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"How we assess and address modern slavery risks in the companies in which we invest

The Commonwealth Modern Slavery Act 2018 Guidance for Reporting Entities states that “an investment firm is not required to individually monitor or report on each of its investees and their operations and supply chains”.

Although the companies in which AFIC invests do not form part of our supply chain, we operate a responsible investment policy that includes environmental, social and governance (ESG) issues as an important part of the investment process. In this respect, the risk of modern slavery would be included within the meaning of "ESG" in this investment process.

We expect the companies in which we invest to meet their legal and social obligations in a manner which ensures their businesses generate sound returns over the long term. Companies that have a negative effect on society risk exposure to litigation, regulatory enforcement, reputation and brand integrity damage, and potentially under-perform over the long-term.

As stated above, AFIC primarily invests in large companies listed on the ASX and NZX. As a result, AFIC is limited in what information it has access to and in its ability to exercise control over the investee company. AFIC typically invests in large companies domiciled in Australia who are quite likely to produce their own modern slavery statements, and these will provide a useful insight into their approach to (and potential exposure to) modern slavery in their operations and supply chains."

I have changed the answer to No. Whilst the company mentions having a responsible investment policy it is not clear if the company screens possible investees taking the ESG (including modern slavery) criteria into account.