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Why supplier assessments matter when tackling modern slavery risks

Bryton Ale avatar
Written by Bryton Ale
Updated this week

What is modern slavery?

Modern slavery occurs when a person is exploited and cannot freely leave their work or situation due to threats, coercion, debt, or deception. It is a serious crime and a severe violation of human rights.

Modern slavery can occur in any country and is often hidden. It does not always involve physical restraint. Common indicators may include:

  • Withheld or unpaid wages

  • Unfair recruitment fees or the need to work to pay off a debt

  • Confiscation of identity documents

  • Threats, intimidation, or fear of deportation

  • Deceptive recruitment or labour hire practices

If a person cannot leave their work freely or is being controlled through fear, debt, or deception, this may indicate modern slavery.

Why suppliers are critical to tackling modern slavery

Modern slavery risks most often sit within diverse supply chains rather than at the head office of large organisations. Suppliers can be best placed to provide information about workforce practices, recruitment arrangements, labour hire, subcontracting, and sourcing locations.

Supplier assessments enable organisations to:

  • Understand how suppliers operate

  • Assess what suppliers know about the issue of modern slavery

  • Identify how and where people may be at higher risk

  • Work effectively with suppliers to provide guidance or support

  • Focus on collaboration and improvement rather than assumptions

Without supplier responses, assumptions are made and risks may remain hidden, meaning organisations cannot manage those risks effectively and opportunities to improve working conditions are missed.

Completing an assessmentis not an administrative exercise. It is a practical way to understand what’s going on, make risks visible and support meaningful action.

The legal context

Under the Australian Modern Slavery Act 2018 (Cth) and other international legislation, many organisations are required to:

  • Identify modern slavery risks in their operations and supply chains

  • Take action to address those risks

  • Measure change over time

  • Report annually on those risks and actions

Supplier information is essential to meeting these obligations. Self-Assessment Questionnaires (SAQs) help organisations understand supply chain risks and report on those risks accurately and transparently, as required by law.

What completing an assessment does – and does not – mean

Completing a supplier assessment:

  • Does not imply wrongdoing or suspicion

  • Is not an audit or a certification

  • Does not require perfect systems or policies

Instead, it:

  • Supports honest identification of potential risks

  • Provides a range of free, international educational resources on the topic

  • Enables proportionate, practical responses

  • Encourages constructive engagement between organisations and suppliers

  • Helps ensure risks to workers are not overlooked

Honest responses are more valuable than “perfect” ones; that way, the right resources can be provided at the right time to support continuous improvement.

Working together to address risk

Our clients want to collaborate with suppliers and other businesses that are working to address modern slavery risks within their supply chains – whether they are just starting out, or developing new initiatives to support human rights.

By completing the assessment, you help organisations understand how to work better with you and how to provide support where needed. You also contribute to required annual reporting on modern slavery and human rights risks under the Modern Slavery Act 2018.

Suppliers are strongly encouraged to complete assessments as soon as possible so organisations can engage constructively and address risks in a timely way.

If you have questions about an assessment or the supplier platform, contact [email protected] or your nominated contact at the requesting organisation.

About Informed 365

Informed 365 is an Australian sustainability and compliance platform that helps organisations collect supplier information, assess modern slavery risks, prioritise action, and meet reporting obligations under the Australian Modern Slavery Act 2018 (Cth).

In summary

Supplier assessments are a practical tool for understanding suppliers’ levels of knowledge and action, and addressing modern slavery risks.

By completing an assessment honestly and accurately, suppliers play a direct role in strengthening responsible supply chains and reducing the risk of harm to people.

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