b'SPOTLIGHT ON MODERN SLAVERY NSW LegislationRealising the benefits The NSW Modern Slavery Act 2018 requires commercialStrong due diligence frameworks create a robust governance and organisations with an annual turnover of $50 million or more toaccountability structure. At an operational level businesses benefit produce a Modern Slavery Statement on the incidence of modernfrom improved due diligence processes where they have closer slavery in their supply chains. The NSW was passed and assented torelationships with their suppliers and greater transparency over the legislation in June 2018, shortly before, the Commonwealthsupplier practices. Providing boards and leadership teams with the Government introduced their bill on 28 June 2018.information they need to efficiently discharge their duties, and use their oversight to motivate change, is a precondition for Both regimes seek to ensure that companies have a publicly- strengthening the organisations brand and trusted reputation. available modern slavery statement so that customers and the public can scrutinize enabling consumers and contractual counter-parties toFive Leading Practicesassess, make decisions and participate in a debate about ethical supply chains. Identifying Risks: Organisations on the front foot in identifying modern slavery risks have trained procurement staff that include modern slavery In June 2019 the NSW Government announced a review of theirrisk considerations as part of pre-qualification supplier questionnaire intended legislation which began in August 2019 with scheduledand interview processes. This includes strategic decision making relating release of review findings due on the 14th of February 2019. to new country entry and expanding product or production lines. Assessing data: Businesses are utilising data collected through How does Australia compare toself-assessment questionnaires and front-line team observations to other jurisdictions? compliment publicly sourced information (e.g. the Global Slavery Index) to risk assess large numbers of suppliers to segment procurement There are three comparable regulations in similar countries tocategory groups for further due diligence attention. Australia Mitigate: The most effective mitigation activities are those that focus on 1.The UK Modern Slavery Act (2015) is a broader Act, whichbuilding strong relationships with suppliers to improve supplier contains provisions confirming the offence of modern slavery.capabilities and to better understand their needs, limitations and those Reporting disclosures is one section (54), whereby guidelinesof their workforce. Involvement or leadership in industry specific forums for reporting criteria are provided, however, not mandated.(e.g. those for cotton and regional specific garment manufacture) are The threshold for companies to report is GBP36m howeverdemonstrating progress in affecting systematic change and positive the public sector is not subject to reporting provisions. impacts on the workforce. Remediate: Like mitigation, the most impactful remediation activities 2.The US, amendments to the Tariff Act of 1930 now forbiddo not occur in isolation. Partnerships between the private sector and goods made with forced labour from entering the country TheNGOs are proving to be very effective in supporting grievance California Transparency of Supply Chain Act (2012), requiresmechanisms, and facilitating payment of withheld wages. Some retailers and manufacturing companies with worldwide annualbusinesses are addressing remediation by directly employing survivors revenues of USD$100m or more that sell/operate in Californiaof modern slavery.to report on their specific actions to eradicate slavery andMonitor and Improve: Leading organisations are embedding supply human trafficking from its direct supply chain. chains (and modern slavery) risk factors within corporate risk registers to 3.The Corporate Duty of Vigilance Law was adopted by theensure formal monitoring, reporting and escalation of risks and progress French Parliament in February 2017. It requires approximatelyto mitigate risks. It is important for all organisations to recognise that 150 of the largest French companies to assess, address, andsupply chain risk management is an evolutionary process and will require report on the adverse impacts of their companies on peoplereview and adjustment as the business learns and adapts to its risk and the planet, including impacts linked to their companiesenvironment. and those of suppliers and sub-contractors. Concerned parties can bring allegations of noncompliance before theWhat AusLSA are doing? court, who can issue fines of up to EU10m for failing to publish a plan or EU30m where a failure has resulting inThe Australian Governments new Modern Slavery legislation and damages that would have otherwise been preventable.regulations will require most AusLSA members to develop new Formal enforcement provisions are unlikelyhowever, asystems to research, understand manage their supply chain for proposed central repository of statements would facilitatemodern slavery risks. AusLSA will work with members to share non-compliant companies to be named and shamed. resources and information and look at the opportunities to develop tools to better manage this process.'