The Australian Council of Superannuation Investors (ACSI) has call for legislation to require companies to monitor and address slavery risks in their operations and supply chains.
ACSI urged the government to introduce laws that required companies to report on the steps they were taking to ensure their supply chains were free of slavery. The council said this would enable increased scrutiny from investors and others, and would place greater accountability on companies to act.
ACSI said slavery, like other environmental, social, and governance (ESG) issues, could materially impact a company’s reputation, disrupt operations, divert management and board resources, and potentially lead to long running and costly legal actions.
ACSI said there were increasing reports of slavery in domestic operations of Australian businesses with agriculture, food supply, cleaning, security and hospitality sectors that have come under scrutiny.
The council’s chief executive, Louise Davidson, said: “Overall, self-monitoring and self-reporting have no driven adequate awareness of slavery risks and have allowed poor levels of transparency and accountability”.
“Although some companies are leading the way, devoting resources to map their exposure, this issue is too important to be left to a few responsible corporations,” she said.
“Investors need accurate information about how companies are managing slavery.”
ACSI recommended mandatory reporting, with provision for board approval, public disclosure, independent oversight, and civil penalties.
According to ACSI, there is an estimated 45.8 million people in 167 countries who are victims of slavery, with two-thirds located in the Asia-Pacific region, including 4,000 in Australia.
