NASHVILLE, Tenn. / PERTH, WA. / London, UK, Monday, October 9, 2023 -- AllianceBernstein Holding L.P. (NYSE: AB), a leading global investment management and research firm, and Walk Free, an international human rights group working to accelerate the end of modern slavery, announced today the release of their briefing, “Bridging ESG Silos: The Intersection of Climate Change and Modern Slavery.”
In addition to the research, AB and Walk Free have collaborated on the development of a new framework and engagement guide to help investors better understand and act on the links between material investment risks related to climate change, the energy transition and modern slavery. These tools also offer supplementary climate-reporting recommendations addressing modern slavery risks, and guidance for company engagements.
“We have enjoyed working alongside and learning from the experts at Walk Free to dive deeper into the intersection of climate change and modern slavery and how it can affect investments,” said AB’s Director Social Research and Engagement—Saskia Kort-Chick. “We hope this new research and insightful case studies can serve as a helpful resource to global investors in making better investment decisions while taking into account unforeseen risk exposures related to modern slavery.”
“Walk Free collaborates with the investment community to strengthen understanding and management of modern slavery risk in investee companies and investment portfolios. This joint report with AllianceBernstein is a significant addition to our support. Climate change can be one of the gravest human rights threats of our time. It heightens vulnerability to human trafficking and modern slavery significantly. We encourage investors to use the tools in the report,” said Matthew Coghlan, Walk Free’s Financial Sector Engagement Manager.
Key takeaways from the report include:
- Climate change can lead to increased vulnerability to human trafficking: The research paper examines the effects of climate change and how they can adversely affect a wide range of human rights, including links between climate change, the energy transition, and increased vulnerability to human trafficking and modern slavery.
- Physical risks can trigger rapid displacement for victims: Physical risks, including both sudden-onset events and slow-onset events can impinge on the rights to life, housing, work, food, water and sanitation. These events can trigger rapid displacement or ongoing migration, which can in turn increase vulnerability to human trafficking and other forms of modern slavery and labor exploitation.
- Labor issues in the transition from high carbon to decarbonized economies: The transition risks in shifting from high carbon to decarbonized economies can result in loss of employment and livelihoods as fossil fuel production and consumption decline. Forced labor and child labor have already been well-documented in the supply chains of renewable energy industries: from extracting raw materials to manufacturing components and parts for solar, wind and hydrogen projects and in building the projects themselves.
- Climate-related human rights issues can present financially material risks and opportunities to investors: Assessing material financial risk in the investment decision-making processes requires the consideration of both environmental and social factors. Rethinking existing frameworks to account for the intersection of material climate change and human rights risks offers an opportunity for deeper analysis.
The new research was released in Tokyo alongside the PRI In Person 2023 through an insightful panel discussion between Walk Free and AB, discussing the intersection of climate change, human rights and the material risks those issues present to businesses. To read the full research paper visit: https://www.walkfree.org/reports.
CONTACTS:
ALLIANCEBERNSTEIN:
Gillian Gaimster, Media (EMEA)
Gillian.gaimster@alliancebernstein.com
Carly Symington, Media (US)
Carly.Symington@alliancebernstein.com
About AllianceBernstein:
AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals, and private wealth clients in major world markets. As of August 31, 2023, AllianceBernstein had $694 billion in assets under management. Additional information about AB may be found on our website, www.alliancebernstein.com.
About Walk Free:
Walk Free is an international human rights group working to accelerate the end of all forms of modern slavery. Walk Free is the creator of the Global Slavery Index, the world's most comprehensive data set on modern slavery. We use this data to mobilise powerful forces for change against these human rights abuses. We work with governments and regulators, businesses and investors, and faith and community leaders to drive systems change and we partner directly with frontline organisations to impact the lives of those vulnerable to modern slavery. We work with survivors to build the movement to end modern slavery, recognising that lived experience is expertise and they are central to identifying lasting solutions.