Australia should force companies to report potential human rights abuses as part of a review of its modern slavery disclosure rules, according to an analyst at a A$16 billion ($12 billion) fund manager who helped draft the current law.
That revision would help Australia more closely align its rules with some European countries that are forcing companies to consider human rights violations like worker exploitation and a safe work environment in their assessment of operations and supply chains.
There will be a “little bit of pressure” to match Europe, said Mans Carlsson, the head of environmental, social and governance research at Ausbil Investment Management Ltd. “Europe is calling for this mandatory human rights due diligence legislation, so I think that conversation will definitely be happening in Australia too.”
Australia began a review of its modern slavery disclosure rules last week and said it would consider fining companies that don’t comply, according to the terms of reference. It’s also considering appointing an independent body to oversee and enforce the laws.
The country’s laws were among the toughest in the world when initially implemented as they require companies ranging from miners to pension funds to assess supply chains for potential slavery risks. The U.K. is updating its anti-slavery legislation while Europe now requires firms to identify actual or potential adverse human rights and environmental impacts.
Australia’s slavery laws only consider issues such as forced or child labor, indentured staff or illegal fees paid to recruiters.
Carlsson hopes a uniform reporting standard across jurisdictions will come in time as “it’s not a good thing” if there are too many frameworks, forcing companies to spend more time writing reports than “what they should be doing,” he said.
Sydney-based Ausbil is a unit of New York Life Insurance Co.
Photograph: Boats are anchored in the harbor near the central business district of Sydney. Photographer: Brendon Thorne/Bloomberg
Topics Australia
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