Publication
Major overhaul to environmental legislation: What does it mean for you?
Penalties for many environmental crimes will double under the Environment Protection Legislation Amendment (Stronger Regulation and Penalties) Bill 2024.
Global | Publication | December 8, 2017
The Chair of the Foreign Affairs and Aid Sub-Committee, Mr Chris Crewther MP, yesterday tabled the Joint Standing Committee on Foreign Affairs, Defence and Trade’s (Committee) Inquiry Report seeking to address the scourge of modern slavery in Australia and abroad (Report). The Report has made 49 recommendations with respect to introducing a proposed Modern Slavery Act. The most significant recommendation is the requirement for companies, organisations, government and other legal entities with an annual revenue above $50 million to publish an annual modern slavery statement (Statement), including the following criteria:
In addition, it is recommended that the Statement:
The Committee has recommended that the definition of “entities” subject to the mandatory supply chain reporting requirement include, but not be limited to: companies, businesses, organisations (including religious bodies), governments, bodies corporate, unincorporated associations or bodies of persons, sole traders, partnerships, trusts, superannuation funds and approved deposit funds.
The recommended timeframe for the provision of Statements is within five months after the end of the Australian financial year. Assuming the Bill is passed before July 2018, entities would likely have to submit first year Statements by November 2019.
The Committee does not envisage the imposition of financial penalties for non-compliance in the first year of reporting, but recommends introducing penalties for entities that fail to report in the second year of reporting onwards. The Committee recommends a review of further penalties as part of the first three-year review of the Act.
Reputational risks amid increasing public and investor scrutiny are likely to promote compliance with the reporting requirements. One of the recommendations is the publication of a list of entities required to report, a list of entities above the threshold who have reported, and the entities below the threshold that have reported voluntarily. This will work to improve accountability, transparency and reward compliance. It is also recommended that a list be published with the entities above the threshold that fail to report after the second year of reporting onwards.
Entities that supply goods or services to the Australian Government should note that the Report recommends that the Australian Government only procure from entities that comply with the modern slavery supply chain reporting requirement, regardless of whether their income exceeds the proposed revenue threshold or not. In the event that this recommendation is accepted by Parliament, it will have significant implications for many entities involved in servicing the Government sector.
In light of the bipartisan support for a Modern Slavery Act, it is likely that the legislation will be passed in the House of Representatives and the Senate in the new year. Now is therefore an ideal time to review your business’s operations and supply chains for human rights impacts.
Having regard to the reporting criteria, companies and other legal entities ought consider the following steps:
By undertaking these steps, businesses will be well placed to respond effectively to new regulations and show that they are committed to eradicating modern slavery, in Australia and overseas, and taking concrete steps to achieve that objective.
Norton Rose Fulbright is a global law firm, with 63 offices across Europe, the USA, Canada, Latin America, Asia Pacific, the Middle East and Central Asia. We have experience in Australia and globally assisting clients with modern slavery risk management and reporting, as well as broader business and human rights advice. We made a submission to the Inquiry (No. 72) and participated in the public hearing held in Sydney on 23 June 2017. Click here to download our paper. We also have been actively participating in the Attorney-General’s Department national consultation process to refine the Government’s proposed Modern Slavery in Supply Chains Reporting model.
For more information, contact Abigail McGregor, JP Wood or Greg Vickery to discuss how modern slavery legislation may impact on your business and ways to manage your supply chain risks
Publication
Penalties for many environmental crimes will double under the Environment Protection Legislation Amendment (Stronger Regulation and Penalties) Bill 2024.
Publication
On March 13, the Canadian Sustainability Standards Board (CSSB) published two Canadian sustainability standard exposure drafts – CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2, Climate-related Disclosures (Draft Canadian Standards).
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