Modern Slavery Disclosure Quality of the Largest ASX-Listed Companies

Australia is among a few countries that has established a national modern slavery reporting regime. The Australian Government’s Modern Slavery Act (the Act) was passed in 2018 and went through a statutory review in 2021. As stipulated by the Act, organizations with annual consolidated revenue of at least AUS$100 million have to submit a statement on modern slavery risks in their operations and supply chains, and how they are addressing and preventing those risks. The Act prescribes seven mandatory criteria for reporting entities. This chapter discusses the findings from novel studies assessing the modern slavery statements submitted by the largest companies listed on the Australian Securities Exchange (ASX). Our studies revealed a wide dispersion in disclosure quality in the first year. In the second year of modern slavery reporting for the financial year 2021, our study found a substantial improvement in quality. Specifically, disclosures were improved in the description of the supply chains, risk identification and management, and due diligence processes. Areas that still require further attention for the modern slavery reporting of ASX 100 companies include their disclosures of remediation processes and measuring the effectiveness of modern slavery actions.