Monash's report on modern slavery statements shows improvements – but serious shortcomings persist

The Australian Anti-Slavery Commissioner has welcomed the findings of the Modern Slavery Disclosure Quality Report FY24, released today by the Monash Centre for Financial Studies. The report highlights improvements in reporting practices among Australia’s largest companies, while also exposing persistent shortcomings, and the need for stronger legislative requirements, penalties, and robust due diligence measures.

The report shows that a growing number of ASX100 companies are lifting the quality of their Modern Slavery Statements, with more than half receiving an A grade. This marks a substantial improvement from just 3 percent in the inaugural FY20 reporting year. Many companies are not only reporting risks, but also taking steps to address modern slavery in their supply chains, in line with international standards such as the UN Guiding Principles on Business and Human Rights.

However, the report highlights continuing and concerning shortcomings and broader observations indicating further issues:

• Persistent laggards: Several top ASX100 companies still struggle to meet reporting standards
• Non-reporting and weaker performance: Companies outside the ASX100 often provide lower-quality reports and many are still failing to report at all
• Actions vs reporting: Many statements report activities rather than measurable outcomes or impact, raising questions whether improvements reflect real change for people or simply just better documentation.

"Monash University’s report confirms that while some companies are showing leadership, others are falling short of expected standards," said the Australian Anti-Slavery Commissioner, Chris Evans. "Progress in reporting among our top listed companies is encouraging, but we must not lose sight of the hundreds of reporting entities that continue to submit poor-quality statements or fail to report entirely. These continued failures underscore the urgent need to strengthen legislation, penalties for non-compliance, and mandatory due diligence to lift standards across all reporting entities."

To address these issues, the Commissioner will engage directly with companies whose reporting falls below good practice, offering guidance to help improve the quality and substance of their Modern Slavery Statements. 

"Our goal is not only to recognise leaders, but to lift standards across the board," the Commissioner said. "Reporting is a vital first step, but it must be coupled with action. I look forward to working with companies to ensure that their statements reflect meaningful progress in addressing these risks."

The report reinforces the importance of high-quality company disclosure as a transparency tool, but disclosure alone is not enough. To meaningfully prevent and address modern slavery, all companies, including private entities, must take concrete steps to identify, mitigate and remediate modern slavery risks in their operations and supply chains.

"Australia must introduce mandatory due diligence reforms and penalties for non-compliant businesses to improve not just the quality of reporting, but real-world action to address modern slavery."