Industry Insights

Property and Construction

High Risk of Modern Slavery

With approximately 18% of modern slavery victims being found in the property and construction industry, the ILO ranks construction as the sector with the second-highest proportion of victims of forced labour worldwide in the supply chain of construction goods.

Construction is a labour-intensive sector reliant on a base-skill workforce in which temporary and irregular work is prevalent, leading to a higher risk of exploitative practices.
Raw materials are primarily sourced from locations with a high risk of modern slavery (due to conflict, poverty, displacement, weak rule of law, corruption, and/or state failure to protect human rights).
Collaboration within the construction industry and other sectors can radically increase transparency across supply chains, rendering the due diligence process more cost-effective and insightful for all parties involved.

Agriculture and Fishing

High risk of modern slavery.

With approximately 11% of forced labour victims worldwide being found within the agricultural and fishing sector, the International Labour Organisation (ILO) ranks agriculture, alongside forestry and fishing, as the sector with the fourth-highest proportion of victims of forced labour. Commodities that involve a high risk of modern slavery include cocoa, fish, palm oil, coffee and sugar.

Modern Slavery Risk factors for the Agriculture industry include a vulnerable workforce in a labour-intensive sector, low-tier suppliers in high-risk geographies, high-risk business practices and reliance on seasonal, irregular and migrant workers.
The mistreatment and exploitation of workers within agriculture and fishing also occur within Australian borders, with migrant workers and foreign students being particularly vulnerable to exploitative practices and modern slavery.
The adoption of innovations and a collaborative approach across the industry will be important to achieving complete traceability of supply chains, identifying high-risk areas of modern slavery, transforming high-risk business models addressing rights violations and creating a sustainable agriculture sector. Download our Industry Insights Paper on the Agriculture and Fishing

Garment And Textile

High Risk of Modern Slavery

There is a high risk of modern slavery identified in the garment and textile industry. The International Labour Organisation (ILO) ranks manufacturing as the sector with the third-highest proportion of victims of forced labour worldwide. Australian businesses may also be exposed with more than 70% of imported clothes in Australia being sourced from countries at high risk of modern slavery.

Modern Slavery Risk in Apparel factors include a vulnerable workforce in a labour-intensive sector, low-tier suppliers in high risk geographies, unethical purchasing practices by companies and the prevalence of sub-contracting practices employed by suppliers.
Women and girls are disproportionately affected by modern slavery in the garment and textile industry with approximately 80% of the 60 million people working in the sector being women.
Businesses can build their capacity to identify and manage modern slavery risks through effective due diligence procedures. Ensuring that apparel suppliers understand and comply with the labour laws is critical to protect workers’ rights and safeguard businesses against reputational damage.

MINING

High risk of modern slavery.

There is a high risk of modern slavery involved in the mining industry. Approximately 4% of forced labour victims worldwide are within the mining sector. Businesses with international projects in high-risk locations where there is little regulation of mining activities may be particularly exposed to risks of modern slavery.

Modern Slavery Risk factors in mining include a vulnerable workforce, high-risk business models, low-tier suppliers in high-risk geographies as well as lack of transparency and visibility at each stage of the supply chain.
Mining companies operating internationally are often based in countries where conflict, corruption, weak regulation and poverty significantly increase the risk of dangerous working conditions and prevalence of forced labour and modern slavery.
Businesses should aim to adopt a people-centred response after uncovering modern slavery risks associated with a supplier to avoid adverse effects for individuals within the supply chain and prevent making workers even more vulnerable.

Financial Services

High risk of modern slavery.

There is a high risk of modern slavery involved in the financial services industry. Pressure is growing on financial service providers to address risks of modern slavery across their entire value chain, including their investments, insurance products, procurement activities and customers, for effective ESG reporting

Modern Slavery risk factors for financial services include lack of transparency in supply chains, low-tier suppliers in high-risk geographies and customers utilising finance for criminal purposes.
Not only are financial institutions exposed to modern slavery risks within their supply chain, they are also at risk of having hidden risks within their business practices as illegal profits are often laundered through legitimate financial services.
Due to their influence over global business, financial services firms within this sector are uniquely positioned to go beyond eliminating risks to actively fighting against the role modern slavery plays in the economy today and excel in ESG reporting.

HEALTHCARE

High risk of modern slavery.

The size and scale of global medical procurement means enormous opportunities for a transition in sustainable production and consumption. Mitigating the risks of modern slavery and taking actions on policy reform and remediation, will help lead other sectors into transformative action against modern slavery.

Modern slavery risks are present within the supply chains of healthcare providers of goods and services. Most medical goods are made in high risk geographies where labour rights abuses have been found. Research shows that child labour and forced labour are directly associated in the processing of raw materials, production and manufacturing of medical goods. Domestic risks of modern slavery are found in recruitment companies such as hiring cleaning, construction and security services for health facilities.
With the nature of medical goods, such as PPE, being cheap and disposable, many suppliers hire cheap labour to manufacture these goods from locations with a high risk of modern slavery. This may be due to conflict, displacement, weak rule of law, corruption, and the state failure to protect human rights.
Sourcing essential health goods involves complex multi-tiered supply chains, resulting in limited visibility of modern’s slavery risks. These risks are most prevalent in the procurement of medical goods such as PPE (medical gloves & uniform), medical devices, equipment, electronics and consumables.

Education

Diverse Risks of Modern Slavery

The risks of modern slavery in the education sector are diverse due to the complex nature of institutions notably universities. As the sector intersects with a number of industries including construction, cleaning, security, hospitality, electronics and health among others, efforts to address modern slavery risk require an integrated approach. What is often overlooked in the sector are the risks to the student body and especially the vulnerability of international students. Additionally, there is the challenge of accounting for modern slavery risks in research projects where international travel is involved.

At the height of the Covid-19 pandemic, international students studying in Australia who were financially supported by family found themselves with less or no support from the Australian government or their education providers. As a result, reports emerged that many international students were struggling to meet their basic living needs such as food and rent. International students were excluded from governmental support such as JobKeeper and JobSeeker and other support packages for those unemployed due to Covid-19 restrictions.
Modern Slavey risks are present in the supply chains of higher education facilities. University merchandise such as stationary, clothes and bags is a modern slavery risk. These products are made fast, in bulk and cheap usually in high risk countries such as China. IT and software equipment is an industry known for human rights and labour abuses, reliant on low skilled and low paid workforce.
Sourcing higher education equipment involves complex multi-tiered supply chains, resulting in limited visibility of modern’s slavery risks. These risks are most prevalent in the procurement of high risks goods and services, such as IT equipment.

SME Toolkit

Are you ready to comply with MSA?

The emergence of ESG reporting (Environmental, Social and Governance) at the top of town is being driven by investor and customer demands. ESG Reporting might seems like a ‘good to have’ but in reality it’s becoming a ‘must have’ for small business. Of the myriad issues and compliance mechanisms on the table, the Modern Slavery Act provides a great foundation to build on. To be compliant requires a bit of planing to strategically integrate the actions required into your business as usual. That’s why we’ve designed the SME Toolkit.