Modern Slavery Statement Disclosure Quality
Modern slavery disclosure is a critical step in mitigating the risk associated with modern slavery practices in companies’ operations and supply chains. The quality of the disclosure signals the level of commitments and efforts that the companies have put in managing these risks. This research project focuses on the disclosure quality of the modern slavery statements submitted by the 100 largest listed companies on the Australian Stock Exchange - ASX100 companies for FY2020. The analysis covered 99 statements available by 30th June 2021. Statements were read, scored and reviewed according to the scoring template with five sub-scores.
There was a wide dispersion in terms of the disclosure quality of the Modern Slavery Statements 2020 submitted by S&P/ASX100 companies. Large companies with a large number of employees and big supply spend scored well on modern slavery disclosure quality. Good modern slavery statements showed a history of continued effort in managing modern slavery and other human rights issues. Companies, investors and governments need to proactively work together to improve the reporting standards of modern slavery practices and develop a standardised framework for modern slavery statements.