Modern slavery statement
Also called slavery and human trafficking statement, supply chain transparency statement
A modern slavery statement is an annual public report in which a company sets out the steps it has taken to find and address forced labour, human trafficking and child labour in its own operations and supply chains. The UK, Australia and Canada require large companies to publish one, approved by the board.
How it works
The company maps its operations and suppliers, assesses where the risk of modern slavery is highest by country, sector and type of work, and sets out its policies, due diligence and supplier controls. Statements commonly cover the business structure, policies, risk assessment, due diligence, training and measures of effectiveness. The board or equivalent governing body approves the statement, a director signs it, and it is published on the company's website.
Firms build the statement from supplier questionnaires, contract clauses, audits, grievance channels and remediation records. Banks and other financial firms also consider modern slavery risk in their lending and investment portfolios and in customers' activities, since forced labour proceeds are linked to money laundering. Statements are public, so customers, investors and campaigners use them to compare companies year on year.
The rules
Requires an annual slavery and human trafficking statement, approved by the board, signed by a director and linked from the homepage.
Commercial organisations carrying on business in the UK with total turnover of at least GBP 36 millionRequires annual modern slavery statements addressing mandatory criteria, approved by the principal governing body and lodged on a public government register.
Entities based or operating in Australia with annual consolidated revenue of at least AUD 100 millionRequires an annual report to the Minister of Public Safety by 31 May on steps taken to prevent and reduce forced labour and child labour, approved by the governing body and published.
Entities and government institutions that meet the Act's size and activity thresholdsCommon questions
Who must publish a UK modern slavery statement?
Any commercial organisation that supplies goods or services, carries on business in the UK and has total annual turnover of at least GBP 36 million, including turnover of its subsidiaries, must publish a statement for each financial year.
What should a statement include?
UK law lists suggested areas: organisational structure and supply chains, policies, due diligence, risk assessment, effectiveness measures and training. Australia's law makes its reporting criteria mandatory.
Does the US require modern slavery statements?
There is no federal statement requirement. The California Transparency in Supply Chains Act requires certain large retailers and manufacturers to disclose their efforts, and US customs law bars imports made with forced labour.
