Resources, energy and modern slavery: Practical responses to managing risks to people
This report provides practical responses for managing modern slavery risks in the resources and energy sectors. Covering topics such as risk to people and business, human rights risks, and key responses for addressing these risks, the report is an essential guide for companies seeking to effectively identify and manage modern slavery risks.
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OVERVIEW
Introduction to modern slavery and the reporting requirement
Australia’s Modern Slavery Act 2018 (Cth) requires certain entities to report on their efforts to identify and address risks of modern slavery in their global operations and supply chains. The report highlights the particular risks prevalent in the resources and energy sectors and offers tips for leading practice in managing modern slavery risks in these sectors.
The reality of modern slavery in resources and energy
The global nature of many operations and supply chains and the use of third-party contractors make it difficult to identify cases of modern slavery. The report highlights that modern slavery does take place in the resources and energy sectors and provides examples of the different forms that this can take.
Risk to people and risk to business
The Australian Government has made it clear that it expects the business community to identify and manage risks to people. Human rights due diligence and risk management require businesses to prioritise addressing the most severe risks to people first. Effective company responses to the modern slavery reporting requirement should be grounded in the human rights due diligence framework outlined in the 2011 United Nations Guiding Principles on Business and Human Rights (UNGPs). Businesses should address adverse human rights impacts by taking measures to prevent, mitigate, and, where appropriate, remediate human rights harm.
Modern slavery and human rights risks
The UN Guiding Principles on Business and Human Rights inform risk management expectations set out in standards relevant to the resources and energy sectors, such as the OECD Guidelines for Multinational Enterprises (OECD Guidelines) and the Equator Principles. Reporting on environmental, social, and governance (ESG) issues is increasingly required by lenders, investors, stock markets, and companies downstream in the supply chains of resources and energy companies.
Practical responses
Effective business responses to the mandatory reporting requirement should be grounded in the human rights due diligence framework outlined in the UNGPs. This means having a policy commitment to meet the business responsibility to respect human rights and conducting a human rights due diligence process to identify, prevent, mitigate, and account for how the business addresses its human rights risks, such as modern slavery.
Conclusion and checklist
A robust approach to managing modern slavery risks requires an understanding of the maturity of existing systems and controls and building in learning from international leading practice and fundamental human rights principles. The report provides a checklist for businesses starting to take action to manage their modern slavery risks.
Modern slavery remains an issue in the resources and energy sectors, despite the global nature of many operations and supply chains and the use of third-party contractors. Effective company responses to the mandatory reporting requirement should be grounded in the human rights due diligence framework outlined in the UNGPs, with organisations prioritising addressing the most severe risks to people first.
