In 2018, we saw two key pieces of modern slavery legislation enacted in Australia, the Commonwealth Modern Slavery Act (2018) and the NSW Modern Slavery Act (2018). These new laws reflect a growing awareness of the need to address modern slavery in business operations and supply chains.
Modern day slavery involves exploitation, threats, violence and coercion, and is perpetrated by those seeking profit and gain at someone else’s expense. Modern slavery affects men, women and children, with women and girls accounting for 71% of modern slavery victims.
Slavery is illegal almost everywhere, yet it occurs in factories, mines, fields, fisheries, and in the provision of general goods and services. Two thirds of victims of modern slavery are living in the Asia-Pacific region, where there are strong links to Australian business supply chains.
Changes in NSW Government procurement
The NSW Modern Slavery Act (section 25, Part 3) provides powers for the NSW Procurement Board to monitor the effectiveness of due diligence procedures to ensure that the procurement of goods and services by government agencies is not the product of modern slavery.
In addition, there will be an electronic public register kept by the NSW Anti-Slavery Commissioner, which will not only identify commercial organisations that have not disclosed a modern slavery statement but also government agencies that are failing to comply with the directions of the Procurement Board, in relation to modern slavery.
NSW Government tender requirements
The NSW Government’s new tender requirements not only address modern slavery, but they also consider the broader sustainability impacts of environmental and human and labour rights issues in product manufacturing.
Government is starting to ask intelligent and meaningful questions about how companies approach and address sustainability in their business operations and supply chains and this is reflected in the introduction of supply chain and modern slavery sections in government tender documents.
Over the last few months, I have helped a number of clients implement policies and processes that have assisted them to meet the NSW Government Request for Tender requirements.
Tenderers were asked to demonstrate their approach to the following sustainability elements;
- Full transparency and traceability of supply chains
- Reduced carbon emissions in the transportation of products
- Zero safety incidents with product users
- Reliable product sustainability labels
- Minimising non-recyclable waste in the supply chain and packaging
- Strategies to manage workers health and safety in line with relevant legislation and NSW Government guidelines
Bringing awareness to modern slavery
The modern slavery section of the NSW Government’s Request for Tender document refers to the NSW Modern Slavery Act (2018) and defines modern slavery as exploitative practices, including slavery, servitude, human trafficking, forced labour and debt bondage.
The tender questions focus on how suppliers approach auditing and assurance, supplier engagement and risk management, and how they identify the likelihood of modern slavery in their supply chains. The NSW Government is also asking tenderers to demonstrate willingness to work with the government to implement and improve risks relating to modern slavery in their supply chains.
Whilst the modern slavery responses are not scored as part of the evaluation process, suppliers are encouraged to provide transparent, complete and candid responses.
This is a great approach by the NSW Government as they too understand how complex and challenging tackling modern slavery is.
Conclusion and next steps
The NSW Modern Slavery legislation requires NSW Government agencies to take reasonable steps to ensure goods and services procured by and for them are not the product of modern slavery. Commonwealth entities will also be required to publish modern slavery statements under the Commonwealth Modern Slavery Act (2018).
With the might of their purchasing power, government and industry have huge influence to bring about change in human and labour rights issues, as well as transparency and traceability of supply chains.
Although, at this stage, the tender process does not actually score entities’ responses in the modern slavery section, it does require tender applicants to address these questions.
The approach the NSW Government is taking is constructively encouraging entities to address modern slavery rather than punishing them and in turn discouraging transparency. This seems to strike a balance with incentivising businesses to take action and understanding that eradicating modern slavery is an ongoing, complex process.
The clients I’ve supported through the tender process have been keen to develop knowledge, capability and processes to work with their suppliers and they not only see the business case for addressing modern slavery, they also understand it’s the right thing to do.
So, if you already – or intend to – supply goods and services to either the NSW or Commonwealth Government, and you need help with modern slavery compliance or sustainable supply chain due diligence, then please get in touch.