Updated modern slavery guidance - time to take action and refresh your statement

The guidance, whilst not equating to an update on the legislation, brings into play key tenets of human rights due diligence as outlined in the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Due Diligence Guidance for Responsible Business Conduct (OECD Guidelines).

The purpose of Section 54 of the Act is to enable companies to disclose not just the actions they take to address the risks of modern slavery but also to disclose cases of modern slavery and the steps taken to provide remedy. While the Act has had some successes, it has stopped short of embedding meaningful action across business, with too many statements lacking substance. The intention of this new guidance is to support businesses in upholding both the letter and spirit of the law. Minister Jess Phillips notes in the introduction to the guidance that 'Modern Slavery is so prevalent that if businesses are not identifying risks and cases, they are probably not looking hard enough'.

What does the updated modern slavery statutory guidance cover?

Aimed at providing a more detailed framework to enable businesses to meaningfully act and report on modern slavery, the guidance lays out key steps to undertake in line with Section 54. The knowledge of experts working in the field is reflected in practical advice for businesses to follow. Importantly, it lays out Level 1 and Level 2 guidance, illustrating the minimum actions for those new to modern slavery due diligence and reporting alongside the deeper actions companies can take as they become more familiar with the requirements.

Key elements of the recommendations cover:

• Organisation structure, business and supply chain: understanding the governance of modern slavery as a key risk, and knowing what actions are needed to attain greater levels of visibility over the supply chain.
• Policies: production of clear organisational policies which influence staff and supplier decision making through effective implementation and communication.
• Assessing and managing risk: the key methods required to identify risks in an organisation’s operations and value chain, using the concept of saliency as a means to prioritise resources into areas of highest risk and using leverage to take action.
• Due diligence: the role of key elements in the due diligence cycle, including stakeholder engagement, grievance mechanisms and remediation policies and processes. This section also focuses on the tools that can mislead companies in believing action is being taken, if relied upon as the sole mechanism to identify modern slavery, including social audits.
• Training: methods and means to deliver robust training, focusing on the roles and responsibilities of those receiving the training as well as their position in the supply chain.
• Monitoring and evaluation: how to develop measures which evaluate effectiveness, with a focus on engagement with credible experts.

What should you do next?

As stated in the guidance ‘Businesses should be transparent about […] cases in their modern slavery statements, so we can all learn the lessons and improve our collective response to modern slavery.’ For those of us who have worked in this space for many years, this statement is refreshing. Transparency should always be a founding principle on which public statements are made. Disclosing cases of slavery found and addressed is not only good practice, but shows leadership.

Next steps:

• Take the time to review the content in your statement and ask yourself whether the information is comprehensive. Are the steps your business takes to identify risks and conduct due diligence meaningful in practice?
• Follow the letter and the spirit of the law, including structuring your statement in alignment with the framework of Section 54 and using the guidance to support the development of your work and disclosures.
• Be precise - the more information you disclose about what you do and don’t do, the more robust your statement will be.
• Ultimately, if you have never found a case of slavery in your value chain, ask yourself why. This is not always an indicator of good practice and in fact, may be quite the opposite.

How our sustainability experts can help

If you want to learn more about how to successfully act and report on modern slavery, please reach out to a member of our team. We are here to offer expert advice and support to help you with your reporting and disclosures, ensuring your organisation is both compliant and proactive in addressing modern slavery.

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