Institutional Shareholder Services’ (ISS) responsible investment arm, ISS ESG announced today the launch of its Modern Slavery Scorecard, a new tool to help investors assess modern slavery risks in their global portfolios and support their modern slavery and supply chain-related reporting.
According to ISS ESG, investors are experiencing rising disclosure expectations regarding their investments, with modern slavery and supply chain regulatory developments already beеn introduced or being considered in over 10 jurisdictions across North America, Europe, and Asia-Pacific.
The Scorecard enables investors to assess portfolio exposure to modern slavery and report on geographic, industry, and product risk, integrate granular data on risk, disclosure, and performance, as well as controversies into in-house assessments to inform due diligence processes, and identify modern slavery and controversies and slow-performing companies for engagement.
Dr. Maximilian Horster, Head of ISS ESG said:
“With human rights transparency and due diligence regulatory frameworks evolving rapidly, ISS ESG’s Modern Slavery Scorecard helps investors improve their risk management and stewardship of this important area.”
The tool is powered by data from three ISS ESG solutions, including the ESG Corporate Rating, Norm-Based Research and the ESG Country Rating, and it assesses 25 factors. As of this month, the Scorecard covers about 7,400 issuers globally.