Retirement
Super funds can do more on modern slavery
An investment consultancy firm said that super funds need to dig deeper in their efforts to stamp out modern slavery.

Super funds can do more on modern slavery
An investment consultancy firm said that super funds need to dig deeper in their efforts to stamp out modern slavery.

Super funds have dipped their toes into the fight against modern slavery, but reports suggest there’s more to be done.
In a report marking one year since the introduction of the Modern Slavery Act, investment consultancy firm JANA said that the ongoing prevalence of slavery within modern supply chains remains a serious issue for everyone involved.
The firm found that approximately 5 per cent of superannuation funds reviewed conduct risk assessments of their supply chains that went beyond the first tier of their portfolio.
Internal measures to stamp out modern slavery also lagged, with just 45 per cent of surveyed funds having conducted internal modern slavery training.
Commenting on the report, JANA consultant Christopher Beattie reminded investors that modern slavery could occur in every industry and sector.
“While it is difficult to identify risks at the investee company level, the Australian superannuation industry have a material influence on the fight against modern slavery,” he said.
According to the United Nations and the Walk Free Foundation, there are an estimated 40 million victims of modern slavery around the world.
Mr Beattie said that super funds have an opportunity and obligation to use their size and influence to advocate against modern slavery.
“It is important for super funds and the investment industry as a whole to see the big picture and understand the expectations of their investors”, he said.
JANA found that just 15 per cent of surveyed superannuation firms to date took the step of producing a standalone Modern Slavery Policy.
While Mr Beattie said that it was pleasing to see the majority of large superannuation funds elect to produce Modern Slavery Statements, but emphasised the need for funds to go deeper in their analysis of their supply chains.
He said that this shows that the local superannuation sector is engaging with the issue, but added that many super funds need to “dive deeper and conduct wider analysis within and across asset classes over time to try and identify any instances of modern slavery”.
“It is essential that risk assessments look further down the supply chain at tiers three and four and beyond, where instances of modern slavery are typically identified,” he said.
About the author

About the author


Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. ...Read more

Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. ...Read more

Superannuation
Total value of Aussie super funds increases
KPMG has released the findings from a new review. ...Read more

Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. ...Read more

Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. ...Read more

Superannuation
Super fund returns at risk of being negative for this financial year
With two months to go in the current financial year, super funds are only just in the black. ...Read more

Superannuation
Some Aussies are missing out on $17k in super every year
A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age. ...Read more

Superannuation
APRA chair says 'good enough isn't good enough' for super sector
Wayne Byres discussed the sector at a FINSIA event. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. ...Read more

Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. ...Read more

Superannuation
Total value of Aussie super funds increases
KPMG has released the findings from a new review. ...Read more

Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. ...Read more

Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. ...Read more

Superannuation
Super fund returns at risk of being negative for this financial year
With two months to go in the current financial year, super funds are only just in the black. ...Read more

Superannuation
Some Aussies are missing out on $17k in super every year
A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age. ...Read more

Superannuation
APRA chair says 'good enough isn't good enough' for super sector
Wayne Byres discussed the sector at a FINSIA event. ...Read more