ACSI submission to the consultation on Strengthening the Modern Slavery Act.
On behalf of the Australian Council of Superannuation Investors (ACSI), thank you for the opportunity to make a submission to the consultation on Strengthening the Modern Slavery Act. ACSI has undertaken research and engagement with ASX300 companies on the issue of modern slavery over a number of years. Our submission is therefore drawn from our experience of the operations and disclosures of these companies.
Summary position
The importance of robust legislation in Australia to combat modern slavery
It is likely that modern slavery is present somewhere in the operations or supply chain of many Australian businesses. Identifying instances of modern slavery provides an opportunity to address it and make meaningful change. We encourage the Government to consider how it can focus attention more broadly on identifying modern slavery (including through changes to Act) so that there can be meaningful action that reduces exploitation in practice.
ACSI supports the proposed amendments to the Modern Slavery Act as a step forward to improving the quality of reporting, addressing persistent non-compliance, and streamlining regulatory compliance. Improving market practices and disclosure is essential for investors who rely on robust reporting to fulfil their own obligations under the Act.
In 2023, ACSI commissioned research that assessed the quality of ASX200 entities modern slavery statements. That research found only 5 statements that identified one or more allegations or instances of modern slavery. Given the Global Slavery Index estimates that there could be around 40,000 individuals living in modern slavery in Australia alone, there needs to be focus on identification (and then disclosure) of allegations or instances of modern slavery, to support meaningful action to eradicate it. Therefore, we recommend that the Government consider how it can promote this message.
ACSI welcomes the Government’s intention to initiate targeted consultations on due diligence requirements and high-risk declarations. Introducing a due diligence obligation would align Australia more closely with international best practice and enhance business productivity by reducing barriers to market access for Australian companies.
We have responded to the consultation questions in detail in Attachment. Below is a summary of our position on key elements of the consultation.
Mandatory reporting criteria
We support:
- Clearer, consolidated criteria to improve reporting quality and shift focus from disclosure to active risk management.
- New standalone criteria on grievance mechanisms and remediation, aligning with international standards like the UNGPs.
- Appropriately calibrated delegated legislation to clarify expectations, but caution the need for transparency, clear drafting, and public consultation.
- Practical guidance to help entities implement changes, especially in risk assessment, grievance handling, and remediation.
- New criterion on year-on-year progress to promote continuous improvement and address static reporting.
- Safeguards to protect survivors and whistleblowers, including anonymised reporting and survivor-informed protocols.
Please see Attachment for our more detailed responses tothe consultation questions.
