Februar 2023, 20:36 Uhr).