Social Impact Indicator Directs Humane Investments
The ‘S’ Factor in ESG assesses supply chain health.
Until now, anyone who invested in organisations was buying into a couple of simple facts:
- 77% of businesses admit they’re likely to have modern slavery in their business. That means almost 80% of YOUR investments in organisations invest in modern slavery.
- Less than 6% of organisations have sufficient visibility of their supply chain to know if modern slavery is there. That means more than 94% of your investments YOU’RE unaware what you’re investing.
- More than two-thirds of consumers would not buy a product if they knew there was modern slavery behind it. Let’s replace ‘consumers’ with ‘investors’; logically, the numbers cannot be dramatically different.
Investors are Assessing More Organisations Based on ESG
ESG stands for environmental, social, and governance— and measures social impact. Investors have become more aware of these three pillars as a guideline for where they want to put their money.
Social Impact Investment Means Doing the Right Thing
The social impact field and ESG investment considerations pair with investors and fund managers trying to be ethical about where to place their money. Trying to do the right thing is hard; it should be – the right thing always was, is, and will be.
The ‘E,’ the Environmental element in ESG has proved difficult to achieve, with experts making mistakes in environmental areas, including tackling deforestation. But the ‘S’, the Social in ESG, has mostly been ignored. A quick scan of ESG literature will amply demonstrate. Go ahead, Google it.
Social Impact’s Slow Rise from the Bottom Rung
So, why has the ‘S’ been relegated? It’s been hard to determine what sort of impact business practices have had on humans and whether you’re buying into it. Let’s paraphrase it this way: it’s a lot easier not to know.
- How is your due diligence looking if 94 percent of the time you don’t possess enough information to know if you’re investing in modern slavery or not?
- Increasingly, the due diligence burden of proof is falling on businesses themselves to know, and investors to find out before investing. For example, do people know their retirement savings are involved in modern slavery?
- Legislative regimes are gradually cottoning onto this fact. In the coming few years, we predict that investment prospectuses will be required to include modern slavery statements.
- We also expect insurers to assume investors to know more about the ‘S’ in their investee’s supply chains for supply chain risk and director’s liability. How’s your insurance looking for breaches in your supply chain when you could have done something about it?
Knowledge is Power; It Seems Unwise Not to Wield It
Like Spiderman choosing not to use his powers to fight crime; if you knew your investments involved harming humans – would you still decide to put your money in them?
If you’re an investor, or an investment fund or fund manager, and you strive to be ethical, taking care of the ‘S’ in your ESG claims, there are a couple of ways we help organisations and their supply chains thrive.
Fixing the ‘S’ in ESG is Finally Possible
We’ve spent the last several years building the world’s most comprehensive human rights framework for organisations. We’ve built objective international standards into a massive matrix of subjective, contextual questions we plan to ask employers and employees all over the world.
We have combined our human rights framework with advanced hybrid blockchain and conventional technologies, more complex than the Hubble Telescope. With this combination, we’ll be able to secure through primary and secondary source evidence, working conditions in global workplaces. Anywhere in the world. Anywhere in the supply chain. At any time.
Hybrid Blockchain & Conventional Technology More Complex Than the Hubble Telescope.
We talk to millions of workers in real-time, all the time. We discover their workplace conditions. But we don’t crush or close down organisations with problems; we work together to fix issues. Unless, of course, the business is not willing to fix the problem. In these cases, they’re excluded from the platform and hence the supply chain.
Only Good Actors are Allowed In this Club; Thanks Very Much
Organisations get to see EVERY layer of the supply chain, including assessments of workplace conditions. Excuses for not knowing? Dead in the water.
The six percent of people that know something, and the 94 percent knowing nothing, will soon be the outdated paradigm.
We are Gunning for 100% Knowledge of the Supply Chain
We’re confident in the results of our work; in the vast majority of workplaces, 99% CI. Those are numbers you can quite literally take to the bank. Decades of experience in anti-slavery operations around the world means you better believe we’re knowledgeable.
How Will our Platform Work?
When investors join our platform, we help them view how their investees are treated as suppliers by our system. Our platform connects with every investee in the portfolio, and we talk to every worker in that investee’s workplaces.
Investees are required to import their supplier lists. And we talk to every worker in their supplier’s workplaces. And so on, down the line to the bottom.
Until recently, it used to be an enormous and blameworthy distance between Tier 1 and Tier 3 in the supply chain. The range, complexity, and opacity have masked and excused unethical behaviour for as long as supply chains have existed.
The new paradigm is that everyone is someone’s Tier 1; we discover it for you, map it for you, connect with every supplier everywhere, and talk to every worker anywhere in the world in real-time.
There are no more excuses not to know about slavery investments.
Modern Slavery Risk
Please make sure you’re not investing in slavery. Soon it will be possible to know whether you are or are not; there will be no more excuses for not knowing.
If you’re investing in a pension fund, for example, and you can guarantee that no business you invest in is carrying a modern slavery risk, what’s that worth to you and your clients? It would be wonderful to see how many people saving for their retirement demand to know if pensions are propping up slavers or not.
Invest in Freedom For People
If you’re an investor and can swear hand-on-heart that you’ve done everything possible (by the ‘now possible’ standard), how are you looking to potential clients?
Join our platform and we’ll show you how to have peace of mind while you make investment decisions. Please do your best; you AND your clients deserve it.