Investors called on to help end modern slavery

Australian anti-slavery commissioner Chris Evans has told the Australian Council of Superannuation Investors (ACSI) summit that he will be pushing for tougher penalties on those who have not done enough to abolish slavery from their supply chains.

"As investors and corporate leaders, you have enormous capacity to successfully make a contribution to combating modern slavery," Evans said.

"Strong stewardship involves getting curious and asking not what actions you took, but rather what you achieved as a result of those actions. Action is a choice."

Evans said he will be advancing the debate in Australia about how businesses and investors can strengthen their response to forced labour and modern slavery and called on ACSI attendees to help.

Evans said while Australia's Modern Slavery Act has some "weaknesses", company directors have started having open discussions about the issue.

"I now have very engaged and informed conversations with directors as they've been forced to get on top of slavery issues inside the boardroom and within companies," he said.

"But quite frankly, many have not done much beyond the actual leaders. The pace of change has been slow, and the effort marginal at best."

Evans said while currently there are no penalties under the Act for companies who do not comply, he called on investors to put the pressure on those who do not as part of their due diligence - which he said would go a long way in the fight to end slavery.

"It's a real opportunity, I think, for investors to help shape the course of the debate, [gain] insights from across the portfolios, understand how human rights due diligence has been operationalised and where it's making a difference," Evans said.

Evans encouraged investors to work with companies who understand the risks modern slavery can have on a portfolio, and how eradicating it can positively impact the lives of the workers and all value to businesses.

"We need to strike a balance of proportionality and good risk management. I understand the need for a policy environment which directors can discharge the duties with clarity and confidence, and that uncertainty is not good for business," he said.

"The international, geographic and geopolitical environment is clearly, at the moment, truly challenging and will increase business risk. I think, though, in this space, we can take comfort and establish a long-term commitment to drive forced labour and modern slavery from business supply chains."