Shining a light on the ‘S’ in ESG

Considering ESG (environmental, social, governance) factors like human rights and modern slavery is important in investor decisions. For private investors, it’s not just ethics. It’s about risk, reputation, and long-term value.

In 2025, social impact remains in focus. Governments, regulators, and investors demand greater transparency and accountability from businesses on how they treat people – both within their organisations and across global supply chains.

Australia’s Modern Slavery Act 2018 already requires large businesses to report annually on how they identify and address modern slavery risks. New Zealand continues to give murmurings it intends to follow in this direction, with proposed modern slavery legislation to mandate reporting for entities with revenue over NZD$50 million currently in the parliamentary ballot. 

These frameworks align with global standards and reflect a growing consensus: businesses must take responsibility for their connection to adverse human rights impacts in their operations and supply chains.

Modern slavery is not confined to distant corners of the world. It happens in New Zealand—. And it can be hidden in everyday products and services we use – from construction materials to clothing, electronics, and food. According to World Vision, New Zealand households spend an average of NZD$77 per week on goods likely linked to forced or child labour—.

For investors, this presents a material risk. Companies exposed to modern slavery in their supply chains face reputational damage, regulatory penalties, and potential loss of market access. Conversely, businesses that proactively manage these risks can enhance brand trust, attract ESG-conscious capital, and future-proof their operations.

At ANZ, our ESG approach is embedded in our purpose: to shape a world where people and communities thrive. Our purpose is reflected in our approach to human rights. We respect the human rights of our employees, customers and the people in our communities. We expect the same respect for human rights from those who work for, or with, us including our employees, contingent workers and directors, and those with whom we have business relationships. 

Our Human Rights Statement outlines our approach to respecting human rights and is informed by the United Nations Guiding Principles on Business and Human Rights (UNGPs).

ANZ Group publishes an annual Modern Slavery Statement which outlines ANZ’s efforts to address modern slavery risk, including through building awareness, improving due diligence, and strengthening policies across our operations and supply chain.

Beyond compliance and risk management, many investors are actively seeking opportunities to drive positive social change. Impact investing, where capital is deployed to generate measurable social outcomes alongside financial returns, is gaining momentum. Investors want to know not just what companies do, but how they do it.

Addressing modern slavery is not without complexity and modern slavery risks are not stagnant. It requires data, collaboration, and ongoing vigilance. For investors, it can be challenging to assess which companies are genuinely committed versus those simply ticking boxes.

That’s where transparency reporting, and tools and frameworks can be helpful. The Global Reporting Initiative (GRI) and the UNGPs provide helpful benchmarks for evaluating corporate performance.

As a private investor, you don’t need to be an expert in human rights law to make informed decisions. But understanding the social aspects of ESG can help you:

• Mitigate risk: Avoid exposure to companies with poor labour practices or opaque supply chains.
• Align values with investments: Support businesses that treat people fairly and contribute to social progress.
• Enhance long-term returns: Invest in companies that are resilient, well-governed, and trusted by stakeholders.

At ANZ Private, we’re here to help you navigate this evolving landscape. ANZ has included an ESG-lens as a core component of the way we research, select and manage our investments. This approach applies to all ANZ investment mandates locally and internationally to implement our responsible investment framework. This includes engagement with our external managers and management and boards of companies we invest in. Please talk with your Private Banker if you would like more information on ANZ’s approach to ESG investing.

Modern slavery is a confronting issue – but it’s also one where investors can make a meaningful difference. By asking the right questions, supporting responsible businesses, and integrating social ESG factors into your strategy, you’re not just protecting your portfolio. You’re helping shape a more just and sustainable future.