The Greener Way

Portfolio poison: How ignoring modern slavery risks your returns

Question:
Why does modern slavery persist despite Australia’s Modern Slavery Act, and what practical steps can investors and fund managers take to drive real change beyond compliance?
Answer:
Modern slavery remains a global issue, with an estimated 50 million people affected. Australia’s Modern Slavery Act has increased awareness but hasn’t yet reduced incidents. According to Måns Carlsson, OAM, head of ESG at Ausbil Active Sustainable Equity, the key is moving beyond a “compliance mindset” to genuine leadership. This means harmonising laws internationally, adopting human rights due diligence (not just reporting), and using investor influence for practical engagement with companies.
Investors can’t guarantee portfolios are free from modern slavery risk, but they can:
• Incentivise suppliers to meet responsible sourcing standards, focusing on deeper supply chain tiers (not just tier one).
• Use tools like worker voice technology for real-time feedback, rather than relying solely on annual audits.
• Collaborate with other investors and advocate for stronger, harmonised laws (e.g., import bans on goods made with forced labour).
• Support companies to improve, rewarding progress rather than demanding perfection.
The real power lies in ongoing, practical engagement and policy advocacy, not just risk assessments or box-ticking.
Why it matters:
Modern slavery is not just a legal or ethical issue—it’s a material risk for companies and investors. Reputational damage (as seen with Boohoo in the UK) can hit share prices hard and fast. As global regulation tightens, companies that fail to act may find their goods blocked from key markets. For investors, supporting companies to improve standards helps reduce risk, avoid negative surprises, and contribute to positive change.
Sources:
• Måns Carlsson, head of ESG, Ausbil Active Sustainable Equity
• Michelle Baltazar, executive director of media, FS Sustainability
• RIAA Human Rights Working Group toolkits
Timestamps:
00:00 – Why modern slavery persists; need for global collaboration
02:01 – Investor relevance: reputational risk, earnings sustainability
05:51 – Harmonisation, human rights due diligence, import bans
08:40 – Practical steps: engagement, worker voice tools, supplier incentives
13:19 – Responsible purchasing and unintended consequences
16:40 – Monitoring deeper supply chain tiers
18:32 – Accountability and ongoing engagement
20:54 – ESG, risk management, and performance

We record on Gadigal Land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

Is Your Portfolio Missing Out? The Green Bond Boom Explained

Question:
How have green bonds evolved, what risks and opportunities do they present for investors, and what are the biggest misconceptions about this asset class?

Answer:
Green bonds have grown into a US $2 trillion global market, with Europe leading but APAC and emerging markets catching up. According to Johann Ple, senior portfolio manager at BNP Paribas Asset Management, green bonds now offer broad sector diversification and transparency, making them a credible alternative to conventional bonds. Risks are similar to traditional bonds (interest rates, credit spreads), but greenwashing and sector concentration require careful due diligence. Misconceptions about lower returns (“greenium”) are fading, and green bonds are increasingly viable for all investors, not just those focused on sustainability. Australian super funds and institutional investors can now build custom strategies, aligning portfolios with net zero ambitions without sacrificing performance.

Why it matters:
For investors, green bonds represent a way to combine positive environmental impact with competitive returns and transparency. The asset class is mature enough for custom strategies, with over 800 issuers and broad sector representation. Understanding the risks and debunking myths is crucial for informed allocation, especially as demand grows in Australia and globally.

Sources:
• Johann Ple, senior portfolio manager, BNP Paribas Asset Management
• Michelle Baltazar, executive director of media, FS Sustainability
• Responsible Investing Association Australia
• EU Green Bond Standards, APAC market data

Timestamps:
00:00 US as a missed opportunity for green bonds
02:07 Market size: $2 trillion, Europe dominates, APAC and emerging markets rising
03:50 Sector diversification: utilities, banks, real estate, transport, telecom
06:54 Risks: conventional bond risks, greenwashing, sector concentration
09:00 Greenwashing: issuer and project due diligence
11:25 Australia’s role: investor and issuer, custom strategies for super funds
13:03 Misconceptions: returns, “greenium”, ESG backlash
16:54 Growth drivers: APAC, emerging markets, not just Europe

We record on Gadigal land and pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

A conversation with Josh Gilbert, head of geospatial strategy, ISS STOXX Sustainability, on how geospatial intelligence is reshaping climate and nature risk analysis for investors.

Data overload or data goldmine? Investors race to decode nature’s signals
Question:
How can geospatial tools help investors move from climate risk mapping to nature risk management, and what does this mean for investment decisions?
Answer:
Geospatial data, like satellite imagery and sensor data, has moved from being a reporting tool to a strategic asset for investors. According to Josh Gilbert, head of geospatial strategy, ISS STOXX Sustainability, the challenge is no longer data starvation but “data digestion”: translating abundant, complex environmental data into clear, actionable financial insights. Sectors with tangible assets (like mining, real estate, and infrastructure) are most directly impacted, but as supply chains and nature risks become more visible, all asset classes are affected. The investors who learn to integrate geospatial and nature data into their decision-making will gain a competitive edge.
Why it matters:
For investors, this shift means that understanding climate and nature risks is no longer optional or just a compliance exercise. The ability to interpret and act on geospatial data will increasingly drive portfolio resilience, risk management, and even alpha generation. Those who treat nature and climate data as core investment signals, not just pretty dashboards, will be better positioned in a volatile, changing world.
Sources:
• Josh Gilbert, head of geospatial strategy, ISS Stoxx Sustainability
• Michelle Baltazar, executive director of media, FS Sustainability
• European Space Agency, SustGlobal, Responsible Investing Association Australia
• Industry frameworks: TCFD, IFRS, SASB

Timestamps:
00:00 Data digestion vs data starvation
01:15 Guest background: from economics to geospatial strategy
03:22 Why investors struggle with climate and nature risk
04:59 How geospatial data moves from reporting to real investment insight
06:22 Sectors most impacted by climate and nature risk
08:44 Misconceptions: dashboards vs actionable metrics
10:53 Nature risk management: real-world examples
12:32 The next decade: AI, numeric models, and financial integration
15:32 Competitive edge for early adopters
16:56 Final thoughts and wrap-up
We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

*Both FS Sustainability and ISS STOXX Sustainability are owned by ISS STOXX.

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

HALO trade: Why hard assets are the new gold for sustainable investors
Question:
What is the HALO trade, and why are asset-heavy companies suddenly attracting investor attention in the age of AI and decarbonisation?
Short answer:
The HALO trade (Hard Assets, Low Obsolescence) is reshaping investment strategies. According to Dierdre Cooper, companies tied to physical infrastructure (like grids, pipelines, and industrial equipment) are seeing renewed growth as AI drives demand for electricity and hard assets. Unlike asset-light sectors threatened by automation, these companies are essential for electrification and climate solutions. Investors who focus on this theme may benefit from attractive valuations and strong growth, especially as decarbonisation and electrification accelerate globally.
Why it matters:
For sustainable investors, the HALO trade highlights a shift from tech and asset-light stocks to companies with tangible, enduring value. Understanding this trend means recognising the importance of infrastructure, energy storage, and electrification in a world increasingly powered by AI and climate technology. Missing this shift could mean missing out on the next wave of growth and resilience in global portfolios.
Sources:
• Michelle Baltazar, executive director of media, FS Sustainability
• Dierdre Cooper, head of sustainable equity, Ninety One
• Ninety One Global Environment strategy
• Companies: Contemporary Amperex Technology Co., Limited (CATL), Hongfa Technology, Shaman Electric Co., Limited, Infineon Technologies, TE Connectivity
• Industry context: MSCI All Country World Index, decarbonisation trends

Timestamps:
00:00 Asset-heavy companies and electrification
00:29 HALO trade explained
01:24 Ninety One’s sustainable investing approach
03:15 Global environment strategy vs traditional equity
06:11 AI, asset-light vs asset-heavy sectors
08:32 Data centres and electricity demand
11:30 PE multiples and growth outlook
13:13 Market cycles and investor sentiment
14:28 Electricity as “all of the above” solution
17:25 Exciting trends for the next decade
19:52 Autonomous robots and electrification
20:42 Risks and selectivity in thematic investing
21:33 Wrap-up and final thoughts

We record on Gadigal Land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

AI, Workplace Culture and Labor Rights: Why human capital risk is financially material
This week on The Greener Way, host Michelle Baltazar speaks with Emily DeMasi, regional team lead - North America EOS at Federated Hermes, about why human capital risks, such as workplace culture, harassment and violence, labour rights, and supply chain conditions, are financially material for investors through impacts on productivity, reputation, and long-term returns.
DeMasi explains how stewardship engagement assesses human capital using employee surveys, whistleblower mechanisms, and core disclosure metrics such as workforce size (including gig and contract workers), turnover, demographics, and total workforce cost.
They discuss AI’s double-edged impact, from efficiencies and training needs to job displacement anxiety and potential worker surveillance.

00:39 Why human capital matters
02:45 Workplace harassment as material risk
04:29 Do employee surveys work?
05:50 Investor engagement metrics
07:55 AI workforce disruption
11:13 Case studies
13:43 Best practice supply chain frameworks
16:18 Why stewardship is crucial
17:42 Looking ahead on AI and governance

We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy