Australia's Property Sector Leads The Fight Against Modern Slavery
Australia is estimated to have around 40,000 modern slaves, a stark reality that cannot be ignored. However, amidst this troubling statistic, our property and construction leaders are stepping up to confront the risks of modern slavery head-on both within the country and abroad.
New research from Bond University examined the property and construction sector’s use of an online supplier platform by more than 40 sector leaders with a combined portfolio of over $1.5 trillion. The research analysed responses from more than 2,000 supplier assessments on the platform between 2019-2022.
The research, released today on International Day of Remembrance of Victims of Slavery, found nearly 50 percent of participants had adopted a modern slavery policy and actively sought assistance in understanding and reducing the risks faced by workers in their supply chains and operations.
Launched in 2019 by the Property Council of Australia and Informed 365, the platform enables members to collect, compare, and understand supply chain data on human rights and modern slavery. The collaboration by the property industry on this platform is more advanced and collaborative than other sectors.
Property Council National Policy Director Francesca Muskovic, pictured, said the property industry directly and indirectly impacts the lives of millions at home, abroad, and within our supply chains.
“Our industry provides jobs for more than 1.4 million Australians – more than mining and manufacturing combined. This extensive influence places us in a unique position to address the social impacts of our activities and improve people’s lives,” Ms Muskovic said.
"Our supply chains are geographically diverse, multi-tiered and complex. Understanding the human rights and modern slavery risks within them is essential in helping the industry make its supply chains more ethical and sustainable.
“The property sector has forged a world-leading position on environmental sustainability, and it is pleasing to see leaders continue to step up their efforts on social sustainability,” she said.
Key findings of the Bond University research, conducted by Professor Adrian Gepp, Professor Kuldeep Kumar, Mr Braedan van der Vegt, and Mr Isaac Tonkin, include:
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88 percent of suppliers to Australia’s leading property and construction firms say they now understand what modern slavery is, and where it could exist in local or international supply chains
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30 percent said they now provide training to employees and suppliers about human rights and modern slavery, an increase from 18 percent in 2020
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Nearly half (44 percent) said they had a remediation process or could implement one if a human rights incident or modern slavery was discovered in their supply chain or operations - a big increase from only 12 percent in 2020
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43 percent have engaged external help, expertise, and support around human rights and modern slavery to help manage the risks faced by workers in supply chains, compared with only 23 percent in 2020.
The report found there were discrepancies between large and smaller revenue companies, with more action being taken by larger supplier organisations, suggesting more support is needed for smaller companies.
"Many smaller firms were not aware of supply chain issues due to a lack of engagement, resources or audits, so there were mixed results in terms of supply chain mapping and risk assessment,” said Robin Mellon, CEO of Better Sydney, Board member for the UN Global Compact Network Australia, and Project Manager for the Property Council’s Human Rights and Modern Slavery Working Group.
"The report found 56 percent of suppliers who assessed their supply chains beyond their own immediate suppliers found some human rights issues or concerns, showing how important it is to investigate all levels of supply chains.”
Mr Mellon said that, across thousands of suppliers in the study, almost all firms earning more than $100m in revenue had some form of modern slavery risk assessment in place, with lower uptake by smaller firms probably due to fewer available resources.
“There are now excellent learning materials available through the Property Council, the UN Global Compact Network Australia, and anti-slavery organisations to help engage, educate and support suppliers towards continuous improvement,” Mr Mellon concluded.
Informed 365 CEO and modern slavery expert Nicholas Bernhardt said the proactive stance taken by Australia's property and construction industry in addressing modern slavery was commendable.
"The increase in awareness and actions taken by stakeholders in Australia's property and construction firms, as indicated by the study's findings, reflects a growing understanding of the complexities surrounding modern slavery and the importance of addressing it," he said.
"The disparities between larger and smaller revenue companies, as highlighted in the research, underscore the need for continued support and resources, particularly for smaller firms.”
The online platform, launched by the Property Council and Informed 365 in response to the Australian Government's Modern Slavery Act 2018, which ushered in a new reporting era for large companies in Australia, has become a pivotal tool for the property industry.
Australia’s Modern Slavery Act 2018 mandates annual reporting for companies with revenues of more than $100 million, necessitating increased transparency around the risks of harm to people from modern slavery in their operations and supply chains.
From the 2019 launch with 15 key players in property and construction, the platform has grown to include over 40 leading partner organisations in 2024. This solution provides a simple, yearly zero-cost assessment for thousands of suppliers to indicate their progress around human rights and modern slavery, with more than 30 free learning resources linked across essential topics.
With nearly 50 million people trapped in modern slavery worldwide, according to 2022 figures from the Global Slavery Index, industry collaboration is proving to be one of the best ways of increasing transparency, sharing best practices, understanding supply chains, and reducing the risks of harm to people.
