Modern slavery engagement to continue despite govt setback

Mint Asset Management will continue engaging with companies on their approach to modern slavery even in absence of the legislation.

Monday, August 5th 2024, 12:44PM

by Andrea Malcolm

Mint head of responsible investment Rachel Tinkler, says, “There is certainly interest across the industry to continue to upskill in this area too, with a couple of avenues for a broader investor engagement on this topic under consideration.”

Her comments come after the coalition government disbanded the modern slavery leadership advisory group.

A statement from Workplace Relations and Safety minister Brooke van Velden indicates that while the policy work programme for modern slavery remains under consideration it isn’t a priority. Instead she expects NZ business to self regulate.

“Modern slavery is a concerning issue that should be appropriately punished where it has occurred. However, I would stress that regulations are not required for businesses to review their supply chains and ensure that they are free from modern slavery.

“New Zealand already has policies in place that meet the requirements set out in our free trade agreements, including through issuing guidance for businesses on responsible supply chain practices and by promoting the OECD’s guidance for Multinational Enterprises. There are also existing criminal provisions for those directly involved in slavery and human trafficking”

In February this year Mint spearheaded a letter co-signed by fund managers including Milford, Fisher Funds, Harbour Asset Management, Aurora Capital, Kernel, First Sentier Investors, Aspiring Asset Management and Trust Management, urging the government to create strong modern slavery laws in New Zealand.

Modern slavery refers to situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power. It’s a hidden crime that covers forced labour, debt bondage, forced marriage, slavery and slavery-like practices, and human trafficking. Conservative estimates by the international human rights group Walk Free show that 8,000 people live in these conditions in New Zealand.

Last year the Labour government announced the drafting of modern slavery legislation after an MBIE consultation which received more than 8000 submissions. Labour proposed that businesses earning more than $20m in annual revenue would have to make an annual disclosure statement, similar to Australian legislation, identifying risk, actions taken to address them.

Earlier this year a Financial Services Council webinar looked at the specific risks faced by financial institutions and the potential consequences such as reputational damage, legal ramifications and financial losses. Panel member KPMG director of human rights and social impact Gemma Livingston many large clients of KPMG were now required to do human slavery reporting globally.

National had been previously supportive of legislation and said Labour had taken too long to implement it.

Tags: Mint Asset Management