UK Modern Slavery Act: Does Your Disclosure Hit the Mark?

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UK Modern Slavery Act: Does Your Disclosure Hit the Mark?

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Today’s Moderator

Sarah CarpenterAssent ComplianceBusiness & Human Rights Analyst







What Does the Legislation Say?

Why Was It Developed?

Are Statements Hitting the Mark?

How Do Statements Get a Passing Grade?

How Is the MSA Driving Change?

Q&A

Agenda

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INTRODUCTION







Assent Product SuitesOur Market Leading Platform

Ethical Sourcing

Materials Management

Supplier Information Management

InspectionsConfigurable Surveys & Declarable Substance

Lists







IntroductionWhat Does the Legislation Say?







The Legislative Landscape

September 2010 January 2015 March 2015 February 2016 January 2017

California Transparency

in Supply Chains Act

US Trade Facilitation and

Trade Enforcement Act, elimination of

consumptive demand exception

EU Non-Financial

Disclosure Directive

US Federal Acquisition

Regulation Final Rule on Combating

Trafficking in Persons (52.222-50)

UK Modern Slavery Act

French Duty of Care Law, etc.

More to Come...







The Legislative Landscape

1. Disclosure-Based Requirements◆ MSA, California TiSCA, Proposed French Due Diligence Regulation, EU NFR Directive

2. Affirmative Action & Prohibited Activities◆ FAR Rule 52.222.50

3. Customs & Trade Laws◆ U.S. Trade Facilitation & Trade Enforcement Act







The UK Modern Slavery Act

Who? Commercial organizations carrying out business in the UK with a total annual turnover of £36M or more

What? Disclose efforts made during the previous financial year to ensure their business operations and supply chains are free from slavery and human trafficking

Remedy? Action for injunctive relief brought by the Secretary of State







Notable Dates

26 March 2015 29 October 2015 30 September 2016

The UK Modern Slavery Act passed

into law

UK Home Office publishes guidance on the UK Modern

Slavery Act

First qualifying organizations

(financial years ending 31 March 2016) due to

publish their Statement*

*The UK Home Office guidance suggests companies should publish their statements within six months of the end of the financial year.







Today’s Presenter

Patricia CarrierBusiness & Human Rights Resource Centre Project ManagerUK Modern Slavery Act Registry







Organization Overviews

Assent Compliance provides best-in-class compliance solutions that help organizations with their global, environmental and human

rights compliance strategies.

Business & Human Rights Resource Centre is an international NGO that tracks the human rights impacts of over 6,900 companies, making information available on its

nine-language website. The Resource Centre seeks responses from companies when concerns are raised by

civil society. Further, the Resource Centre seeks to amplify the voice and work of activists on the ground through the work of its regional researchers located around the globe.







Feature PresentationPRESENTER, TITLE & COMPANY Feature Presentation







Section 54 – Transparency in Supply Chains

◆ Result of lobbying efforts of civil society and big business

◆ Civil society wanted mandatory transparency

◆ Big business wanted level playing field, not just focus on usual suspects







MSA & California Transparency in Supply Chains Act of 2010

◆ MSA is aimed at all sectors, not just retailers and manufacturers

◆ MSA applies to goods and services, not just product supply chains

◆ MSA applies to companies with a much lower turnover threshold (£36 million vs $100 million)

◆ MSA requires annual reporting







UK Modern Slavery Act Registry

https://business-humanrights.org/en/uk-modern-slavery-act-registry









Minimum Legal Requirements

◆ Signed by a director (or equivalent)

◆ Approved by the board (or equivalent)

◆ Link on homepage of company website







Six Suggested Criteria

Business Structure and Supply Chains

Policies

Due Diligence

Risk Assessment and Management

Effectiveness

Training

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FTSE 100 at the Starting Line

An Analysis of Company Statements Under the UK

Modern Slavery Act







Tiering of Statements







The Highest Performing Companies Provided Detailed Disclosure:

◆ Risks and/or instances of modern slavery

◆ Where in supply chain

◆ How these have been addressed and/or remedied







Failure to Meet Expectations

Lack of reporting on:

◆ The structure and complexity of supply chains

◆ Specific risks in the supply chain







Why Are There So Few Leaders in Reporting?

◆ First year

◆ Risk averse advisors (risk of litigation)

◆ Herd mentality

◆ Fear of reputational risk







MSA Driving Change

◆ Anticipatory positive action taken by 15 of the 27 FTSE 100 companies

◆ Report by Ethical Trading Initiative and Hult International Business School◇ Leadership◇ Priority issue◇ Investor

◆ International trend toward mandatory due diligence legislation







Race to the Top

More companies have published statements and are showing improved standards of reporting

◆ Associated British Foods◆ Barratt Developments ◆ Primark◆ Debenhams







Striking a Balance: Highlighting Positive Action While Promoting Improvement

Baroness Young’s Private Members’ Bill proposes three amendments to MSA: ◆ Include public bodies procuring goods and services into Section 54(1) to

require them to prepare a slavery and human trafficking statement

◆ Require the Secretary of State to publish a list of all commercial organisations that are captured by the reporting requirement

◆ Exclude companies that fail to publish a statement from bidding for public sector contracts







Registry as a Resource

◆ BHRRC – Promote transparency and accountability in reporting

◆ Companies – Learn from peers

◆ Investors – Assess company risks

◆ Civil society – Award companies showing leadership and pushing laggards into action

https://business-humanrights.org/en







Q&A Discussion

Questions?







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